Company Pension Scheme Pitfalls?

WeB

Morning All,

I’m changing jobs and the new company is offering a much higher pension contribution compared to the old one.

The old company matches up to 3% (so if I pay 3%, they will pay in 3% as well).

The new company will put in 14% if I put in 8%. It seems quite good. I’m just worried I might be missing something here. I can choose to pay in less as well. Just looking for some advice on whether I should go for the highest possible amount and get some advice on whether there would be any implications.

Thanks,

B

atush

What you are missing is, to grab it with both hands and join immediately. That is a very good employers contribution.

I would definitely put in enough to get the 14%, the only proviso being that you arent in high interest debt, and have some emergency cash reserves.

I would also look to using your S&S isa allowance if you find you hve spare income in future.

dunstonh

The new company will put in 14% if I put in 8%. It seems quite good.

That is an excellent contribution if it is a money purchase scheme.

I can choose to pay in less as well.

But would the "free money" be reduced if you did?
How would that impact on your retirement planning?

PeacefulWaters

Get the maximum out of the employer.

Then consider paying more.

Never aim to get less than the maximum the employer will pay.

LHW99

The only reason not to might be if you are very close to the lifetime allowance, otherwise grab it quick.