What % do you pay?

Aachaltomar

Paying 5% and from company getting 8%.

enthusiasticsaver

I retired at 58 and was paying 6.5% into the LGPS along with around 50% of my income going into stocks and shares isas/sipps for the last 5 years of my working life.

DH paid in 10% to a booster pension plan (DB) which then changed to a DC scheme 8 years before retirement. As a sweetener his company put in 20% to his 10% reducing by a percentage each year so at one point 30% of his income was going into his pension and in final year before retirement 22%.

MaxZorin

annabanana82 wrote: »

This year's pension statement suggests based on current earnings I'd have a pension of £42k pa in 31 years time but I with some jiggery pokery I can change this for a fairly decent lump sum.

The Alpha commutation rate is pretty abysmal and is poor value.

Southend1

Age 38, Salary approx £33k

9.6% DB (USS)

1% D.C. via salary sacrifice

8.4% LISA (S&S)

Hoping to retire at 60 with an income of £21k ish

swindiff

Wouldn't you be better off putting the 8.4% into the DC scheme with SS?

swindiff

You would get tax relief and national insurance relief in contributions to the DC scheme so £1 into it only costs you 68p. You would likely get most, if not all of it out tax free as a lump sum when you retire too as it has the benefit of being valued against the DC and DB pensions combined.

Southend1

Yes, but unfortunately my employer only allows salary sacrifice on the 1% that was “the match”. So I figured LISA is a good alternative to give me options at age 60

swindiff

Are you sure? Mine allows SS on all contributions.

Southend1

swindiff wrote: »

Are you sure? Mine allows SS on all contributions.

Yes I have asked twice about it to be sure. The answer was...

“ I can confirm that the salary sacrifice arrangement we have in place allows for the match contributions, which are a maximum of 1% to be processed via salary sacrifice.

While this 1% match contribution can be processed via salary sacrifice and so reduce both your taxable and niable pay, it is not possible for additional contributions above this to be processed via salary sacrifice. Any contributions made above the match will attract tax relief though.“

swindiff

That's a shame and I don't quite understand their position because it saves them money too.