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Employer won't let me increase my contribution

Shevek
Shevek Posts: 55 Forumite
Part of the Furniture 10 Posts Photogenic Name Dropper
edited 17 July 2024 at 10:34AM in Pensions, annuities & retirement planning
I have recently started working for a new, small company (<15 employees).

I have been enrolled in a Workplace Pension, currently contributing the initial 1%/0.8%/0.2%.

I have requested to increase my contribution but have been told that they do not allow this.

Is that correct, are they allowed to stop me contributing more?

I have googled and read many pages on gov.uk sites but nothing I can find confirms either way.

TIA

Shevek
«1

Comments

  • HappyHarry
    HappyHarry Posts: 1,877 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It’s unusual, but I’m not aware of any rules that say an employer has to let you contribute more.

    Could you not open a personal pension and contribute to that, in addition to the contributions you are making to your employer’s scheme?
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • Shevek
    Shevek Posts: 55 Forumite
    Part of the Furniture 10 Posts Photogenic Name Dropper
    I have a SIPP from my previous employment which I believe I can continue to contribute to.

    AIUI, I would have to make those contributions directly from my bank account, so wouldn't that lose all of the tax benefits of paying directly from my salary?
  • Shevek
    Shevek Posts: 55 Forumite
    Part of the Furniture 10 Posts Photogenic Name Dropper
    Ah, I just logged in to check it and it says:
    all payments made here will be considered individual contributions and basic rate tax relief will be reclaimed
  • LHW99
    LHW99 Posts: 5,566 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    You will get the tax relief in a SIPP, but not any additional employer contributions. However, the employer / employee minimum rates are increasing shortly.
    https://www.nowpensions.com/help-centre/faqs/contributions/what-are-auto-enrolment-contribution-rates
    (This is from Now pensions, but it applies to all the autoenrollment ones.)
  • Shevek
    Shevek Posts: 55 Forumite
    Part of the Furniture 10 Posts Photogenic Name Dropper
    I had seen that before but I still want to pay more than that.

    My last firm had a great pension - I put in 6% and they put in 12% (it's the only thing I miss about working there :rotfl:)

    I would at least like to continue my 6%

    So I guess I will put 5% into my SIPP until April, then drop it to 3% after that.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Shevek wrote: »
    I have recently started working for a new, small company (<15 employees).

    At a guess. From the employers perspective the administration cost is unwarranted. Given the small number of employees.
  • xylophone
    xylophone Posts: 45,908 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Which auto enrolment scheme are you in?
  • Shevek
    Shevek Posts: 55 Forumite
    Part of the Furniture 10 Posts Photogenic Name Dropper
    It is NEST
  • Brynsam
    Brynsam Posts: 3,643 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper Combo Breaker
    Shevek wrote: »
    It is NEST

    Log in to your account with NEST and you can make extra contributions direct.
  • Mnd
    Mnd Posts: 1,699 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    Agreed, I'm with nest and made additional contributions, also my wife is with the people's pension and we pay extra into that as well
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
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