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

A state pension will probably not be enough to live off if the cost of living keeps increasing.
A workplace pension - you contribute & your employer contributes. Depends how u want to live in retirement age - do u want to scrimp and just about manage to get by? Or would u like to treat yourself to a luxury or 2 without having to worry?
Maybe you would be best speaking to a financial advisor to plan for your future
 
The current state pension gives approx £815 per retired person per 28 days (so long as you’ve paid 35 years NI contributions). Is this enough for you to live on? In most cases not so your work pension income tops this up and for us allows us to go on holidays, trips, coffees out etc. Bear in mind for every £1 you put in your employer matches it usually and it’s taken off your salary before you pay tax. Need to bear in mind if your total income in retirement exceeds tax threshold (£12500 approx) you will pay tax on the amount you exceed that threshold.
 
If you don’t contribute to the state pension then make sure you contribute to a private one. A workplace pension (unless it’s gold plated) won’t provide enough for you to live on when you want to retire.
We are literally at this stage in our lives ourselves. My husband reaches 66 this month so will draw his state pension and his work place pensions will provide extra income. I draw mine in 2 years and we’ll have enough to live relatively comfortably without any frills (we’re not big spenders anyway). However it’s a sobering thought that we will have to be careful for the next 20 odd years if we’re lucky enough to live that long. Unless we carry on working we can’t improve on our income or we could downsize but there’s work that needs doing on the house.
It’s worth consulting an independent financial advisor who has a specialism in pensions (it’s a specialist area) now, to make considered and informed decisions for the future as believe me it comes around all too quickly
 
From what I read state pension isn’t much at all!! They fact your employer has to much what you put in is a bonus so 100% do it! I did it with last work place that I was at for 10 years and doing it now with my work and next month I’m going to request to put more in. I’m not going to be rich when I’m 65 as only got £7k saved so far but it will be better than nothing!
 
Pensions are so so important especially when your employer makes a contribution it basically free money for later in life x
 
Pensions are the most cost effective saving scheme, you will live in poverty if you think the state pension will be your only income in old age. Everyone needs to contribute to a pension and save as much as you can as soon as you can. An example is my friend literally paid into her pension 30 years ago for a few years and then forgot about it, she is now 55 years old and the pension provider has just contacted her to say she has £40,000 in that pot and under new pension rules can do a raft if things with it. She has decided to take the 25% tax free element and leave the pot which she will then draw down when she no longer working and will benefit from the tax. I am currently looking at setting up a pension for each of my grandkids and paying money in each month they are both under 2 as this will be the greatest gift I can give them, better than toys
 
Right now pensioners get £820 a month - can you afford to live on just that if you were drawing a pension right now? If no then a private pension will give you an extra income each month. It can be the difference between surviving and living.
 
I’ve got one which has slowly built up (I was in a low wage job for 5 years) but it’s also good to see where it’s heading and it can be divided to children/family should you pass away before it is spent
 
It makes a massive difference. You get tax relief on your contributions, so basically get back the tax you paid on that money when you received it. Your employer also pays in on your behalf. Minimum 3% of salary but some pay more. You can withdraw 25% of your pension tax free. The rest is taxed as income but depending on your tax bracket in retirement, you could pay little or no tax. The pension pot is also invested so should grow along the way.
 
Depends on the lifestyle you want when you retire. State pension isn't much when you consider all the bills you need to pay. If you own your home hopefully you won't have a mortgage by then but if u rent you will still have rent to pay. Plus all other utility bills etc. Then if you want spare money to live more comfortably and have holidays etc then your company pension or a good amount of savings will help with this
 
Think of it as extra pay from your employer and deferred pay for yourself. Employers pay 10-25% or more of your salary into your pension pot. Old age may seem a long way off but the benefits are twofold - when you get your pension 25% you pay no tax on. The rest is taxed but in theory as you go through a career you might be paying 40% income tax. You can put money into the pension and not pay 40% tax at the time, the gross amount goes in. When you retire you’ll probably only pay 25% tax. So the tax saving (25% of the lump sum plus 15%) is substantial.
 
Always always pay into a pension. I’ve been paying into my workplace pension since I was 21, and my family started a private pension for me age 12. When I got to 18 I started paying into that one as well.
 
You're going on the assumption that state pension will still exist. Its not worth the risk. The company contributions is basically free money. I don't know why anyone wouldn't go for that!
 
State pension is currently £203.85. Can you afford to live on that? I know I can't. I have an NHS pension that I pay into on top, I pay 9.5pc and the NHS match my contributions. My other half pays over 13pc and again the NHS match that
 
It’s to provide you with an income upon retirement. The state pension (if it exists then) is nowhere near enough to live on . When you come to retire you can take a lump sum and then have the rest as a monthly income paid to you. It’s absolutely worth it.
I have an NHS pension which will pay quite well and now a Welsh Government pension.
You absolutely will need it which is why they are mandatory now. You can opt out but it’s not advisable.
 
I was under impression and sold when I got mine I'd get both my private and my state but from what I've now read online I believe they will deduct my state entitlement from my private so Im thinking what's point lol 🤣 but I'm not sure I've read right as I am dsylexic x
 
@smokenmirrors yes you will get both! You have to have contributed 35 years NI to be entitled to a full state pension. So if you’ve paid into both you will get both. With most private pensions though you can retire form 55 onwards however the longer you contribute the better your monthly dividends will be. Hope that makes sense!
 
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