Reduce work pension contribution

avfc82

Hi,

I currently pay 5% to my pension at work. Is it possible to reduce this to 3% and then go back to 5% again at a later date?

Thanks

PeacefulWaters

Almost certainly.

Ask your employer.

But it may mean you get lower matching contributions, so could prove to be a very expensive way to "save" money.

jem16

avfc82 wrote: »

Hi,

I currently pay 5% to my pension at work. Is it possible to reduce this to 3% and then go back to 5% again at a later date?

Thanks

That depends on the type of pension it is. If it is a Defined Benefit pension, the answer is more than likely to be no.

avfc82

jem16 wrote: »

That depends on the type of pension it is. If it is a Defined Benefit pension, the answer is more than likely to be no.

How would I know if it's a "Defined Benefit pension"?

kangoora

avfc82 wrote: »

How would I know if it's a "Defined Benefit pension"?

Often referred to as 'Final Salary' pensions. If your pension on retirement is based upon your salary x (times) the amount of years you worked for the company then it is a Defined Benefit pension

Or you could just ask your HR, payroll or pension company the same question

atush

I'd carefully before doing this, even if you can. AS usually people always have a better reason not to increase again. Or just forget to.

If you lose employers contributions it is a Hugely Bad idea.

5% of your salary after tax relief isn't very big so you wont save that as your contributions would then have tax and NI taken off.

Better to economize elsewhere first- have you done a spending diary? Many people waste a lot w/o knowing it. such as 80-100 a month on fancy coffees, or over 100 buying sandwiches.

Have you MSE'd all your other outgoings? Such as insurance, utilities, phones etc?