Workplace Pension

[Bazile]

Under the new Government initiative , all eligible employees will be enrolled into a workplace pension scheme .

Would it make any sense for a lady age 55 to stay enrolled into a scheme or would it be better to opt out ?

I'm thinking she does not have enough years left until retirement for it be of any appreciable benefit

[Sipowicz]

.....unless it is on medical grounds and has been enhanced.

[Bazile]

//Baz, the "universal pension" is the new state pension. //

hang on - i'm getting a little confused here - i thought it is a 'workplace' pension - that's what it says on the paperwork she has received .

Have i confused myself by saying 'universal pension ' in my post above ?

[Sipowicz]

I'm referring to the "universal pension" which FF mentions, which is the new state pension. It will do away with lots of means tested benefits.

[wolf63]

I got it on medical grounds from the civil service. It isn't a high pension - I got (enhanced) 31/80ths of my final wage.

I would much rather have my health back.

[Sipowicz]

I think you're talking about the new auto enrolment workplace pensions?

[Sipowicz]

Ah, I thought so, thanks wolf.

[Bazile]

thanks all

[Old_Geezer]

Surely if you have been fortunate to have invested enough beforehand, then you could draw a massive pension at 40 ? Or else why have I been paying in £5,000,000 a week for the last 10 years ?

[Sipowicz]

....because you're expecting one hell of a rainy day?

[factor-fiction]

Because you've been getting tax relief at your highest marginal rate on those contributions O_G, there's a restriction on how early you can start to draw on your pension. I'm afraid you'll have to wait quite a few years until you are 55.

[factor-fiction]

Thinking again about the point about withdrawing pensions as cash following the budget changes, I think that applies only to personal/private pension schemes and not to company schemes provided by your employer (unless they are below a small figure) so I don't think it generally applies to these new workplace pensions.

[Sipowicz]

If it's a defined contribution scheme, you can, if it's a defined benefits scheme, you can't.