Stakeholder Pension & salary sacrifice

Upwind

Just some advice/confirmation if I can. Having read through some of the threads on here, can I take it as read that it would be sensible to match my new employers pension contributions (with salary sacrifice) when starting in our company scheme?

Company are only offering 6%, but it seems to me (unless I am missing something) that I should match this - if only for the tax and NI benefits available. Am I right?

dunstonh

can I take it as read that it would be sensible to match my new employers pension contributions (with salary sacrifice) when starting in our company scheme?

You should pay what you need to pay to hit your objective income. If that happens to be 6% then thats fine. However, it is not enough if you need to pay more though.

The advice is that at a minimum you should ensure you get the most from the employer. e.g. some employers will pay 3% if you pay 3% but they will pay 5% if you pay 5% and so on. So, matching as much as possible in those cases is best. However, it does not mean that matching will be enough in its own right.

Upwind

Thanks dunstonh.

I've recently left the military, so have never and had to deal with sorting my own pension requirements.

I think that I shall contribute what the company are prepared to match - currently 6%, as this appears to offer the best reward. I do already have several ISA's and I've saved hard over the years, so that I am now mortgage free. I'm not overly confident in company pension plans, so I may look to invest in other areas (long term) to bolster my retirement needs.

I appreciate your advice.

ffacoffipawb

dunstonh wrote: »

You should pay what you need to pay to hit your objective income. If that happens to be 6% then thats fine. However, it is not enough if you need to pay more though.

The advice is that at a minimum you should ensure you get the most from the employer. e.g. some employers will pay 3% if you pay 3% but they will pay 5% if you pay 5% and so on. So, matching as much as possible in those cases is best. However, it does not mean that matching will be enough in its own right.

Welcome back, you were much missed.

Lokolo

ffacoffipawb wrote: »

Welcome back, you were much missed.

Seconded. blah