Pension contributions in an IVA

Max_Maxwell

On entering an IVA I had no pension provision. Since then I've changed jobs and with a salary increase was able to increase my repayments by 50%.

In the last year my salary has increased again along with my employer introducing a pension scheme (by law) to which the employee is strongly encouraged to contribute. The employer must make a contribution which is currently set at 2%. We are all aware that the state pension will be a withering pot of pennies by the time my generation hits retirement so we must find a way of providing for our autumn years.

So given the opportunity it made sense to join my employer's scheme. I am contributing 5% of net salary, which is far from sufficient to provide for my retirement but it's a start.

I understand that I am entitled to contribute to a pension whilst in an IVA although there may be limitations. The information I've found suggests that a private pension would probably not be permitted, with caveats depending on proximity of current age to retirement, but that an employer's pension scheme is viewed differently and contributions generally permitted.

I have my annual I&E review coming up next month so need to start working on this in good time, but it's the area of the pension I'm unsure about. Reading Internet articles is one thing, seeking guidance from the wealth of experienced people here is another, and I'm looking to my learned friends for guidance please.

I should add that even with my new pension contribution and increased expenditure, I will still be demonstrating the ability to increase my monthly repayments at I&E review. It's not my intention to offset all my salary increase with the pension scheme.

I look forward to your advice.

Gimpsdad

The key is communication, as ever. I very much doubt that you will have any problem whatsoever with what you are doing, especially given the circumstances you describe, however a call to your supervisor to put your mind at rest looks well in order to me.