Pension and fixed term contract

[ismellonehugerat]

I'm just about to start a six month fixed term contract. It's maternity so I have no idea if it will go permanent or not.

Would it be worth paying into the pension scheme do you think?

Are you even eligible , normally there is a qualifying period unless for the minimum workplace one. Does employer match your contributions ?

I wouldn't bother, just in case I wasn't kept on. I was in the same situation a couple of years ago, luckily I was made permanent so I joined the pension scheme then.

I would - it's basically a bit extra money for you from your employer, and you can transfer any funds that accrue during your contract into another scheme in your next workplace, if you aren't made permanent.

If they have passed their date for Auto-Enrolment, they have to enrol eligible employees within 1 month of their start date, so as long as your are over 22 and earn over £10k pa and are under the state pension age, you will be eligible and they will have to enrol you anyway - then you can opt-out if you choose to.

Yes, I am eligible. It looks like they pay 10% to my 5%.

Why would you not want to belong to a pension scheme? Particularly one that will give you 5% more than you have to pay in yourself?

It sounds like a DC scheme, in which case the pension is yours when / if you leave the firm and you can transfer it. Knowing the small bit I now know about pensions I would always join a pension scheme when I move roles and I would opt-in / join a scheme as soon as possible on joining the business. Under auto-enrolment a business can delay enrolling you for up to 3 months but that may be just to save them money, so I'd bypass it.

If you keep yourself out of a pension scheme, how are you planning to fund your retirement? All savings schemes have risks, I know, but you need to plan for post-67 surely?

Of course I want a pension but this is a 6 month fixed term contract. It's to cover maternity so very likely that I will be out on the street next year. I'm just asking for advice as to whether it would be worth joining as I haven't been in this situation before.

Apologies OP if I sounded harsh, that wasn't my intention. Six months though would be close to £2,000 in my employer and employee pension contributions combined, why wouldn't you want that in your pot??