We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Pension confusion
FrugalWeirdo83
Posts: 46 Forumite
I pay into a work based ben pal pension and put in 50 quid a month of additional voluntary contributions which I was thinking of increasing but can also see that you can make regular contributions based on a percentage of your 'benefit salary'. Im pretty hopeless at understanding all the jargon but wondered if anyone could tell me if there is a difference and if one is better than the other
Sealed pot challenge 196
0
Comments
-
FrugalWeirdo83 wrote: »I pay into a work based ben pal pension and put in 50 quid a month of additional voluntary contributions which I was thinking of increasing but can also see that you can make regular contributions based on a percentage of your 'benefit salary'. Im pretty hopeless at understanding all the jargon but wondered if anyone could tell me if there is a difference and if one is better than the other
I might be wrong but signing up to put a percentage of your salary means the amount going into your pension increases automatically when your benefit salary (possibly your salary excluding things like bonuses and certain allowances but you'd need to get the definition from work) increases. So you wouldnt need to change the amount as regularly as you would for a fixed figure.Don't listen to me, I'm no expert!0 -
Ah that makes sense Thank youSealed pot challenge 1960
-
I would recommend paying in as much as you can, especially if your employer increases their contributions, after all it's free money!0
-
When I overpaid into my pension I used a percentage basis so every time I had a pay rise the pension contribution also increasedI’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
Save £12k in 2026 Challenge £12000/£1500
365 day 1p Challenge 2026 £667.95/£110
Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php0 -
enthusiasticsaver wrote: »When I overpaid into my pension I used a percentage basis so every time I had a pay rise the pension contribution also increased
I'd something very similar, I'm already at maximum employer contributions so I put mine into the share save and share match schemes.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.4K Banking & Borrowing
- 254.1K Reduce Debt & Boost Income
- 455K Spending & Discounts
- 246.5K Work, Benefits & Business
- 602.8K Mortgages, Homes & Bills
- 178K Life & Family
- 260.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards