Save towards your retirement or repay more of your student debt? It’s a tough choice, one now faced by final year students across the country as they finish off their University degree courses, attend graduation ceremonies and prepare for the start of a new career. The choice consists of remaining opted in to a workplace pension when starting a first job or using that money to repay more of their student debt. According to some new research from the insurer Royal London, graduates earning an average salary who choose to opt out of their workplace pension face a substantial financial risk in retirement. In fact, they could be worse off to the tune of £75,000 in today’s prices, compared to those who stay opted in.
Student loan repayment or workplace pension contribution?
This 786 word blog post examines new research from insurer Royal London into the cost to retirement savings of new graduates opting out of a workplace pension to focus on repaying student loans. Written on 17th July 2018.