Auto enrollment pensions

plodder

https://www.boards.ie/discussion/comment/124013117#Comment_124013117

A simple way of encouraging older people to sell properties that are more suited to family homes: any person over 67 living in a 2-bed or less property gets an exemption from paying property tax or some version of something similar.

Interesting and good idea in principle, but you'll get people declaring the third and fourth bedrooms as offices and gyms etc. Maybe based on floor area it might work though ..

I know someone who was recently tidying up some papers from someone who had died, and they found their payslips. The person has been paying a third of their salary in AVC when in their 60s, so that they could have a reasonable pension, possibly because they had started a pension too late.

If you are in your 60's and can spare the cash then putting a third of your salary into AVCs is an excellent idea, whether you started your pension too late or not.

Hotblack Desiato

Property tax is so ridiculously low that an exemption from it isn't really any incentive to do anything.

https://www.boards.ie/discussion/comment/124012922#Comment_124012922

He says your contributions are not capped at 1.5% and then in the next sentence says you are not allowed do any more than 1.5% ??

Sounds completely clueless and/or has a major incentive to steer people away from auto-enrolment.

Amik

I just spoke with HR and they've offered me a company pension where I’d contribute 5% and the company would match it.

My question is: would it be a mistake to stick with the standard government auto-enrollment pension instead? I know the rate is better but I doubt I’ll be with this company until retirement, so I’m not sure how it works if I leave.

If I move to another employer later, do I take the company pension with me, or does it stay behind?

Enduro

https://www.boards.ie/discussion/comment/124014841#Comment_124014841

Personally, I'd take that offer, especially if you're in the higher tax band. But you can run the maths yourself to see where you're more likely to get bang for buck.

For the second question, in general you can do either. You can leave your old pension or move it to a new company pension. Which is better will depend on your own circumstances and preferences (and the performance of both schemes, which you can only guess). The simpler option is to move the old into the new, so that all your pension is in one pile, and more easily tracked and managed (if you want to). I'm guessing that would suit you more, since you're asking this question in the first place.

blackwhite

https://www.boards.ie/discussion/comment/124014841#Comment_124014841

Maths on it are relatively simple.

If your employer offers you matching contributions, then for someone who pays tax at the standard 20% rate the total investment into your pension is 250% of whatever your reduction in take-home pay is.

Under autoenrollment, the total investment into your pension is 233% of the reduction in take-home pay.

If you change jobs, and they don't offer as attractive a pension, then you can choose not to join it and will be put into the government autoenrollment scheme at that time. Your pension from the old job will stay where it is, earning investment returns until you reach retirement age.

If you change jobs and choose to join the workplace pension scheme at the new employer, then you can choose to leave your old pension where it is, or you can choose to transfer the value of your old pension fund across into your new scheme.

blackwhite

https://www.boards.ie/discussion/comment/124014828#Comment_124014828

I think what he means is a private pension is not capped at 1.5% contributions, but auto-enrollment is capped.