Contribute or not

kieronma

My employer has a pension scheme, but it will only match pension contributions to a maximum of 7% of your base salary. Does this mean that it will only pay 7% if you put 7% in. Is there such a scheme where an employee will just contribute to your scheme without a personal contribution. I'm unclear what the UK employee obligations are. It appears that it is a matching obligation vs a straight payment. Any help would be appreciated.

Kind regards


Kieron

MEM62

Unless your employer is unusually generous, they will not contribute to your pension unless you do. 7% is far from the worst offering so why not stick 7% in and get the benefit of what, in effect, is 7% of your salary free from your employer.

Your future self will be very grateful that you did.

Paul_Herring

. Is there such a scheme where an employee will just contribute to your scheme without a personal contribution.

No. Employer contributions (as long as they're above the minimum in the case of auto-enrolement, and even then you're required to contribute) are at the whim of the employer.

As such 'scheme,' in this context isn't actually a thing. You can't find a 'scheme' somewhere, join it and then force your employer to the conditions of that scheme.

To do such a thing, as you're thinking of, you'd have to find an employer wishing to do what you want, and get a job with them instead.

Alexland

Remember you will also get tax relief (and possibly save national insurance if they operate salary sacrifice) on your employee contribution so its usually a really good deal. Treat yourself to a better future.

Alex

hyubh

kieronma wrote: »

My employer has a pension scheme, but it will only match pension contributions to a maximum of 7% of your base salary. Does this mean that it will only pay 7% if you put 7% in. Is there such a scheme where an employee will just contribute to your scheme without a personal contribution. I'm unclear what the UK employee obligations are.

At present, the legal minimum is 2% of qualifying earnings for the employer, and 3% for the employee; in April, this goes up, but only to 3% and 5% respectively. So, an employer contribution of 7% (even if you have to pay in at least 7% yourself to get it) will be well above even the future statutory minimum.

That said, if you want a decent pension on retirement, even a 14% contribution overall may not allow you to achieve that. Decent retirement incomes are expensive, and there's no getting away from the fact.

Terron

Paul_Herring wrote: »

To do such a thing, as you're thinking of, you'd have to find an employer wishing to do what you want, and get a job with them instead.

Also known as working for your own company

kieronma

thanks everyone - very helpful

pramsay13

Previously I worked for a company who would contribute 10% of your salary even without employee contributions.
There were still people who opted out!

swindiff

AKA idiots lol