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  • FIRST POST
    • emeraldemma
    • By emeraldemma 5th Dec 17, 8:12 PM
    • 23Posts
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    emeraldemma
    Pension question
    • #1
    • 5th Dec 17, 8:12 PM
    Pension question 5th Dec 17 at 8:12 PM
    Hi,

    Just wondered if anyone can help

    I currently have a government work place pension with NEST. With 1% put in by myself and my employer. I see on the pension advice section it is advised to put into the pension a % of half the gross salary per year based on when the pension starts, and this includes employers contributions. Does my employer have to agree to increase the contributions if I ask them to? As I need to be paying in more than what I am currently.

    Thanks
Page 1
    • Linton
    • By Linton 5th Dec 17, 8:23 PM
    • 8,636 Posts
    • 8,611 Thanks
    Linton
    • #2
    • 5th Dec 17, 8:23 PM
    • #2
    • 5th Dec 17, 8:23 PM
    Employers can pay in whatever they want at or above a minimum level, they are unlikely to pay more just because you ask them.. The current minimum level is 1% but will be going up over the next few years - see: https://www.gov.uk/workplace-pensions/what-you-your-employer-and-the-government-pay.

    You could put more into the NEST pension or set up your own private pension.
    • dunstonh
    • By dunstonh 5th Dec 17, 8:31 PM
    • 89,930 Posts
    • 56,605 Thanks
    dunstonh
    • #3
    • 5th Dec 17, 8:31 PM
    • #3
    • 5th Dec 17, 8:31 PM
    I currently have a government work place pension with NEST
    It is not a Government Scheme. The Govt set the rules on auto enrolment but the employer chooses the pension provider from the marketplace.

    I see on the pension advice section it is advised to put into the pension a % of half the gross salary per year based on when the pension starts, and this includes employers contributions.
    It is not an accurate guide. For some it will be too much. For some it will not be enough. The old half your age rule was to encourage people to undrestand the sort of ballpark their contribution should be. i.e. stop them paying in £20pm into a pension and ticking the "pension done" box and thinking that they will get £2000pm in retirement.

    Does my employer have to agree to increase the contributions if I ask them to?
    Depends on what you mean with that question. Most money purchase workplace schemes will allow you to increase your contribution. However, your employer is not required to increase their contribution.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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