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

@smokenmirrors when you pay for a Company Pension (CP) your NI contributions are reduced to offset what you pay for the CP.
So your state pension is reduced, mine is £25 a week less, however, I'm still better off with the two pensions.
I recently found out you can elect to pay the full NI contributions so you get the full state pension when you retire. I really wish I had known that when I was working!!!!
 
@crazykidd correct me if I'm wrong, but I thought you can 'buy' NI contributions if there are any missing. I'm sure that's what Martin Lewis has said but could be wrong. Look on his website, your answer maybe there. Also you can check on gov website to see if youve got full NI contributions.
 
@smokenmirrors you should get both, though tax for total of both is currently taken from the private pension as state pension is taxable. You are still better off than state pension alone. ( current state pension alone is below tax threshold)
 
@smokenmirrors private pensions are taxable but state pensions are not! Therefore I ended up paying £200 month more tax on my private pension when I drew my state pension! Glad I took a tax free lump sum of 25% first!
 
Definitely worth paying into...I did for 30yrs and was able to comfortably retire at 51,without the state pension. Your company will pay into the scheme ,it's tax free so a great way to save for when you retire. Only drawback maybe you can't access any funds until 55 or later, depending on the scheme.
 
State pension isn’t that much. I was just looking at it this morning and at the highest it’s £203 and change a week currently and they raise the age for it frequently. If you pay in to a private pension it should top your state pension up enough that you may possibly get close to a living wage from it.
 
Always always take out a private pension. You can always change it into a SIPP pension which would be outside your estate and can be transferred to your children. The pension age will be much higher in years to come if in fact there is one. If you haven’t paid enough NI contributions your pension will be smaller. You can check on line if you have gaps in your NI and pay the difference. Well worth doing. You will not be able to live on a State Pension.
 
I have a workplace pension and wouldnt be able to live comfortably without it. My state pension is around £600 per month and I dont know how anyone manages on that. My advice would be to carry on paying into it if you want a comfortable retirement.
 
I’m 62 and have an occupational pension which I’ve been drawing since I was 51. I just work occasionally to top things up but i have to wait until I’m 67 for state pension. I have various illnesses which mean i would struggle to make it to 67 working full time, but not I’ll enough to claim pip. You never know what’s round the corner, if you are paying in and you get ill or injured, you should be able to draw it earlier as an ill health pension. Please keep paying!!!!!!
 
The workplace pension is in addition to your state pension so it’s all extra money, however much or little is in it it’s better than nothing. State pensions aren’t very much so everything else you can get is a bonus.
 
You must log in or register to reply here.
Back
Top