Will you be opting out of NEST?

[chem1st]

http://www.guardian.co.uk/money/2012/sep/22/auto-enrolment-company-pension-scheme?newsfeed=true

 

Next month your wages might well be lower if you work, people are being placed into a pension scheme called NEST without being asked if they wish to contribute.

 

Eleven million workers will start being automatically enrolled in pension schemes from 1 October as part of a scheme to ensure everybody has enough money to live on in retirement.

 

Anyone who is aged 22 or over, earning more than £8,105 a year and has been employed for three months or more will be made a member of either their employer's existing occupational pension scheme or an alternative scheme chosen by their employer. The scheme is being phased in over five years, starting with the UK's biggest companies and culminating with those that have just one or two members of staff. The amounts of money involved will be increased gradually to prevent contribution-shock – but by October 2018, all employees must contribute at least 4% of earnings, their employer will contribute 3% and they will receive a further 1% in tax relief.

 

Pensions minister Steve Webb predicts that about a third of those who are auto-enrolled will later opt out, but adds: "If we can get 7.5 million people in an employer contributory scheme, that will be incredible." He's right: it means that millions of people who might otherwise have nothing to live on but the basic state pension topped up with benefits will have a private pension to boost their standard of living when they retire.

 

Many people will be no better off for investing in this pension - far better to get topped up by pension credit and get all the means-tested freebies.

 

Many will have a state pension, private pension and still get pension credit, (but less pension credit due to their private pension).

 

To be honest, you can't guarantee any of this pension. You do not even know what your retirement age will be. It's effectively a tax to make bankers better off!

 

No way will I be paying into NEST. I will be opting out. I will not be paying anything into a pension EVER. I do not trust them.

 

With the way the retirement age is rising I doubt I'll ever retire. A year on the dole ever ten years would make more sense to me than giving money to bankers in the hope you get a bit back if you manage to live till retirement age.

 

Will you be opting out of NEST?

 

Or are you happy for your pay packet to shrink further?

[PeteMorris]

Well every company I've ever worked for since I was about 40 has had a pension scheme, and you get the usual 'projected' figures, and I've 'always' been told, don't waste your money, cos you'll have to put stupid amounts of money in there, to have any hope of getting anything like a decent return. Consequently, I don't have a personal pension in anyones pot!

 

So I assume it would be the same(for me) no matter what scheme they come up with.

[chem1st]

Going to bump this now lots of people will be home form work. I bet many haven't got a clue about these changes. And won't realise till their pay packets shrink next month...

[Mister M]

Yes I will be opting out as I already contribute to a works pension.

 

I wonder if someone could answer a query I have. When I reach my retirement age (if I ever get to retire ), would I be better off just doing what a lot of people do which is not invest in a pension and get what the government gives out as a basic pension; or even if I do continue to invest in my company scheme would I still be entitled to something from the state?

I'm not even sure what the position is for pensioners now in this situation

[chem1st]

The government-backed pension scheme will offer online, telephone and print means for opting-out, but expects the main route to be online.

 

Blakstad said the website process, seen by PP, is 99% of what members will see in October.

Workers who decide to opt-out and click the appropriate button on the website are first met by a message that says: "Not sure you can afford it? You can try it and take a break later."

If they click to continue through the opt-out process, they are met by another screen that asks: "Are you happy to lose out on money from your employers?"

The screen then allows members to enter their salary and see how much they stand to lose in employer contributions and tax relief.

Then they are met by two more screens confirming they are opting-out before the process is complete.

NEST will then inform the worker's employer and write a letter to the individual confirming the opt-out is complete.

On the employer side, employers "engage with the process but do not run it" - which NEST argues relieves the administrative burden around opt-outs.

The process has been structured in this manner based on consultations with behavioural economists.

The economists told NEST the best way prevent bad decisions by members is to highlight that they can opt-out later and stop paying in at any point, as well as the amount they stand to lose in employer contributions and tax relief.

Blakstad added: "What we are looking to do is not to minimise opt-outs, but to minimise inappropriate opt-outs."

 

Read more: http://www.professionalpensions.com/professional-pensions/news/2163908/nest-finalises-opt-process#ixzz27bfQO1CJ

 

They don't want you to opt out!

[chem1st]

Being doing a bit more reading and the will automatically re-enroll everybody after 3 years. So you will have to opt out every 3 years.

 

That is, if you can still opt out. They want to make it mandatory! This is like a private tax unto the insurance companies (banking institutions).

[chem1st]

Enrollment begins today, you have one month to opt out and get your money back, if enrolled today.

[max]

Yes I will be opting out as I already contribute to a works pension.

 

I wonder if someone could answer a query I have. When I reach my retirement age (if I ever get to retire ), would I be better off just doing what a lot of people do which is not invest in a pension and get what the government gives out as a basic pension; or even if I do continue to invest in my company scheme would I still be entitled to something from the state?

I'm not even sure what the position is for pensioners now in this situation

 

If you've paid NI for the minimum number of years, currently 30 years, then you're entitled to state pension, at the normal retirement age, irrespective of whether or not you have your own private scheme. If you forgo your state pension until such time as you need it then you will get an enhanced rate.

 

Check out the relevant website.

[truman]

If you've paid NI for the minimum number of years, currently 30 years, then you're entitled to state pension, at the normal retirement age, irrespective of whether or not you have your own private scheme. If you forgo your state pension until such time as you need it then you will get an enhanced rate.

 

Check out the relevant website.

 

That's true but if you have no other income than a state pension aren't there other benefits you can get? Genuine question. I suppose you need to work out whether you're better off paying into a private pension or spending your cash and relying on the state to support you when you retire.. (think about care home fees etc etc..)

[Agent Orange]

I currently contribute to my pension so this is not applicable to me.