Work place pensions

[Bald-Eagle22]

Ok no one wants to talk about this but it's something that is going to effect a lot of people .

I have lots of facts and figures and I think the auto enrolment will start at the end of next year at my company but a few questions I need to ponder before I do ?

All of my spare cash is currently invested in 2 rental properties I have so I might opt out so I can invest this cash into them anyhow .

1. Who decides where the monies get paid into and what type of investment fund will it be ?

2. Are there are fees to be paid ? If there are its a no brainer opt out for me .

3. Can I designate a date for maturity or is that done by the government ?

4. Is this going to be an annuity based fund at the end of the term , a draw down or will I have access to all my cash on maturity date ?

 

[Bald-Eagle22]

1. It depends who administers the scheme - a previous employer of mine used AXA PPP, and it was invested in one of their funds. I have a SIPP with my current employer where I choose what to invest in.

2. Depends on the scheme - generally yes, if it is invested in a fund of some sort.

3. You can, but there are minimum dates - afaik you can designate a date after your 55th birthday.

4. Depends on the scheme. Normally you'll have the option - drawdown is generally more sensible if you have a reasonable amount in the pot.

Be aware that you probably can't "opt out" - your employer will offer this on a take it or leave it basis. You can transfer-out from most schemes though (i.e. when you leave employment), although to reinvest the cash into property you'd have to transfer out to a SIPP provider (and this will come with its own costs).

Thanks Jamef , I thought I could opt out if I wanted to ? What I ment was the monies paid into this could be used to overpay mortgages I have on BTL , I would like to buy a third property in the next ten years and would have to use equity in the two I already have .

This thing is going to be a whole lot of trouble coming for millions by the looks of it and going by the interest and replies to this thread one that lots don't want to talk about either.