little advice needed please x

bhafc810

hi

my employer is cutting my wages by £300 take home per month

I pay into a company pension of 11% and my employer pays in 16% , I can reduce this to 8% . This is a final salary pension

as my wages are going to be cut I cant afford to pay my pension


from November I can go to this workplace pension, do I contribute or does my employer only contribute ?

ANy advice would be great

Thanks
Sue

xylophone

This is a final salary pension

And therefore a valuable benefit.

Even if you have to reduce your contributions, continue to pay into it.

Is there any chance of some evening/weekend work to make up the shortfall in your income?

xylophone

And does your employer offer salary sacrifice?

http://www.out-law.com/page-10285

bhafc810

thanks for your advice, very helpful

Many thanks
sue

redbuzzard

Is your employer reducing your contribution to 8% and maintaining your benefits? (I mean in relation to your earnings - lower pay will mean lower pension £ anyway)

I'm not sure what you mean by workplace pension - if you mean the minimum auto enrolment requirement, then I think the starting level ia 1% + 1% - cheap, but useless. And it won't be final salary either.

Sympathy, but try to find a way to stay in the FS pension if you have that option. If you lose it, you'll have had an even bigger cut in your reward, even though you have more money in your pocket.

bhafc810

redbuzzard wrote: »

Is your employer reducing your contribution to 8% and maintaining your benefits?

I can reduce from 11% to 8% and keep benefits - so I think this would be a good option for the time being

thanks

dunstonh

I pay into a company pension of 11% and my employer pays in 16% , I can reduce this to 8% . This is a final salary pension

If it is a conventional final salary scheme, the amount you pay would be fixed. no more, no less. The fact you say you can opt to pay less suggests it may not be a conventional final salary scheme. The amount the employer pays is irrelevant.

Is the employer reducing it to 8% but giving the option for more?