How much will my take home pay be if I contribute to my pension

riverbank82

I am considering starting to pay into my works pension.

What I want to know is what my take home pay would be if I contribute.

The rate of contribution is 5.5%.

I have searched google but couldn't find anything to help me.

Any advice would be greatfully received!

McKneff

Some information about your salary would help people work it out.

5.5% of what.............

riverbank82

sorry!

£16132.41

Thanks

Credit_Jake

You can work it out here: http://listentotaxman.com/

Credit_Jake

Make sure you put a percent sign after the amount though.

Without any other deductions (student loan etc) I worked it out as:

2010/2011 = £1,028.81
2011/2012 = £1,051.88

It's a rough guide though, I earn 86p more a month than that site calculates I should.

Peelerfart

Does your employer contribute to your pension too ?

bilbo51

Credit_Jake wrote: »

Make sure you put a percent sign after the amount though.

Without any other deductions (student loan etc) I worked it out as:

2010/2011 = £1,028.81
2011/2012 = £1,051.88

It's a rough guide though, I earn 86p more a month than that site calculates I should.

Fair answer but wrong question.

JasX

As well as working out the change in your take home pay you should look at the total increase in value of your pension you're getting.

With the new pension contribution limits the company I work for has set up a tool that'll project the increase in pension entitlement for the year so having stepped up my contributions thisyear I can see exactly what I'm getting for the extra money.

As it works out I'm abut £250 per month worse off net (or 3k per year) however the additional increase in my pension pot will be 8k over the year (plus that 8k then has potential to grow over time).

You shouldn't be focusing on "I'm going to lose x out of my take home pay" but rather what you're getting for it (employer contributions + tax breaks = free money).

Then you can kick yourself wondering why you wern't doing the pension from the first day you joined if you back calculate how much free money you were offered but decided you 'didn't want'