Pension question

emeraldemma

Hi,

Just wondered if anyone can help

I currently have a government work place pension with NEST. With 1% put in by myself and my employer. I see on the pension advice section it is advised to put into the pension a % of half the gross salary per year based on when the pension starts, and this includes employers contributions. Does my employer have to agree to increase the contributions if I ask them to? As I need to be paying in more than what I am currently.

Thanks

Linton

Employers can pay in whatever they want at or above a minimum level, they are unlikely to pay more just because you ask them.. The current minimum level is 1% but will be going up over the next few years - see: https://www.gov.uk/workplace-pensions/what-you-your-employer-and-the-government-pay.

You could put more into the NEST pension or set up your own private pension.

dunstonh

I currently have a government work place pension with NEST

It is not a Government Scheme. The Govt set the rules on auto enrolment but the employer chooses the pension provider from the marketplace.

I see on the pension advice section it is advised to put into the pension a % of half the gross salary per year based on when the pension starts, and this includes employers contributions.

It is not an accurate guide. For some it will be too much. For some it will not be enough. The old half your age rule was to encourage people to undrestand the sort of ballpark their contribution should be. i.e. stop them paying in £20pm into a pension and ticking the "pension done" box and thinking that they will get £2000pm in retirement.

Does my employer have to agree to increase the contributions if I ask them to?

Depends on what you mean with that question. Most money purchase workplace schemes will allow you to increase your contribution. However, your employer is not required to increase their contribution.