Workplace pension - worth it?

[topless360]

I am writing this in seeking advice for my Dad as he is unsure what to do. He is being enrolled in a workplace pension type scheme where he contributes 1% and the employer matches that. However, I do not know whether this is worth it and whether he should just opt out of it.

The situation is that he is 58 and already has a private pension from a previous employment that pays out each month, not a huge amount but every little helps. The main factor is that he does not know when he will stop working or change employer, or perhaps move to a part time job. It could be in a few months or it could be in 3 years.

What happens to the money in the pension if he leaves in say 6/12/24/36 etc months time?

[Puggit]

Generally speaking it's a good idea to join these pensions. As you state, the company will match contributions, so there's a rise right there.

Money paid in to the pension is also not taxed - so another good reason!

[ChasW]

I can't see any downsides. His employer is offering him extra money, why not take it. If you Dad is a basic rate taxpayer he is paying 80p to get £2 paid into what's effectively a savings account these days (after the budget)

[bad company]

No brainer, take the extra pension £'s. The extra income will help when he retires.

[ATG]

If his employers will match a higher amount he should consider increasing his contribution too.

[topless360]

Thanks chaps, I shall advise him to carry on with it. Does anyone know when the pension pays out, is it at the government retirement age?

[mph1977]

topless360 said:

Thanks chaps, I shall advise him to carry on with it. Does anyone know when the pension pays out, is it at the government retirement age?

auto enrolment pensions like any other 'private ' pension can be taken from 55 or delayed ...