Is a Workplace Pension Worth It? Pros, Cons, and Benefits Explained

G

godzidane88

New member
*****EDIT***** i hear you loud and clear guys! i will REMAIN! thank you for your feedback. i’ve checked my policy, there is just under £20k in my pot currently. I am 40 this week and am assuming the state pension retirement for me will be 68 but if i understand correctly, you are saying that i could retire earlier on my WPP- so 3 more questions:
1- if i die before pension age can my husband/children claim that money? all is not lost
2- i can retire earlier than 68 on my WPP and get state pension at 68 (if there still is one)
3- is state pension only criteria based on your NI input and not on any additional savings? so aslong as you have paid in you cannot be denied a state pension?
i will be checking my NI contributions but i’ve worked since i left school so i must be heading in the right direction by now
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really appreciate the replies though! they have been helpful! thank you ********
Could you please share your opinions on the pros and cons on a workplace pension and is it worth paying in? I understand that the money is tax free and company also pays in but what are the benefits? If my NI contributions fits the criteria at pension age i’ll be entitled to a state pension so what is the additional benefits? i don’t want to continue contributing if it’s not going to make a huge difference at retirement age but it’s never really been explained to me so im just paying it. If anyone could share info in layman’s terms id be very grateful! thank you
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I'm a financial advisor so I have a bit of insight. State pension is rubbish. Mostly just enough for people to get by, not so many luxuries etc. A workplace pension will give you way more financial security in retirement, not just for luxuries but having funds for long term care costs if needed. This is just a high level overview
 
Was genuinely thinking the exact same last night. I pay £20 a week into mine. I have until mid November to back out. So I don't know what to do lol
 
State pension is a max of just over 11k (will be lower if you haven't paid 35 years of NI contributions) this is hard to live on so workplace pension will help give you more income.
 
i can remember Gordon Brown saying many years ago that if you were under 30 at the time (about 20 years ago), you 'probably wouldn't get a state pension' the stakeholder pension scheme was launched after that.
 
State pension will, if you're lucky, be enough to pay your essntial bills, if you don't put your heating on and eat the value brands of food. That's pretty much it. So anything over and above basic 'surviving' needs to come from your private pension. I started mine later in life and now frantically throwing money in there to catch up from the times when I thought it was unnecessary. I want to be able to enjoy my retirement, go on holiday, treat my grandkids, be warm in my own home, eat out occasionally, etc and that won't happen on state pension alone.
 
@hu%E1%BB%874734 yes my mother worked all her life paid in from being 16yrs old passed away at 62 obviously under state pension age so never was able to claim anything absolute disgrace i think the money paid in should at least pay for funeral cost x
 
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