Short term pension contribution

equado

I retired recently with a good company pension and promptly took up another job. My pension and my income make me a higher rate taxpayer. My new employer offers a company pension where I can contirubte 4.5% of salary (or more) and they contribute 16%. Is it worth while paying into this scheme even for the 18 months of my present contract - if only for tax efficiency purposes?

dunstonh

its not just tax efficient. its 16% free money. That assumes that it isnt a final salary scheme. In which case the 16% isnt real worth to you but it could still be worth considering.

CLAPTON

if you're paying in 4.5% (well less once you take off tax relief) and your employers pays in 16% its a no brainer.
When you retire you can take 25% tax free ... basically this will return to you at least what you paid in and leaving a small but free income.

equado

Many thanks - I'll go talk to my boss!