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Am I paying too much?
The_Professor_
Posts: 11 Forumite
I am paying 25% of my 30k salary into my 1/60th CARE DB scheme. This is just what I put in. My employer adds roughly 12.5%.
Is 25% of my salary worth 1/60th? I’m 37 years old if that helps
Thanks!
Thanks!
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Comments
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Also to add I have salary sacrifice which may make a difference0
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DB schemes are expensive to fund, although 37.5% altogether seems on the high side.
Normally the employer usually bears the brunt of contributing rather than the employee, so your employee % is very high. Can you say what scheme it is, who the employer is?0 -
Well, that is certainly one of the highest contribution rate for employee I seen. Is there anything unusual about the scheme like protected retirement age? Is it uncapped inflation link as well maybe? Any death in service benefits and so on? You haven't really given us enough information at all to work the answer out.
It may be very cheap what you are paying for or very expensive. But ultimately it is what you really want in the end. I wouldn't mind in my case if I can afford it.0 -
My employer is a large housing association. And the pension provider I assume is TPT0
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Sorry guys it’s 20% not 25%. Sorry!
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It’s the Social Housing Pension Scheme (SHPS)0
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OK but it is still a lot.The_Professor_ said:Sorry guys it’s 20% not 25%. Sorry!
What happens if you say you can not afford/want to opt out? I guess quite a few people would be in that position?
Is there a choice to pay less, into this, or maybe into a different type of pension?
( I see from the website they also offer a DC pension, so I have probably partly answered my own question !)0 -
I can go down to 1/80th or 1/120th or a DC scheme.0
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I can afford it if it’s going to pay well in retirement. I have a separate SIPP I pay into and also income from BTL.0
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Are you certain on those percentages and they are the right way round ? SHPS seems to be normally between 5 and 7 % employee contribution not 25%.
Are you also including a AVC into that percentage perhaps ?0
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