# Private sector pension auto-enrolment



## Wolveryeti (Apr 27, 2012)

This is what's happening from October 2012 (though you will be able to opt out) - rules here

Total contributions from employer and employee will have to reach 8% by 2018, with a minimum 3% to come from your employer. On the one hand it's a more generous deal than what you'd get from a privately arranged plan. On the other, 5% is a lot if you haven't got much money to spare.

How do you feel about this?


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## belboid (Apr 27, 2012)

The 3% is ridiculous, it should blatantly be the majority (if not the entirety) coming from the employer.  Otherwise, the only problem would be that the state should be providing it all anyway...


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## Mr Smin (May 1, 2012)

Search "auto-enrolment mis-selling" - quite a few arguments that this is a shit plan unless you are a scheme provider.


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## zippyRN (May 26, 2012)

belboid said:


> The 3% is ridiculous, it should blatantly be the majority (if not the entirety) coming from the employer. Otherwise, the only problem would be that the state should be providing it all anyway...


 
cue endless arguments about  'affordability' based on various  chicken guts  casting by  actuary voodoo people.

the government  already provides the State Pension and if  you aren't opted-out S2P/ SERPs as well as the pension credit and all the other benefits that  remain open to people post retirement . 

 the entire point of  occupational / company / private pensions is  for individuals to take  responsibility  for  making provision  for their living expenses after retirement.


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## UnderAnOpenSky (May 26, 2012)

I'm assuming this will only affect those with proper contracts as opposed to all the agency, freelance and contract workers out there.


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## Wolveryeti (Sep 30, 2012)

This starts Monday, btw. If you not already in a pension scheme and are unhappy with the prospect of losing 2% of your income in pension payments - and likely 5% by 2018, then you should opt-out within 1 month of being automatically enrolled. This will ensure that all payments are refunded to you. Leave it later than this, and payments will be locked in, basically.


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## mentalchik (Sep 30, 2012)

Not had any notification of this at all from my employer..................don't think anyone knows about it either..........


certainly can't afford to pay out anything else....


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## mentalchik (Sep 30, 2012)

so you can't opt out before it starts ?


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## quimcunx (Sep 30, 2012)

Not heard anything from our pension provider.


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## equationgirl (Sep 30, 2012)

mentalchik said:


> so you can't opt out before it starts ?


More here:
http://www.direct.gov.uk/en/Pension...dpersonalpensions/WorkplacePensions/DG_183783


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## equationgirl (Sep 30, 2012)

quimcunx said:


> Not heard anything from our pension provider.


As best I can tell, it's being phased in, and if there's a pre-existing scheme in place, it (on the face of it) looks like nothing will change.


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## quimcunx (Sep 30, 2012)

That might explain it then.


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## mentalchik (Sep 30, 2012)

I seriously bet hardly anyone where i work knows about this................our employer has said nothing

at my age i just cannot afford to pay out enough to make it worthwhile


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## equationgirl (Sep 30, 2012)

mentalchik said:


> I seriously bet hardly anyone where i work knows about this................our employer has said nothing
> 
> at my age i just cannot afford to pay out enough to make it worthwhile


Larger employers are bringing this in first. If you can seek the advice of an independent financial adviser, I would advise it.


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## mentalchik (Sep 30, 2012)

i will just have to opt out then.......would prefer NOT to have to get money back though, rather not pay it out in the first place !


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## cesare (Sep 30, 2012)

Wolveryeti said:


> This starts Monday, btw. If you not already in a pension scheme and are unhappy with the prospect of losing 2% of your income in pension payments - and likely 5% by 2018, then you should opt-out within 1 month of being automatically enrolled. This will ensure that all payments are refunded to you. Leave it later than this, and payments will be locked in, basically.


It's on a phased basis over the next few years. Largest employers first.

Edit: oops sorry, already pointed out.


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## 8115 (Oct 1, 2012)

The thing that concerns me about this, for low earners, is that people might pay in a load, but state pensions move to be means tested in the long term, so basically someone on a low wage wouldn't benefit from saving because they won't save much more than a state pension.

Is this likely?


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## 8115 (Oct 1, 2012)

I'd be quite up for paying in, as long as it wasn't pointless.


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## equationgirl (Oct 1, 2012)

Here's some more details on contribution levels in this BBC article:
http://www.bbc.co.uk/news/business-19760421


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## weltweit (Oct 2, 2012)

I am generally in favour of this.

The only issue is, what will all these new pension funds be invested in. Will there be some bad investments, with the amount of new money coming in I would bet there will be, and if you are affected, where will you be then?


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