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It's me again ( sorry in advance)

elantan
Posts: 21,022 Forumite


Hi all,
well the good news is i have another part time agency type job ( iI will still be keeping my other job on though) this time it's with the NHS ( Scotland to be precise) WOOOOO HOOOOO finally an employer that will make a decent contribution to a pension for me.
This job that I will be doing is going to be around my other job so it will only be about 40 hours a month, I am not going to be relying on this job as an income, I am merely using it to get my foot in the door and to finally get a bit of a decent pension for myself.
With this in mind, I was thinking of AVC's, apparently ( without AVC'S) i will pay 5% for a full time and the equivalent for the 35 hours ( equivalent up the way... cant remember exactly how much but it could go up to say ( for rough speaking) 10% of my wage in order to meet the criteria for their super ann, The company will pay 13.5% ( I got dizzy thinking about that bit)
now as I am not requiring this money to survive I was thinking of putting all my wage into both the super ann and AVC's to hopefully build up a bit of a decent pension.
Firstly is this possible? ( I seem to recall it is but am not 100% sure), secondly would it be worth my while?
I was thinking ( and please correct me if I am wrong here) a very rough kinda working example would be
£10 per hour wage 40 hours worked
£400 paid into the pension via super ann and AVC
13.5% paid in by the employer on top of that
( also no tax or NI paid from wage )
taking my pension payments ( very roughly ) to £440 a month
does that sound about right? have I missed anything? should I think of other things?
Just trying to get some sort of plan organised so that I can tell the payroll dept and finally get some sort of decent workplace pension behind me
thanks everyone
well the good news is i have another part time agency type job ( iI will still be keeping my other job on though) this time it's with the NHS ( Scotland to be precise) WOOOOO HOOOOO finally an employer that will make a decent contribution to a pension for me.
This job that I will be doing is going to be around my other job so it will only be about 40 hours a month, I am not going to be relying on this job as an income, I am merely using it to get my foot in the door and to finally get a bit of a decent pension for myself.
With this in mind, I was thinking of AVC's, apparently ( without AVC'S) i will pay 5% for a full time and the equivalent for the 35 hours ( equivalent up the way... cant remember exactly how much but it could go up to say ( for rough speaking) 10% of my wage in order to meet the criteria for their super ann, The company will pay 13.5% ( I got dizzy thinking about that bit)
now as I am not requiring this money to survive I was thinking of putting all my wage into both the super ann and AVC's to hopefully build up a bit of a decent pension.
Firstly is this possible? ( I seem to recall it is but am not 100% sure), secondly would it be worth my while?
I was thinking ( and please correct me if I am wrong here) a very rough kinda working example would be
£10 per hour wage 40 hours worked
£400 paid into the pension via super ann and AVC
13.5% paid in by the employer on top of that
( also no tax or NI paid from wage )
taking my pension payments ( very roughly ) to £440 a month
does that sound about right? have I missed anything? should I think of other things?
Just trying to get some sort of plan organised so that I can tell the payroll dept and finally get some sort of decent workplace pension behind me
thanks everyone
0
Comments
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Firstly is this possible? ( I seem to recall it is but am not 100% sure),
I believe it is possible but you would need to check with the NHS Scotland scheme. I can't find anything that specifies whether or not there is a limit.secondly would it be worth my while?
For AVCs I don't believe it will be. AVCs are really only of use nowadays if you can take your lump sum directly from the AVC pot and avoid commuting the main pension scheme. The NHS scheme does not allow this so I see no great benefit to using AVCs.
Joining the main scheme is of course a no-brainer.0 -
As could be, buying extra years (non AVC)
and using a PP (will get TR if not employers and will help you not take your TP early)0 -
Thanks Jem and Atush for replying, if the avc's are not going to be worth it would I be better paying the wage into my PP then? I was just thinking if it was taken at source I wouldn't pay NI and tax so more money would go to the pension ( I understand that I will get tax relief in the amount paid into a PP)
Or would I possibly be better just putting it into a S&S ISA say vanguard 80% acc?
Stupidity here but I thought the idea of an AVC was to buy additional years ? As I'm sure that's what my husbands AVC payments went to ( I could be wrong though)
Was thinking if I paid the rest as an AVC maybe for every year I pay in I may buy 1.5 years worth of a pension so thy when I retire I may have a bit of a decent super ann ... Will need to go an. Learn a wee but more obviously
Thanks again0 -
Thanks Jem and Atush for replying, if the avc's are not going to be worth it would I be better paying the wage into my PP then?
Possibly. It all depends on the charges and fund options available.I was just thinking if it was taken at source I wouldn't pay NI and tax so more money would go to the pension ( I understand that I will get tax relief in the amount paid into a PP)
You won't save anything on NI. That's only available on a salary sacrifice scheme which this is not. NI would still be due on the full gross amount. Tax relief would therefore be the same regardless.Or would I possibly be better just putting it into a S&S ISA say vanguard 80% acc?
Again that's also a possibility. Which is better all depends on your tax status in retirement vs your tax status now.Stupidity here but I thought the idea of an AVC was to buy additional years ? As I'm sure that's what my husbands AVC payments went to ( I could be wrong though)
AVCs in different schemes mean different things. In the Public Sector AVCs generally mean the use of a money purchase scheme.
Additional years (or buying back years as it was called) is no longer an option available in the Public Sector pensions unless you had already started paying into one before the changes. What is now available is Additional Pension where you buy an amount of pension up to a maximum of around £5000. Not as good value as the original buying back of years but still a good option for those that want a guaranteed pension amount with no risk to them. However without the added boost of an employer's contribution it is an expensive option but it may well suit you. Main drawback with this is that it's tied to scheme retirement age which will be increasing from 2015 to your state retirement age.Was thinking if I paid the rest as an AVC maybe for every year I pay in I may buy 1.5 years worth of a pension so thy when I retire I may have a bit of a decent super ann ... Will need to go an. Learn a wee but more obviously
Thanks again
I would advise going to the NHS pension website and finding out about the different options available to you. You could also find out how much it would cost you to buy Additional Pension if you feel this is a good option for you.0 -
Thanks Jem. sorry it has taken me so long to get back to you, have been working and preparing for job interviews, will try and understand the pension page, i had a wee look at it whilst i was night shift, but maybe it was night shift brain or something but it didnt make sense, will try again during daylight hours and see if it makes anymore sense
thanks again0
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