Pension Opt-out

[danudk]

[*]Hello there, I’m a new employee and I have been automatically enrolled into the pension, being told very clear that I can opt-out. What it’s not very clear is how to opt-out and where can I find info about opting out of the pension. Can anyone give me some adice? I really appreciate it, thank you all.

[RobertT]

All the info about the RMDCP is available via the following link. Take a look at the plan guide for opting in/out:
https://www.scottishwidows.co.uk/save/royalmaildcplan/

Although the question I would ask is, why do you want to opt out?

I appreciate the cost of living issues at present, but a pension is an excellent way to save money due to the tax breaks and employer contributions, and forms part of your overall pay and benefits package. Meaning opting out is like taking a pay cut!

For example:

A full time member of the RMDCP on basic pay of £467 per week and in the highest contribution tier, will pay a gross pension contribution of £28(the amount on your payslip). That tier is 6% employee, 10% RM.

All pension contributions benefit from tax relief and at RM we also get the benefit of salary sacrifice, or PSE as RM call it, which is a saving on NIC's.
Meaning the actual overall net payment would only be £19. The government pay the other £9.

Plus RM will be paying in another £46!

Where else can you pay in £19 and get another £55 given to you free?

[derricksmyth]

[*]Hello there, I’m a new employee and I have been automatically enrolled into the pension, being told very clear that I can opt-out. What it’s not very clear is how to opt-out and where can I find info about opting out of the pension. Can anyone give me some adice? I really appreciate it, thank you all.

You will get more benefits staying in , I agree with Robert

[NWpostie]

The above is sound advice, the younger you start 2, the better your final package will be also if you pay extra into an AVC you can create a lump sum without sacrificing your pension.

Advice is always save as much as you can, every pound saved is a pound for the future, pensions, AVCs, savings plan, ISA etc all goes toward the future.