nik52wrx

Basically everyone in the company i work for has been asked to take a pay cut, the company needs to reduce everyone's employment package by 10%.
This is to be achieved in one of two ways, a straight 10% pay cut or a mixture of pension cuts and pay cuts.
Most in the company contribute 5% of their salaries into a pension which the comapany matches with another 5%. A lot of people are stopping their contributions and opting for the comapny to stop its contribution thererfore achieving the 10% cut. Result is net salary remains the same but pension contributions stop.
I have been looking at my pension and the unit prices are quite low so i it must be a good time to by more units, or am i missing something ?
I'm therefore thinking about taking a bigger pay cut and leaving the company to keep its contributions into my pension.

Does this seem sensible or should i grab as much take home pay as possible until all this blows over and play pension catchup later.

Nik.

EddScott

Yes


No


Yes when markets and therefore fund unit prices fall, it is an excellent time to buy. No, don't wait for things to recover then put money into your pension because the unit prices will be higher and you get less for your money.

Pensions do work BUT you have to make a working life-long commitment to them and make sure its managed properly and funded properly. Many pension - averse people will fall into one or other groups that didn't abide by the above caveats.

If you can afford it take the pay cut and keep the pension going and hope that those in charge of your scheme are doing a good job.