a few 'blonde' questions re: pensions & childcare vouchers...any experts??

[dinkyboysmum]

trying to figue out our finances for when dc2 arrives in july...wonder whether anyone can help with these questions:

1. to try and save some money, should i defer/opt out of my pension? i dont understand pensions at all! i know if i opt out i will end up paying more NI/tax...how much do you think i will save overall? i normally pay about £150/month into pension. also, if i keep my pension, do i still contribute to it whilst still on maternity leave (on SMP?)

2. does my employer still provide me with childcare vouchers whilst i'm on maternity leave, receiving just SMP? do i still need to pay for them? is it taken out of my SMP?

Hi, with pensions you really need to talk to your HR department or pensions team and find out what the rules are - every scheme will be different.

Some will allow you to contribute based on what you are actually earning (so if you are on SMP you will pay the same percentage of SMP as you currently do of your full salary). Some may allow you to stop all contributions while on maternity leave and restart again when you go back to work, and then you can make extra payments if you want... like I said, it all depends on the specifics of your pension scheme.

Be careful about opting out completely though as you might not be allowed to join again (especially if you are in a defined benefit fund).

As for childcare fraid I have no idea!