Nest Contributions 10 June at 12:09PM in Pensions, Annuities & Retirement Planning 4 replies 181 views

Tomken

My wage is £378 before stoppages. Employer paid £4.28 and I paid £5.71 to nest pension. I thought sums would be higher based upon the 3% and 5% of salary. I cannot understand the pension even reading everything on the pension site, can someone explain it in simple terms?

Dazed_and_C0nfused

They have probably applied the lower earnings limit where no deduction is required?

https://www.thepensionsregulator.gov.uk/en/employers/new-employers/im-an-employer-who-has-to-provide-a-pension/declare-your-compliance/ongoing-duties-for-employers-/earnings-thresholds

Tomken

Can this be altered to % of total salary? And if so how do I go about it?

norsefox

Tomken said:

Can this be altered to % of total salary? And if so how do I go about it?

You are likely able to change your contributions - either by simply increasing the %, or requesting your HR/payroll teams remove the qualifying lower earnings limit.
Your employer is highly unlikely to adjust their contribution level.
Alternatively, you can make contributions manually online.  However, if you were considering that approach, you might be better advised to open a SIPP, and take full control over non-AE pension contributions.

Marcon

norsefox said:

Tomken said:

Can this be altered to % of total salary? And if so how do I go about it?

You are likely able to change your contributions - either by simply increasing the %, or requesting your HR/payroll teams remove the qualifying lower earnings limit.

The employer may not wanto do this - they may suggest OP arranges extra contributions for themself, which is easy to do:

You can choose to pay more on top of the regular contributions you and your employer make into your pension pot.

By logging in to your account, you can:

• make a single one-off contribution
• set up regular additional contributions to be collected by Direct Debit

See https://www.nestpensions.org.uk/schemeweb/nest/my-nest-pension/contributions-and-fees.html

Tomken said:

My wage is £378 before stoppages. Employer paid £4.28 and I paid £5.71 to nest pension. I thought sums would be higher based upon the 3% and 5% of salary. I cannot understand the pension even reading everything on the pension site, can someone explain it in simple terms?

If you're still bemused by this, there's a good explanation under the employer section on NEST:

https://www.nestpensions.org.uk/schemeweb/nest/employers/get-ready-for-auto-enrolment/contributions.html