Opting out pension

MAILMAN84 · Post by **MAILMAN84** » 09 May 2017, 22:29

I don't like where the pension crisis is going. I'm 34 and just want to come out altogether. Is this possible? will i get any money now for doing this ie what ive put in etc? Not really wanting a moral discussion on it, I don't expect to not have another income up my sleeve at all times.

Regards

Post by **RobertT** » 10 May 2017, 04:53

You can stop paying in whenever you like and you might be able to transfer some or all it to another pension scheme if you want. But transferring out of a salary based pension into a DC scheme isn’t a very good idea and you wouldn’t be able to touch any of the money until the legal minimum age, which is currently 55. There are plans to increase that to 57 by 2028, although that’s not written in stone.

The changes to the RM pension are crap, but your contributions will still benefit from tax relief and PSE and you’ll still get a good percentage off RM. So anyone who opts out would be refusing a considerable amount of free money.

Nobody likes what's happening at the moment, but a crap pension is still better than no pension!

Also bear in mind that your state pension age is currently 68 and is likely to increase before you get there.

You may not expect to not have an income at all times, but things do change and presumably you’ll want to give up work at some point. Your future self may well be glad you’ve got that pension tucked away!

MAILMAN84 · Post by **MAILMAN84** » 10 May 2017, 05:59

Like I say not wanting a moral discussion just want to know if can cancel it and get back what I've paid in right now

hans solo · Post by **hans solo** » 10 May 2017, 09:49

got a point
what if cwu were to tell rm all members were pulling out of pension
rm still have to put up a pension legally and contribute
where would that take us

MAILMAN84 · Post by **MAILMAN84** » 10 May 2017, 10:02

Well tbh its confusing as heck to me cuz surely I can say no don't want a pension and they can let me leave . I guess maybe not tho.

Tman · Post by **Tman** » 10 May 2017, 10:29

If you find it "confusing as heck" then the last thing you should be doing is the drastic step of leaving the pension scheme. What are the positives to that....less money when you retire?

MAILMAN84 · Post by **MAILMAN84** » 10 May 2017, 10:59

Quick money needed basically it. Well tbh I was never in the pension. Only just realised they forced me back into it when they changed to the new scheme. If can get my contributions back I'll opt out if I can't I'll leave it. Just personal reasons for not wanting a pension tbh.

Post by **RobertT** » 10 May 2017, 14:21

hans solo wrote:got a point
what if cwu were to tell rm all members were pulling out of pension
rm still have to put up a pension legally and contribute
where would that take us

Legally every employer has to opt their staff into a pension every 3 years, if they’re not already a member. It’s then up to the individual whether they want to opt out or not. You don’t have to pay in if you don’t want to, but you obviously won’t get the tax benefits or the employer contributions either.

MAILMAN84 wrote:Well tbh its confusing as heck to me cuz surely I can say no don't want a pension and they can let me leave . I guess maybe not tho.

There are rules associated with pensions which basically say that you will get tax relief and sometimes NI relief(PSE) from the government. But in return for those perks you can’t touch your money until a certain age, which is currently 55.

MAILMAN84 wrote:Quick money needed basically it. Well tbh I was never in the pension. Only just realised they forced me back into it when they changed to the new scheme. If can get my contributions back I'll opt out if I can't I'll leave it. Just personal reasons for not wanting a pension tbh.

It’s ultimately your choice. You can stop paying in if you want to, until you're auto enrolled again. But at 34 you can’t get at what is already in your pot. Unless you've only been paying in for a very short time, info: https://www.zurich.co.uk/internet/works ... 714073.pdf" onclick="window.open(this.href);return false;

Post by **barrowc** » 10 May 2017, 22:55

RobertT wrote:There are plans to increase that to 57 by 2018, although that’s not written in stone.

Did you mean 2028 for this bit as that's the date that I have seen quoted for minimum pension age potentially rising to 57?

Post by **RobertT** » 11 May 2017, 05:14

barrowc wrote:
RobertT wrote:There are plans to increase that to 57 by 2018, although that’s not written in stone.
Did you mean 2028 for this bit as that's the date that I have seen quoted for minimum pension age potentially rising to 57?

Yes, that was a typo. The proposals are that it will increase to 57 by 2028, but nothing's been decided yet.

k979aaa · Post by **k979aaa** » 11 May 2017, 17:59

Knee jerk reactions are not needed now even royalmails management will suffer under these proposals and they got a better deal than us last time but the time to lose some pay for your long term gain has never been so stark so start saving now for the war ahead for your future!