What is a ‘good’ company contribution on DC scheme

dunstonh

I once had a 15% employer contribution for some years. Although my first job had a non-contributory DB scheme (worth around 35% of my earnings if you had to put a cost on it).

Filo25

Mine only matches employee contributions up to 5%

westv

dunstonh wrote: »

I once had a 15% employer contribution for some years. Although my first job had a non-contributory DB scheme (worth around 35% of my earnings if you had to put a cost on it).

My first job had a DB scheme but it didn't start until you were 25 so, whilst I got 9 years of 1/60, I missed out on another 9 years prior to that.

kidmugsy

A 30-something in my family can contribute up to 5% and gets it double-matched up to 10%. That's on base salary and bonus. It's done by salary sacrifice.

sandsy

dunstonh wrote: »

I once had a 15% employer contribution for some years. Although my first job had a non-contributory DB scheme (worth around 35% of my earnings if you had to put a cost on it).

I had a non-contributory DB for my first 10 years of employment too.

My employer currently pays 15% - made up of 12% base plus 3% matched, plus half the NI savings via salary sacrifice. But younger staff have a lower base.

Notfarfromtheborder

9% base with no contribution
extra 2% matched
All by SS, all NI returned on sacrificed amount


Worth about £10K into the pension from the above amounts alone

Novice_investor101

My old employer matched up to 7.5%. they had a DB scheme that I was in for 10 years that closed. My current employer pays in 14% to my 8%. That's the highest matching amount, it goes down on a sliding scale if I reduce my contributions. Current all via sal sac.

Shimrod

Here's some more figures on contribution rates by sector. These are from 2009, so bear in mind the averages have dropped since auto-enrolment came in. This is from the 2009 Aon Benefits and Trends survey.



Key findings:
Average total contribution across UK sectors is 9.7%.


Average employer contributions across the UK are currently 6.2% of an employee!!!8217;s salary


Those in financial services fare best with a combined pension pot of 11% (a 8.4% employer contribution but only 2.6% employee).


Those in leisure and travel are worst off with a combined pension pot of 7% (a 4.1% employer contribution and 2.9% employee).


Employers across all sectors contribute at least 4%.


The retail sector displays the least disparity between employer and employee contributions. 4.3% and 4% respectively.

TcpnT

Before I I retired last year my company doubled employee contributions up to 8%. So for an 8% employee contribution they contributed 16% - total 24% of all salary and bonuses. This was a very generous scheme but it was with a major international oil service company and their scheme was intended to offer similar benefits to the major oil companies.
I also benefited from some legacy terms which were no longer on offer to new employees. Contributions were the same for recent starters but were paid on base salary only which was a massive difference.

Brynsam

Don't forget to set this in the context of the overall remuneration package. A 'mean'(!) employer contribution of 'only' x% might look better if there's a bonus which is regularly in the order of 50% of salary, say... There's nothing magic about remuneration being paid as a pension contribution, albeit there are tax advantages.