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Minimum Contribution

Phlebas99
Phlebas99 Posts: 4 Newbie
My company is suggesting the minimum auto-enrolled pension is 5% (which they will match the 5%).

I can't really afford the full 5%. Do I have the right to go back and ask to give...say...1%, and have them match with 1%?

Comments

  • neilvw
    neilvw Posts: 462 Forumite
    edited 27 August 2016 at 1:05PM
    If the scheme rules have a minimum higher than the statutory minimum, that's what you must pay to be in the scheme. Check with your employer that it is compulsory to pay the 5%.

    A 5% matched contribution is a good deal, however, and opting out would mean losing out on free money. Check what the effect on your take-home pay would be: because of tax relief it may be smaller than you think (even more so if it is done via salary sacrifice as there would be an NI saving too).
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