Pension questions
Discussion
Hi
The company I work for has just decided that it's shutting down the pension scheme
I'm somewhat concerned about the future of the money I've been paying in to it for the last 15 years, they've pledged to carry on adding money into the scheme for the next 8 years to help plug a hole, but I still have 3 decades before I can claim a pension. So with my luck there will be nothing left in the pot for me even at it's greatly reduced level.
Can you get your contributions back out of a scheme thats closed?
I realise there would be no way of getting the contributions made by the company on my behalf, but I feel I need to at least try and protect my payments.
I'm so annoyed at this, the govt are banging on about people saving for their golden years but do nothing to look after the schemes already in place!
The company I work for has just decided that it's shutting down the pension scheme
I'm somewhat concerned about the future of the money I've been paying in to it for the last 15 years, they've pledged to carry on adding money into the scheme for the next 8 years to help plug a hole, but I still have 3 decades before I can claim a pension. So with my luck there will be nothing left in the pot for me even at it's greatly reduced level.
Can you get your contributions back out of a scheme thats closed?
I realise there would be no way of getting the contributions made by the company on my behalf, but I feel I need to at least try and protect my payments.
I'm so annoyed at this, the govt are banging on about people saving for their golden years but do nothing to look after the schemes already in place!
As long as your employer is solvent, worry not. The pension you've accrued to date should be pretty secure. You could get the transfer value of the benefits you've accrued to date and take them elsewhere, but this is usually probably not a good idea if your employer has committed to make good any shortfall.
Make sure you join any replacement scheme your employer offers.
Make sure you join any replacement scheme your employer offers.
The replacement scheme looks rather poor on paper.
it's some sort of stakeholder arrangement....what that means I have no idea.
Their contributions are ½ that of current.
I was wondering if i'd be better off saying balls to to it all and looking at other forms of investment.
With my luck the coming scheme will fall on it's arse in a couple of years
it's some sort of stakeholder arrangement....what that means I have no idea.
Their contributions are ½ that of current.
I was wondering if i'd be better off saying balls to to it all and looking at other forms of investment.
With my luck the coming scheme will fall on it's arse in a couple of years
No reason why it should fall on its botty.
If it's a stakeholder scheme it's a personal pension. You own the plan.
If you do not join it, you will lose whatever contribution your employer is prepared to make. If this is 50% of what your employer was paying to the old scheme (and in this case I'd guess they'll be paying between 8% and 12% of your pay) then you'd be throwing away a significant chunk of money.
In defence of your employer, would you be prepared to fund an open ended commitment to people who work for you? Blank cheques?
If it's a stakeholder scheme it's a personal pension. You own the plan.
If you do not join it, you will lose whatever contribution your employer is prepared to make. If this is 50% of what your employer was paying to the old scheme (and in this case I'd guess they'll be paying between 8% and 12% of your pay) then you'd be throwing away a significant chunk of money.
In defence of your employer, would you be prepared to fund an open ended commitment to people who work for you? Blank cheques?
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