Is it normal for small companies not to offer to contribute to a pension?

JoeA81

I have just been offered a promotion at my small (<50 people) company, where I started work at my first "proper" job after graduation. As I will now have more money available I want to start putting some in a pension to take advantage of their tax-efficient status.

I have enquired, and my company offers the minimum required by law - a stakeholder pension, and they do not contribute anything to the pension, all the funds have got to come from my pay.

Is it normal for most small companies to only offer the bare minimum? I ask because the even smaller company (5-6 people) my girlfriend works for, contribute 5% of the value of her salary on top of the 5% she contributes from her own pay, towards her pension pot.

I just wondered if she was especially lucky or I was especially unlucky!

dunstonh

Is it normal for most small companies to only offer the bare minimum?

yes.

However, from 2012 all companies will have to offer the National Pension Savings Scheme (NPSS) or a pension scheme with comparable contributions. Every employee who is not in a equal or higher value pension scheme will be auto-enrolled into the NPSS and find around 4% will be their contribution with their employer and the Govt making up some more.

purch

I don't think my emplyer even offers the 'bare minimum'...:eek: I have never received any details of a Stakeholder or any other scheme.

all the funds have got to come from my pay

......they would come from your pay anyway..whatever the arangement. Employers...small or large only have a certain amount of ££ in the pot for employee salary and benefits !!!

Anyway......personally speaking ( or typing ) working for a small company I would rather they paid me as much as they can so I can make my own arrangements, rather than having to pay me a lesser salary in order to run a
2nd rate pension scheme forced upon them by a Government 'chasing it's own tail' in desperation to solve a problem much of it's own making....