Should I sign up for this company scheme?

calcio1

For the last couple of years I have been paying AVCs into my company pension scheme.

Now they are stopping that and launching a Stakeholder Pension Plan

Contributions to the Plan are amde using a slary sacrifice method known as Smart Pay Adjustment

It works by you giving up some of your salary; the amount given up is then paid into the Plan as if it is a contribution from my employer.

This method means that you will pay less NICs

The plan is provided by LEgal and General and offers a wide range of funds to choose from

I am 26

My salary is £31600

I have a mortgage of £69000 and no other debts

Anyone have any advice?

gratefully appreciated

exil

Basically, you'll be getting a non-contributory scheme (like the civil service one) in return for a smaller "top line" salary. Apparently these schemes, though they sound like a scam, are legit.

Is it money-purchase or final salary?

calcio1

the original pension was final salary so i presume this is

Debt_Free_Chick

calcio1 wrote:

the original pension was final salary so i presume this is

The AVC part will NOT be final salary if it's going into a Stakeholder.

So ... you'll have your main final salary pension and a money purchase top-up from the Stakeholder.