Help!!

macg1953

I have just joined a new company in the UK with a promising future and would look to stay with them until I retire at 65. I am currently 56, Part of the pension package is for me to pay into a defined pension scheme whereby I pay in up to 6% of salary & the company match it. If I dont take up the pension option, they will pay me an additional 7% of salary. I am a higher rate taxpayer.

I can see that the pension option is a far better deal longer term, but are there any personal plans that would match what the company scheme would provide, taking into account I would pay in to a personal plan the 7% (tax reduced by 40%, approx equal to 4% gross) and the 6%?
Thanks.

yelf

defined contribution i assume? Nothing would match it: a personal pension would provide tax relief (as you would get on your contribution to the employers pension) but thats it. You're getting an extra 6% for nothing by joining the employers pension.

CLAPTON

as I understand you if you pay in 6% into the defined contribution pension scheme they will add 6% making a total of 12 %

or they will give you an extra 7%.... tax wise you would be better off taking the 7% and investing 13% into your own pension fund but when you factor in NI contributions (2% after april) then you would be worse off