What is a ‘good’ company contribution on DC scheme

ex-pat_scot

I've seen many schemes over the years.
Most are sal sacrifice.
The average for Financial services/ professional services firms on DC seemed to be around 10% matched.
The professional services firms were a little lower- 8% max matched.

MallyGirl

Mine is by sal sac on a sliding (but weirdly non linear) scale.

If I contribute 2% they do 4%
me 3% them 7%
me 4% them 8%
me 5% them 10%

No matching beyond my 5% contribution (I actually do 40%) and they don't give me their NI saving.

Mothman

My employer had a non contributory final salary scheme, but they closed this in 1991 and replaced it with a DC scheme to which they contributed 2.5% to my 7.5%. They even had some whizz kid FA at the one to one meetings giving us the speil about how great it was.

I didn't understand pensions at the time and it was another 22yrs before I realised that it wasn't the greatest deal and my future retirement prospects were in serious trouble. For the last 5yrs I've been putting 40% of salary into other Personal Pensions & ISA's in an effort to undo some of the damage.

somethingcorporate

employer 10% for 5% of mine. I am currently contributing 19% myself (looking to bring this down...).

swindiff

I pay 25% into MY DC Scheme and my employer pays 1%

But they do pay 18% into my DB Scheme compared to my 8%

Thrugelmir

si2winit wrote: »

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

What's the likelihood of being in the same employment?

JoeCrystal

My employer contribute only 3% into my workplace pension pot (without salary sacrifice) which is clearly insufficient (I decide to contribute minimum 3% since I got tax relief issues with it). Overall, I personally contribute 13% into my private pension with overall goal of 25% of my salary throughout the year (via making single lump payment). It does really hurts to contribute that much but that is the price of aiming to get a good retirement!

I much rather see matched contribution up to 12.5% by my employer instead.

choccielover

Old scheme 5 if employee paid 3 but close about 3 years ago and now only auto enrolment scheme so 3 to employees 2

First one was sal sacrifice but no saving was passed on.

Some of these company contributions are fantastic!!

JoeEngland

si2winit wrote: »

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

One of my previous employers paid somewhere between 8% and 10% IIRC with an employee contribution of 4% which could be increased. I thought that was quite good, and my current employer will match contributions up to 10% so I pay that giving 20% in total. Basically any employer contribution is free money.

badmemory

And no-one admitting to be in a scheme that the employer doesn't pay pension contributions on the first (no NI payable) part of their income. Now that really is low.