DC Scheme - Company contributions

Mistermeaner

As a manager you got to be careful regards dishing out tax and pension advice to employees - by all means discuss but be cautious as well intended advice can come back to bite you and or your employer (and therefore you)

redpete

Our company (~6000 employees, science & engineering) pays 1.5 X employee contribution up to 10.5% max.

westv

My first DC employer contribution was 20%. The next 18.5%. The following 12% and a potential new one is a mean  9% with 3% extra depending on profit.

cfw1994

westv said:

My first DC employer contribution was 20%. The next 18.5%. The following 12% and a potential new one is a mean  9% with 3% extra depending on profit.

I dream of those contributions!
Mine (big US tech firm) match up to 6%.   I thought that was 'okay', but clearly there are some generous places out there!
My recommendation to younger people (*not* advice, of course!) is to try to stack in at least 15% (including any company contributions), with other savings to ISA/LISA as appropriate....more is always better, but one has to live a life too!!

83705628

First few employers - none - then I got in with a housing association in 2016 just as they had stopped offering the DB, still topped up my 8% with 12% which I thought was decent until I entered the Civil Service.

MrJamez

I work for a contractor to the MOD and my company only match up to 6% too.

Albermarle

Mine (big US tech firm) match up to 6%.   I thought that was 'okay', but clearly there are some generous places out there!

I think US firms tend to be quite stingy about pension contributions , in my experience anyway .

crv1963

Mistermeaner said:

As a manager you got to be careful regards dishing out tax and pension advice to employees - by all means discuss but be cautious as well intended advice can come back to bite you and or your employer (and therefore you)

Absolutely, I only discuss when asked. I think my son asked about his when he mentioned he'd discussed pensions with me and that he wanted to get his sorted. 

JoeCrystal

Well, since the introduction of auto-enrolment, the average contribution rate by the companies has fallen since all employers have to provide a minimum of 3%. Only 44% of private-sector employees with a workplace pension received employer contributions between 2% to 3% with the other 28% getting 4% to 7%. So if your private-sector employer contributes at least 8%, you are pretty much in the top quartile. If you are extraordinary lucky enough to get at least 15%, then you are the top 5% of the private sector employees (in term of employer's pension contribution).

I am somewhat disappointed in the paltry offering of my employer at 3% above the qualifying earning limit. Next time I find a job, pension provision will undoubtedly be one of the main criteria.