Offered the opportunity to leave a pension scheme

worried_jim

Thanks. This is getting far more interesting/complicated than I thought. I am glad I posted to get myself more aware of the situation I am in.

One more additional question- If I wanted to start to put away an extra £50 per month into one of my funds, my current employee scheme would be best as my employer would also pay more in as a contribution -right (rather than start to pay into Winterthur again)?

atush

EVery employer scheme is different. Some/many will contribute 1% for every 1% you do, up to a limit (3, 5, 6% or even more if you are lucky). So ask.

Make sure you are contributing the amt that gets you the most eomployers contribs (ie if they will give up to 6% but you are only doing 3%, up yours to 6% etc). you can usually add more, but they won't increase theirs after a set amt.

worried_jim

I've just returned my fact finding form to JLT wealth management. It was very straight forward to fill in especially as I had worked out all of the figures and had all of the plan names to hand. I now await to see what happens next and what they advise before making my mind up.
I have since discovered that I currently contribute 2% of my monthly salary to my present employee scheme and my employer contributes 6% taking it up to 8%. However, if I up my bit to 4% they will up their contribution to 10%. This is something that I am definitely going to change as it would be stupid not to- it's like turning down a 4% pay rise.

Edit-
I actually contribute 3% (this went up in August). If I up my contribution to 5% the company will add 13%.

atush

Now aren't you glad you asked us ;-) Free money is always good!

jamesd

Those employer contributions are a good deal, higher than usual with lower than usual requirement for your own contributions.

worried_jim

jamesd wrote: »

Those employer contributions are a good deal, higher than usual with lower than usual requirement for your own contributions.

I would be stupid not to take advantage!

Company contributions

Your employer also pays company contributions into your account up to a maximum of 13% depending on the core contribution you make.
Your core contribution rate Company contribution rate Total invested in your account
3% 8% 11%
4% 10% 14%
5% 13% 18%

You can choose to contribute more than 5%. These contributions will be classed as Additional Contributions. However, the maximum company contribution is 13%.

atush

Are you less worried now Jim?

worried_jim

atush wrote: »

Are you less worried now Jim?

Actually- Yes. I am very happy about my financial planning for the future, especially now that I am changing my contributions to 5% so I can get the maximum company benefit at 18%.
This may change when the review comes back.

kidmugsy

Eggs and baskets - since your now and future pensions are likely to be all defined contribution, it might be wise to retain your defined benefit one (i.e. the final salary one).

Meeper

It would likely be wise to retain your DB scheme regardless, based on the information to hand in the thread thus far.

Don't be concerned about the Protected Rights / non-Protected Rights split. This is only really of any relevance in terms of spouse's death benefits if you died, and Protected Rights are being done away with in April, so everything will fall under standard terms.