Is it worth me and my kids paying in?

Posted on: 02 March 2015 by James Hester

Workplace Pensions could give both you and your children a chance to build up a decent pension pot.

Is it worth me and my kids paying in?

Recent changes to Workplace Pensions as part of the introduction of what’s known as “Automatic Enrolment” mean that both you and your children could get extra money.

Extra money

The changes mean that every employer must automatically enrol workers into a Workplace Pension scheme if they are aged between 22 and state pension age, earn more than £10,000 a year and work in the UK.
Employers will need to make regular payments into the pension schemes of all workers who are automatically enrolled as well as  some of those workers who choose to opt into the scheme.

Those workers who choose to opt out of their workplace scheme are turning down extra money from their employer as well as tax relief on their own pension contributions. It’s hassle free for you as your employer takes care of all the admin.

And although pension rules do change over time, the value of savings already made in the pension system should be protected from any further rule changes.

“Automatic-enrolment is a flagship pension policy supported by all parties so people should feel confident that they will benefit from Workplace Pension savings,” explained an independent financial expert.

Earlier the better

Both you and your working children have everything to gain from being enrolled in a Workplace Pension. “The two biggest factors which affect the size of your pension savings at retirement are the amount invested and the length of time the money is invested for,” added the financial expert.

It’s never too early or too late to join a Workplace Pension, especially as you could get extra money from your employer. You and your children should save now to enjoy a better retirement.

For more information visit DWP Workplace Pensions 

Return to 'We're All In' Workplace Pensions hub 


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