What is a ‘good’ company contribution on DC scheme

si2winit

Hi everyone

My company is going through a pensions review at the moment. I’m also attending some sessions with my HR director to discuss it.

Currently if I pay 5% the company pays in 10% rising to 12% after 15 years contributions and 14% after 25 years.

Looking to gauge where this is relating to other pensions. So if you are comfortable please drop a note of your company contribution percentage on DC schemes.

Thanks in advance

westv

Mine have been 20% + 5% minimum employee contribution and 18.5% with no minimum employee contribution.

tacpot12

My employer contributed 13.5% if I contributed 10%, I thought that was very good at the time.

Zorillo

My current employer contributes 6%, which I consider to be poor.

My previous employer contributed 14%. I'm lucky that the difference in salary allows me to make up the difference in pension contributions without hardship.

campbell19925

I work for a pension company as an adviser and the company puts in 2%! So you should all count yourselves lucky!!

steampowered

That sounds extremely generous.

Mine pays in a fixed 5%. My previous job matched contributions up to 6%. Both were professional jobs in central London.

I thought most companies just paid the legal minimum - currently an employer contribution of 2%, going up to 3% next year, based on staff contributing 3% now and 5% next year.

Bimbly

Company agrees to match contributions up to a maximum of 10%.

(Not sure what the minimum is).

si2winit

I need to get a job where you work!! Thanks for the response.

si2winit

Thanks everyone, a bit of a mixed bag.

westv

Some really mean contributions in there.

Shimrod

From the FT: https://www.ft.com/content/e88d7192-790a-11e7-a3e8-60495fe6ca71


In 2012:

The amount going into money purchase schemes (now known as defined contribution or DC) was about half this rate in 2012. The 9.7 per cent total was split about 2:1 between employer and member (6.6 per cent to 3.1 per cent).



With the introduction of auto-enrollment:

By 2015 the average total going into DC schemes was 4 per cent of pay, split roughly 2.5 per cent by employers and 1.5 per cent by members.



I would generally count an employer contribution 10% and upwards as generous (and that's more than I get)