MSE Poll: How much do you pay into your pension? 14 March at 10:55AM in MoneySaving polls 13 replies 462 views

MSE_Georgia-May

Poll started 14 March 2023

Pensions are a pot of cash that is put aside to support you later in life when you're no longer working. But according to new data, 12.5 million people are not saving enough into their pension to maintain their current standard of living when they retire. So, we want to know how much you pay into your pension.

Click here to vote in the poll. 

Did you vote? Are you surprised at the results so far? Have your say below.
If you haven't already, join the forum to reply.

Thanks!

Kernowshep

It would have been interesting to see the difference between those contributing to DC vs DB pensions.
(and Salary bands but not sure if as many people would share that).

blanik

Kernowshep said:

It would have been interesting to see the difference between those contributing to DC vs DB pensions.
(and Salary bands but not sure if as many people would share that).

not sure if there are many DB pension still around.

flyingflea

Not sure how relevant this poll will be for those employeed as a lot of the personal contribution will be dependent on what the employer pays.

For example, my employer contributes 20% towards my pension whilst I contribute 0%. If my employer contributed less than I would increase my personal contribution so that the total was closer to 20%.

My partner pays 5% and their employer pays 17% but they'd pay more if their employer paid less.

blanik

over 29% may be distorted - i am semi retired with a low salary, and am recycling funds from an ISA to SIPP for tax purposes. So high percentage contribution but no real new savings.

A_Star

blanik said:

over 29% may be distorted - i am semi retired with a low salary, and am recycling funds from an ISA to SIPP for tax purposes. So high percentage contribution but no real new savings.

I was wondering about that as the numbers seem high for over 29% but it seems to be spread across the age ranges.

equora

I think most school employees (LSAs, support staff, cleaners) pensions are DB pensions.

Kernowshep

blanik said:

Kernowshep said:

It would have been interesting to see the difference between those contributing to DC vs DB pensions.
(and Salary bands but not sure if as many people would share that).

not sure if there are many DB pension still around.

According to the link below there were over 8m active members of DB schemes in March 2021 (7.5m in the public sector). 
https://www.pensionsage.com/pa/Number-of-DB-schemes-and-members-continue-to-shrink.php

More pension data from the 2021 Census is available at the link below.
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/workplacepensions/datalist?filter=datasets

Kernowshep

A_Star said:

blanik said:

over 29% may be distorted - i am semi retired with a low salary, and am recycling funds from an ISA to SIPP for tax purposes. So high percentage contribution but no real new savings.

I was wondering about that as the numbers seem high for over 29% but it seems to be spread across the age ranges.

Other reasons (in additon to the pension recycling above) for a high percentage contribution could be 

1. Avoiding the High Income Child Benefit Charge in the £50-60k band, in addition to the 40% tax and ni savings.

2. 40% tax payers paying in lots, in the last year or two before retirement (if they'll then be basic rate tax payers).

Senseicads

I assumed this included the employers contribution?  I pay in 5% but my employer puts in 15% for a total of 20%.  

Kernowshep

Senseicads said:

I assumed this included the employers contribution?  I pay in 5% but my employer puts in 15% for a total of 20%.  

It stated 
(Please just tell us about your personal contribution, excluding any additional employer contribution.)