New job - 3% contribution vs 10% previously

Malthusian

westv said:

3% does seem very mean.

Depends on the rest of the package.

An employer offering up to 10% employer matching is saving themselves 10% off the cost of employing all the employees who go "I'm opting out, pensions are a con wheeee". Which will be a significant number of them in a large company.

Sensible employees who would pay the maximum 10% are probably also sensible enough to assess the full value of the remuneration package. Which means there is no extra cost involved in paying 10% matched contributions to them, as if it was lower they'd demand higher salaries.

p00hsticks

Motherofcelticdragons said:

I doubt its quite as straight forward as saying 'I need 7% more than I currently earn to compensation for this' because the lose will be compounded over the years... I think?? (I could be wrong... i haven't really paid any attention to pensions before!)

You're overthinking it, I think.

If you ask for an extra 7% (the actual figure might need to be slightly higher if you want to take account of deductions such as NI etc before it reaches you) and then stick it directly into a pension yourself you'll be no better or worse off than if your employer put 10% in, assuming you pick the same funds. You might even be able to put the extra straight into the employers scheme without the need to set up a separate one yourself.

The problem would come if you don'l have the disciplne to do that but treat it as extra salary and jsut spend it.

steampowered

They likely pay 3% because that is the auto enrolment minimum (5% employee contribution, 3% employer contribution).

In the new job you could opt to increase your pension contributions by salary sacrifice, so that the same amount of money goes into your pension each month as it does currently.

Seeing the additional 7% pension contributions as being equivalent to a 7% pay rise, is a good way of looking at it. 

Chewbecca

Do check exactly what they are paying 3% on. As a pp says, they don’t have to pay below a threshold but also do not have to pay above a threshold.

I would want at least 15% rise to compensate and be disciplined putting the extra into a pension.

josecc

What do people think is a good percentage for your company to pay in? Mines matches to 8% which I don't think is great but it's not the worst either 

eastcorkram

I'd be happy if employer matched my 22%. 
Reality is they do 3%.

Prism

Mine is a 4% match but it honestly doesn't matter if the overall package is decent. When I was self employed I was on a 0% company contribution and when I ran a limited company it was 200%. It doesn't really make much difference in the end if you get salary or pension.

2nd_time_buyer

Prism said:

Mine is a 4% match but it honestly doesn't matter if the overall package is decent. When I was self employed I was on a 0% company contribution and when I ran a limited company it was 200%. It doesn't really make much difference in the end if you get salary or pension.

I think you are right. The private sector attracts people with the salary. The public salary prevents people leaving with the pension.

SouthCoastBoy

2nd_time_buyer said:

Prism said:

Mine is a 4% match but it honestly doesn't matter if the overall package is decent. When I was self employed I was on a 0% company contribution and when I ran a limited company it was 200%. It doesn't really make much difference in the end if you get salary or pension.

I think you are right. The private sector attracts people with the salary. The public salary stops people leaving with the pension.

I'm not sure why many people think private sector pay is more attractive than public sector pay? Where i live most of the highest paying jobs are in the public sector.

Private sector is mainly min wage or just above.

2nd_time_buyer

SouthCoastBoy said:

2nd_time_buyer said:

Prism said:

Mine is a 4% match but it honestly doesn't matter if the overall package is decent. When I was self employed I was on a 0% company contribution and when I ran a limited company it was 200%. It doesn't really make much difference in the end if you get salary or pension.

I think you are right. The private sector attracts people with the salary. The public salary stops people leaving with the pension.

I'm not sure why many people think private sector pay is more attractive than public sector pay? Where i live most of the highest paying jobs are in the public sector.

Private sector is mainly min wage or just above.

Apologies - that was just a glib generalisation.