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  • FIRST POST
    • Bmth100
    • By Bmth100 18th Mar 17, 12:06 AM
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    Bmth100
    Pensions for frequent job movers?
    • #1
    • 18th Mar 17, 12:06 AM
    Pensions for frequent job movers? 18th Mar 17 at 12:06 AM
    I only began full-time work after studies in 2012 and gained a small £4,500 through NEST in pension funds thus far. I then did two contracts (6 & 3 months), before landing my current job.

    I'm now in a great company, but the pension is 2% contribution only, though that's not the issue. The issue is that I work in Project Management and I see the best career option financially to be contracting in future. Given that, I'll likely never settle into a company long enough to have a pension with them, unless I end up with like 40 pensions .. it seems tedious to deal with.

    I feel like I'm going to miss a huge trick in terms of company matched contributions; is anyone else or has anyone else done contracting, and what did/do you do about saving for retirement ? Did you just open a SIPP and forego company pension contributions for a higher contractor wage/day rate and save more yourself?

    Edit: Im thinking about transferring my NEST into a SIPP ...
Page 1
    • Number75
    • By Number75 18th Mar 17, 5:54 AM
    • 157 Posts
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    Number75
    • #2
    • 18th Mar 17, 5:54 AM
    • #2
    • 18th Mar 17, 5:54 AM
    I can't comment on the benefit of contractor vs self enployed.

    But just on your point about it being tedious to have multiple pensions... I'm guessing these days company pensions are going to be mainly simple DC, not DB where you have to think about particular benefits of these being lost.

    These days of so much bring online, is it really so tedious? I think with no-one having a job-for-life, the admin of moving your DC will be a bit like the admin of handing back your company ID card!

    I would pick a SIPP that accepts transfers in, and then every time I left a company, transfer to that SIPP. So at any given time, I'd have to 2 pensions: current employers with (hopefully) their contribution, and my long running SIPP.

    I have an Aviva personal pension and the transfer in I made recently was hardly onerous!
    • Bmth100
    • By Bmth100 18th Mar 17, 7:37 AM
    • 1,019 Posts
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    Bmth100
    • #3
    • 18th Mar 17, 7:37 AM
    • #3
    • 18th Mar 17, 7:37 AM
    l

    I would pick a SIPP that accepts transfers in, and then every time I left a company, transfer to that SIPP. So at any given time, I'd have to 2 pensions: current employers with (hopefully) their contribution, and my long running SIPP.
    Originally posted by Number75
    Actually that's a really good idea, didn't think of that
    • AnotherJoe
    • By AnotherJoe 18th Mar 17, 9:20 AM
    • 6,824 Posts
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    AnotherJoe
    • #4
    • 18th Mar 17, 9:20 AM
    • #4
    • 18th Mar 17, 9:20 AM
    Yep, what number75 said, that way you arealways getting maximum employer contributions rather than turn down free money.
    However, having a pension isn't enough, you need to put enough in it.
    Rule of thumb is, 50% your age when you start as an ongoing contribution. So if you started at 25 then you'd put 12.5% in as a minimum amd stick to that. If you started at 30, then 15% ongoing. 15% age 30, 15% at age 40 and so on.(this is why it's best to start early)

    So, if you have an employer that puts 2% in, take that along with your 2%, but that still leaves a gap which you could either fill by adding more to your employers, or just add it separately to your own personal SIPP.

    And if you go contract / self employed, contribute to your SIPP.
    • LHW99
    • By LHW99 18th Mar 17, 1:26 PM
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    LHW99
    • #5
    • 18th Mar 17, 1:26 PM
    • #5
    • 18th Mar 17, 1:26 PM
    And if it is likely that you will have gaps between contracts, put a little more than Another Joe's percentages in while you're working, so it averages out over time.
    • Alan_Brown
    • By Alan_Brown 19th Mar 17, 7:48 AM
    • 174 Posts
    • 252 Thanks
    Alan_Brown
    • #6
    • 19th Mar 17, 7:48 AM
    • #6
    • 19th Mar 17, 7:48 AM
    I would pick a SIPP that accepts transfers in, and then every time I left a company, transfer to that SIPP.
    Originally posted by Number75
    I've done the same. Each time I moved to a new company I transferred the former company's pension into my SIPP. It's very straightforward, you just supply your SIPP provider with details of the former company's pension provider and your membership number and they take care of the rest.

    When I was contracting, I made direct payments into my SIPP from my limited company (plus I set a pension for my secretary aka wife). They were a good way to get monies out of the company tax free.
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