Are you within around two years of retiring? Then there are two reasons why you might want to think twice about joining your employer’s workplace pension.
The first is debts you’ve yet to repay. This is because any money you put into a pension won’t have long to grow before you retire. So your money might be better spent paying off debts – especially those with high interest rates.
The second is whether your financial circumstances mean you’re likely to qualify for means-tested State benefits after you retire – for example, Council Tax Reduction. If so, the advantages of taking an income from any pensions you’ve built up might be reduced.
But if you can take your pension as a lump sum instead and you use it to pay off debts, it might not affect the benefits you qualify for.
You can then decide if it would be better for you to pay off any debts instead of contributing to your workplace pension at this stage.