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    • FrugalWeirdo83
    • By FrugalWeirdo83 12th Oct 17, 3:58 PM
    • 35Posts
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    FrugalWeirdo83
    Pension confusion
    • #1
    • 12th Oct 17, 3:58 PM
    Pension confusion 12th Oct 17 at 3:58 PM
    I pay into a work based ben pal pension and put in 50 quid a month of additional voluntary contributions which I was thinking of increasing but can also see that you can make regular contributions based on a percentage of your 'benefit salary'. Im pretty hopeless at understanding all the jargon but wondered if anyone could tell me if there is a difference and if one is better than the other
Page 1
    • Kynthia
    • By Kynthia 12th Oct 17, 4:52 PM
    • 5,042 Posts
    • 7,021 Thanks
    Kynthia
    • #2
    • 12th Oct 17, 4:52 PM
    • #2
    • 12th Oct 17, 4:52 PM
    I pay into a work based ben pal pension and put in 50 quid a month of additional voluntary contributions which I was thinking of increasing but can also see that you can make regular contributions based on a percentage of your 'benefit salary'. Im pretty hopeless at understanding all the jargon but wondered if anyone could tell me if there is a difference and if one is better than the other
    Originally posted by FrugalWeirdo83
    I might be wrong but signing up to put a percentage of your salary means the amount going into your pension increases automatically when your benefit salary (possibly your salary excluding things like bonuses and certain allowances but you'd need to get the definition from work) increases. So you wouldnt need to change the amount as regularly as you would for a fixed figure.
    Don't listen to me, I'm no expert!
    • FrugalWeirdo83
    • By FrugalWeirdo83 12th Oct 17, 5:52 PM
    • 35 Posts
    • 142 Thanks
    FrugalWeirdo83
    • #3
    • 12th Oct 17, 5:52 PM
    • #3
    • 12th Oct 17, 5:52 PM
    Ah that makes sense Thank you
    • worried jim
    • By worried jim 12th Oct 17, 5:56 PM
    • 8,757 Posts
    • 13,372 Thanks
    worried jim
    • #4
    • 12th Oct 17, 5:56 PM
    • #4
    • 12th Oct 17, 5:56 PM
    I would recommend paying in as much as you can, especially if your employer increases their contributions, after all it's free money!
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • enthusiasticsaver
    • By enthusiasticsaver 12th Oct 17, 6:09 PM
    • 4,826 Posts
    • 9,111 Thanks
    enthusiasticsaver
    • #5
    • 12th Oct 17, 6:09 PM
    • #5
    • 12th Oct 17, 6:09 PM
    When I overpaid into my pension I used a percentage basis so every time I had a pay rise the pension contribution also increased
    2 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • worried jim
    • By worried jim 13th Oct 17, 11:56 AM
    • 8,757 Posts
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    worried jim
    • #6
    • 13th Oct 17, 11:56 AM
    • #6
    • 13th Oct 17, 11:56 AM
    When I overpaid into my pension I used a percentage basis so every time I had a pay rise the pension contribution also increased
    Originally posted by enthusiasticsaver
    I'd something very similar, I'm already at maximum employer contributions so I put mine into the share save and share match schemes.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
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