Setting up my own workplace pension - I haven't got a clue :(

Fay_elizabeth

Hello all!

I work for a small private therapy clinic as a receptionist and secretary. I am their only employee. Recently my boss has asked me to set up a workplace pension for myself as I know its going to be compulsory soon. He asked me to do it all myself - research schemes, choose the best for the company etc - I decided to go with wellplan as they had less upfront fee's for my employer (which he wanted.)

I feel a bit out of my depth here - I have no idea about pensions and tax, all I know is that I don't earn very much so I am not keen to pay too much into it.

There are all these categories for how much you want to contribute and I have no idea which is best. It seems you can either choose qualifying earnings, basic pay, pensionable earnings or total earnings. Can anyone explain these to me in human terms? :eek:

help!

jobbingmusician

I'm no expert but I had to set up a workplace scheme for my small charity's employees. We (the trustees and I) did lots of research and the People's Pension came out a clear leader. They have lots of informative videos and stuff on their site. (I wouldn't be able to start in categorising those 4 earnings categories you have named!)

You may not be keen to pay that much into it but you are turning down free money from your employer if you don't put the amount in which they will match. However, it is possible to contract out totally if you really don't want to put anything in, IIRC.

PS Your employer doesn't have to offer you a pension if you earn less than £10k odd. Still worth taking one if THEY are going to pay into it!

Fay_elizabeth

Thank you!

I think its too late to change now as we're almost totally set up. I want to pay in, but I want to keep it low as I have trouble paying all my bills as it is. I earn around 15k.

jobbingmusician

OK, well you might find this page useful. https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/automatic-enrolment/how-much-do-i-and-my-employer-have-to-pay

Kynthia

The pensions board in this forum may be able to help you. Work pensions are very tax efficient ways of saving for your retirement eith free money added on top. As a basic rate tax payer you give up £80 of your take home pay and £100 Is put into your pension, then your employer puts in another £100. So £80 gets you £200 and this works up to the matching limit of your employer.