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Pension help

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I have a defined contribution pension with the company that I work for. I currently pay 8% and the company pays 14% which is the maximum it offers.
Can I change the 8% and are there limits? What are the rules regarding how much you can contribute?
Can you make personal one-off contributions to your workplace pension? What are the rules for this?
Also how do personal contributions affect how much you get when you take retirement? 
Thanks
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  • dunstonhdunstonh Forumite
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    Can I change the 8% and are there limits? 

    Technically yes you can go above the 8%.  However, it is up the scheme rules if they allow it.   Limits would be to 100% of your salary (including employer contribution;  to get tax relief).    However, if it is a salary sacrifice scheme, the limit with that particular pension would be lower.

    What are the rules regarding how much you can contribute?

    Google is your friend. 

    Can you make personal one-off contributions to your workplace pension?

    If the scheme allows it.

    What are the rules for this?

    There are no "rules".

    Also how do personal contributions affect how much you get when you take retirement? 

    The more you pay in. The more you get out.     If you put an extra £10,000 in then your fund will be an extra £10,000 higher than had you not paid it in.   Investment returns on a higher amount will give you more.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • SumselkbSumselkb Forumite
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    dunstonh said:
    Can I change the 8% and are there limits? 

    Technically yes you can go above the 8%.  However, it is up the scheme rules if they allow it.   Limits would be to 100% of your salary (including employer contribution;  to get tax relief).    However, if it is a salary sacrifice scheme, the limit with that particular pension would be lower.

    What are the rules regarding how much you can contribute?

    Google is your friend. 

    Can you make personal one-off contributions to your workplace pension?

    If the scheme allows it.

    What are the rules for this?

    There are no "rules".

    Also how do personal contributions affect how much you get when you take retirement? 

    The more you pay in. The more you get out.     If you put an extra £10,000 in then your fund will be an extra £10,000 higher than had you not paid it in.   Investment returns on a higher amount will give you more.

    Thanks.
  • AlbermarleAlbermarle Forumite
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    Can you make personal one-off contributions to your workplace pension? What are the rules for this?

    If your employer operates a salary sacrifice scheme for pension contributions , you are better off to increase your 8% regular contribution , rather than adding ad hoc lump sums . 

    If for some reason you are not allowed to increase or add lump sums , there is nothing to stop you opening a new separate pension instead. Or if you have a similar pension from a previous job you could add to that .

    There is no limit to the number of pensions you can have running . There are no tax or specific financial advantages to having multiple pensions but it can be of benefit in certain circumstances. 

  • 8370562883705628 Forumite
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    You can opt to pay more, ask hr or payroll or your organisation's pension administrator.
    The only rule is that you can't/shouldnt pay more than £40k in, in total, per year. That's your 8% + the company's 14% + any tax relief or NI relief + your extra contribution + any tax and NI relief on your extra contribution. 
    This information won't be on  your payslips but it may be on your pension statement or online.
    Again either your company's payroll or pension administrator or hr should be able to help you get this information. They or the pension scheme will be able to tell you about making one-off contributions.
    The only effect that paying more in, has on how much you might get when you retire, is that you will have have more. Thats it. If you want a projection of how extra contributions might grow, the pension scheme may provide you with that.
  • BrynsamBrynsam Forumite
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    Have you tried reading the scheme booklet, or the pension provider's website? All your questions are likely to be covered there and you might also pick up some other helpful snippets of information as you browse.
  • LHW99LHW99 Forumite
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    They might be an AVC scheme that you could use if the 8% can't be increased. As Brysam says, look in the scheme booklet (or online)
  • SumselkbSumselkb Forumite
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    I have logged onto my account and read the member booklet. It says that I have a Trust based occupational scheme which has a money purchase or defined contribution section. It says that I can change my Member Contributions at any time by completing an online Change of Contributions form. I have also requested a benefit statement. So when I get that I will see where I'm at and will take it from there. Thanks for the help.
  • 8370562883705628 Forumite
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    Sumselkb said:
    I have logged onto my account and read the member booklet. It says that I have a Trust based occupational scheme which has a money purchase or defined contribution section. It says that I can change my Member Contributions at any time by completing an online Change of Contributions form. I have also requested a benefit statement. So when I get that I will see where I'm at and will take it from there. Thanks for the help.
    If you want some information in plain English you could always try calling them or messaging them with exactly these questions, or your employer's pension admin/HR/payroll for more info. Most employers should give you some sort of presentation or information about the pension scheme when you join the employer, So if you didn't get that you could request that information again i.e. "hi hr, do you have a copy of the information you would have given me about the pension scheme when I joined, thanks". An interactive conversation with a human being whos job it is to know this information may be a quicker way to help  you understand what you need to understand.
    Once you have that I'm sure if you posted again with a summary of your options, you'll get some interesting opinions on here 😅
  • cloud_dogcloud_dog Forumite
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    You can opt to pay more, ask hr or payroll or your organisation's pension administrator.
    The only rule is that you can't/shouldnt pay more than £40k in, in total, per year. That's your 8% + the company's 14% + any tax relief or NI relief + your extra contribution + any tax and NI relief on your extra contribution. 

    Are you really sure about this?

    It might be worth you investigating pension contribution limits before stating something equivocally as fact. 
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • edited 13 July at 9:03AM
    cloud_dogcloud_dog Forumite
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    edited 13 July at 9:03AM
    Sumselkb said:
    I have a defined contribution pension with the company that I work for. I currently pay 8% and the company pays 14% which is the maximum it offers.
    Can I change the 8% and are there limits? What are the rules regarding how much you can contribute?
    Can you make personal one-off contributions to your workplace pension? What are the rules for this?
    Also how do personal contributions affect how much you get when you take retirement? 
    Thanks
    Hi

    Lets take a step back firstly.

    Are you a higher rate tax payer?

    Can you confirm if you benefit from Salary Sacrifice?

    You should contact you HR or payroll department regarding the SS question, and the scheme administrators regarding any pension
     related queries.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
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