Latest employment workplace scheme

Dandytf

Seems latest employers workplace scheme work differentley from previous job, when I felt I had full control over Conts AVC's and Investment choices.

Why would additional contributions from myself Not be an option by new pension providers.
If you want to increase your payments, talk to your employer first to see if they can set up the extra payments on your behalf.
Alternativley setup BACS or DD. -
 
Apart from that theres some very limted lifesyle choices Equities etc.

and has been setup from 3% enployee 5% employers, though no Specified options to inccrease percentages.
Is there anything to be aware of by setting up additional DD for sums paid in as employee direct from bank account in addition to 3% auto enroll from payslip.

thanks

Albermarle

Slightly confusing as you say 'additional contributions from myself are not an option'

But then say you can contribute by DD or BACS, which presumably would be additional contributions ?

Regarding % contributions direct from your salary , normally you have to discuss this with your employer , who normally should be OK to change them .

It is better to have higher % from salary than direct contributions if your company operates a salary sacrifice scheme as you save in NI. If they do not operate this then it makes no difference.

Dandytf

Albermarle said:

Slightly confusing as you say 'additional contributions from myself are not an option'

But then say you can contribute by DD or BACS, which presumably would be additional contributions ?

Regarding % contributions direct from your salary , normally you have to discuss this with your employer , who normally should be OK to change them .

It is better to have higher % from salary than direct contributions if your company operates a salary sacrifice scheme as you save in NI. If they do not operate this then it makes no difference.

thanks as i had impression that it was additional payments only i.e. Non % increasing or AVC's

guess i need to check.

thanks

Dandytf

@Albermarle

if it makes no differnce by increasing cont's directley via DD .
Does that mean No NI or Tax reductions.
If so is this a good time to consider a Private scheme or Sipp.
I only want to save as much as possible for upto10 years, though coud be less.

thanks

Albermarle

Whichever way you do it , you will get the same tax relief in the end.
If your work % contributions are paid via a salary sacrifice scheme , then you also make savings on NI .
Otherwise it makes no difference whether you pay via increased % contributions from your salary to your workplace pension,or you open a separate pension and contribute to that.

Dandytf

Albermarle said:

Whichever way you do it , you will get the same tax relief in the end.
If your work % contributions are paid via a salary sacrifice scheme , then you also make savings on NI .
Otherwise it makes no difference whether you pay via increased % contributions from your salary to your workplace pension,or you open a separate pension and contribute to that.

Thanks Salary Sacrifice it is then , only less Investment Funds to choose from.
If your employer is using a defined contribution scheme (like The People’s Pension), then the qualifying earnings used to meet the minimum requirement are based on the post-sacrifice level of salary.

I'll raise Conts and avoid Private for time being.

Dandytf

A few mins to Self Select from funds, nice balance to include a mix of what I enjoyed from a previous pension.

thanks!

Dandytf

I've decided not to increase latest workplace scheme during 2021.
As I'm opening HL Sipp.

Is it unwise to risk 19K from previous  DC  over to new Sipp.

thanks

Albermarle

Dandytf said:

I've decided not to increase latest workplace scheme during 2021.
As I'm opening HL Sipp.

Is it unwise to risk 19K from previous  DC  over to new Sipp.

thanks

There should be no inherent risk in transferring between mainstream pension providers .
The risk is in the choice of investments within the pension.
If you have the same investments in two different pensions then the risk is the same .
If you choose different investments ( in some cases you have to as the investments available in one, maybe are not available in the other ) then the risk could be more or less.

Dandytf

Albermarle said:

Dandytf said:

I've decided not to increase latest workplace scheme during 2021.
As I'm opening HL Sipp.

Is it unwise to risk 19K from previous  DC  over to new Sipp.

thanks

There should be no inherent risk in transferring between mainstream pension providers .
The risk is in the choice of investments within the pension.
If you have the same investments in two different pensions then the risk is the same .
If you choose different investments ( in some cases you have to as the investments available in one, maybe are not available in the other ) then the risk could be more or less.

Thanks I didn't give enough info away.

DC Equities and Diversified growth, both are pre Managed funds.
19.6k. since left this job so no further cont's

New HL  Sipp

HL Multi-Manager Balanced Managed Trust Accumulation
Virgin Climate Change Accumulation   very different choices of Investments. Though Performance Indicators DC funds are very favourable if to be used as future predictions. thanks

 

Albermarle

New HL  Sipp

HL Multi-Manager Balanced Managed Trust Accumulation

That is an expensive choice on an expensive platform .  With HL's platform fee the total charge will be not far off 2%.
Even for an actively managed fund you should be looking at total costs around 1% .