Is it worth it

A question about : Is it worth it

Ive got a private pension where i pay 6% and my employer adds 20%

Should i stick with that or sign up for the new opt in pension?

i.e the opt in pension its free money i dont have to contribute anything?

whats the flaws of the new opt in pension ?

please advice colleagues at work think I have made the wrong decision

Best answers:

• It's not a case of "signing up" - if you meet the criteria, your employer will have to enrol you automatically. You will still have to contribute, although not at the level you do now, but then if you reduce your contributions then the employer is likely to reduce theirs.
  If your employer is happy to carry on with your current arrangement, then take it - a 20% contribution is not to be sniffed at. However, even if is the case, they will still need to auto-enrol you in their designated qualifying arrangement, and you will need to opt out of that.
• Already commented on your misunderstanding of the auto enrolment rules on your other thread. So, wont repeat that here.
  Quote:
• sigh a 20% employer contribution is the stuff of dreams for me, even 5% would be amazing ... i only get 1%
  if your employer is paying 20% into your pension grab it with both hands
• As others have said, 20% is massive. Turning that down would be like ripping up the winning lotto ticket.
• 20%? That is wonderful! My employer do not even contribute anything at all! You are not making a mistake. You compared to your work colleagues will be much better off as a result. Think of it as part of your remuneration. If you do not use it, then your remuneration will suffer.
  Cheers,
  Joe
• No need to repeat what seem to have been quite consistent views.
  What I would suggest you do, however, is compare the costs on both plan i.e. the one you have the auto enrolment one. You may find that one provides a lower cost alternative and you may be able to persuade your employer to put the 20% into the one that is better value for you at little or no cost to the employer.
  In summary - keep the 20% but make sure it goes into the better plan cost-wise.