Q: I’ve just started a new job with an auto-enrolment pension. Do I have to join the scheme? I’m worried about meeting my living costs if I do.
A: Even if retirement is a long way off, or you feel you can't afford it, it’s still worth starting a pension. It can offer you financial security once you’ve stopped working and it's good value for money as your contribution gets topped up by both your employer and the government.
If you’re worried that auto-enrolment will make it harder for you to keep up with your living costs, ask your employer how much your monthly contribution will be and work out whether you really can't manage to pay it.
Also check if you can claim tax credits or benefits, like Universal Credit.
If you do decide to opt out, you’ll need to tell your employer, because you will be automatically signed up to auto-enrolment.
Make sure you do this within one month to get a refund on the contribution you’ve made.
Free, confidential advice and help is available from South Lakes Citizens Advice on any aspect of debt, consumer problems, benefits, housing, employment or any other problems. We have various outlets across South Lakeland and can also give advice over the phone – telephone 03444 111 444 for an appointment and help, 015394 46464 for debt and on-going enquiries.
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