Workplace pension. Opt out or not that’s the question?

[Londoner90]

So I have been paying workplace pension but I have been thinking about opting out and just have the cash now...
Any opinions on do it or not? I have always paid it, I believe I have been paying the minimum only but I’m thinking that what if I don’t make it to retirement 😂 yes a bit morbid but what if I am saving for something that will never come ...
I guess I can always opt back in, or can I ?

Can anyone help with this please?

@keepgoingorstop

You don’t need an IFA for that... but for some people, who wouldn’t think about that, the IFA could add value.

Or just consult you @Cocomarine and get some of those fixed interest shares, they sound fab!

Why the need for sarcasm @keepgoingorstop ? Just because you didn’t read my post properly? Or maybe struggle to understand using a fixed return for illustrative and comparative purposes, when modelling scenarios?

*
For example: £100 overpaying a mortgage at 1.65% for 20 years, vs £100 in your pension with a 3.8% stock market return. What’s the difference?*

Both of those scenarios are completely unrealistic

FWIW, I saw an IFA once and found it of no value at all 🤷🏻‍♀️ But I think they can help, depending what you need to know.

I'm that case, you weren't a successful one!

You would also understand the need for CPD to keep up to date, which you're not!

You'd understand that no IFA would want to give advice on a speculative should I stay in my WORKPLACE pension, what would that cost the client? How would they justify their fee?

Best stick to whatever you're doing now.

And where does age 67 come into anything?

@Cocomarine

[quote keepgoingorstop]@Londoner90 contact an adviser to say what exactly?

They can't tell you how long you'll live, can they?

Can you afford the contributions yes or no? If you can then carry on. If not stop.

It's really very simple!

If you die before taking benefits from the pension, your beneficiaries will receive it IHT free!

What's the actual problem with feee money by way of an employers contribution? Tax relief at source? Ignore the people spouting on about NI savings, it's a workplace pension and I'm damn sure it's not paid via salary sacrifice, is it? [/quote]
Why wouldn't it be salary sacrifice? Many workplace pensions are. Mine is.

Firstly, you can draw pension legally from age 55, not 57.

Can you?

*@keepgoingorstop ? Just because you didn’t read my post properly? Or maybe struggle to understand using a fixed return for illustrative and comparative purposes, when modelling scenarios?

Things have moved on just a bit sense then @Cocomarine

Since not sense! 🙄

@VanGoghsDog obviously I agree with you agreeing with you that @Feminist10101 was wrong for replying to my post with a response that drawing at 55 meant a reduction.

But to clarify the 55/57 point.

The current pension freedom legislation allows for access at 55. However, the same legislation followed consultation papers that said that the age of access should be SRA minus 10 years. That hasn’t been enacted by parliament yet - however, a question in the commons this year referred to it - and it was confirmed that it is still intended to enact it. So for me personally, SRA -10 will be 57. Later for others. I alluded to it in my first reply, but said I wouldn’t go into details. I didn’t want to bog down the thread at that point - but also didn’t want to wrongly state 55 to OP

*Firstly, you can draw pension legally from age 55, not 57.

Can you?*

Currently yes you can!

keepgoing why are you so aggressive to Cocomarine?

@blueshoes because she's giving awful advice! Why are you asking?

FWIW, I saw an IFA once and found it of no value at all 🤷🏻‍♀️ But I think they can help, depending what you need to know.

I'm that case, you weren't a successful one!

You would also understand the need for CPD to keep up to date, which you're not!

🤣 @keepgoingorstop again, are you actually reading? Are you up late and tired? I never said I WAS an IFA once, I said I SAW an IFA once. So - accusing me of not doing CPD is misplaced - and just funny, really.

@VanGoghsDog I bet you OPs isn't via salary sacrifice, people staying NI savings haven't even asked that question.

@TiddyTid

_* For example: £100 overpaying a mortgage at 1.65% for 20 years, vs £100 in your pension with a 3.8% stock market return. What’s the difference?*_

Both of those scenarios are completely unrealistic

Which is my point. That it can be useful to see an IFA, as otherwise how are you going to determine what realistic assumptions you should use, to decide what to do?

[quote keepgoingorstop]@blueshoes because she's giving awful advice! Why are you asking? [/quote]
She isn't. And your posts are barely legible!

But it is correct that currently you can draw from a pension, by law, at age 55. It doesn't make sense to say it's 57 when that law has not yet been enacted.

It might be 57 for some people in the future.

Sorry I misread you're extensive knowledge as being an IFA once, You saw one?

I saw a doctor once, know everything medical
now and able to give diagnosis.

_*Can you?

Currently yes you can!*_

Unless you're under a certain age or not seriously ill

keepgoing I am a lawyer and I see inaccurate advice on mn but I don't go for anyone's throat like you do.

I cannot comment on Cocomarine's advice, some of which is too technical for me, but there is nothing in there which warrants your rudeness.

[quote keepgoingorstop]@VanGoghsDog I bet you OPs isn't via salary sacrifice, people staying NI savings haven't even asked that question. [/quote]
Sorry, can you write that again in English?

I doubt the op knows if it is ss. I run workplace schemes and no matter how much briefing I do, no-one seems to understand the sal sac part. I've even drawn up groovy graphics. They just forget.

@VanGoghsDog where did I say it was 57? Please do let me know!

From memory I said it's currently 55? Which it is.

My posts must be so bad you're reading things that I haven't even said!

(Awaits blame that I confused her!)

[quote keepgoingorstop]@VanGoghsDog where did I say it was 57? Please do let me know!

From memory I said it's currently 55? Which it is.

My posts must be so bad you're reading things that I haven't even said!

(Awaits blame that I confused her!)

[/quote]
Sigh. I didn't say you did.

You're too tedious for words. Go to bed.

@keepgoingorstop I think you’re being quite aggressive in all honesty.

@VanGoghsDog thanks for sticking up for me... I’m not quite sure why @keepgoingorstop seems to have it in for me!

Whilst I take your point on the change to age 57 not being enacted yet, as I also said, I do think it needs to be highlighted. It’s not just a vague potential change. There’s plenty of press but here’s one piece about the question being asked of the Treasury this year.

www.which.co.uk/news/2020/09/pension-freedoms-age-to-rise-to-57-how-could-the-change-impact-you/

It wouldn’t be correct to tell an OP in their 20s that it’s definitely 57 (actually if SRA minus 10 it’ll be later!) but I don’t think it’s accurate to state 55 without giving some indication that it is very well documented that it’s expected to change!

I don’t think there is much benefit in consulting a financial advisor for a small workplace dc pension. But it’s a good idea to keep paying unless you really can’t afford it for reasons others have said.

While you can draw a private pension at 55 at the moment the government have stated their intention to raise this to SRA - 10

@keepgoingorstop

Sorry I misread you're extensive knowledge as being an IFA once, You saw one?

I saw a doctor once, know everything medical
now and able to give diagnosis.

You know your choices of keep going or stop? Please... just stop 🤣

You are really rude to me about my lack of CPD because you misread my post. Instead of saying “whoops - sorry!” you come out with that?

You are one step away from, “I know you are, because you said you are” 🤣

You’re embarrassing yourself.