Second Job Pension

pollyanna24

I have taken on a part time job and they have put me in the pension scheme.

Because I am paying tax on whole amount of my wages due to my first job, would I be better off maximising the amount I put in my pension (I think they let you put up to 10%)?  It seems like a no brainer if they match the amount, but I was wondering if there were any downsides to doing this (besides receiving a little less in my pay each month)?

El_Torro

Regardless of how many jobs you have it makes sense to pay a sensible amount into your pension(s). 

For both employers it makes sense to put in as much as your employer will match. Once you have reached the maximum contribution from your employer you may want to put in more, depends on your circumstances. 

Bear in mind that there are limits to how much you can put in your pensions every year. As long as you’re not hitting this you should be fine. 

I wouldn’t worry too much about how much tax you’re paying at each job. In the end it should all balance out (if not then you might have to contact HMRC). So I wouldn’t necessarily pay more into your pension at job 2 rather than job 1. 

pollyanna24

Thank you.

The second job pays a lot less than job 1 which is my main job.  I got job 2 because, well, why not?  

I think I will look into maximising pension contributions in job 2. 

Linton

pollyanna24 said:

Thank you.

The second job pays a lot less than job 1 which is my main job.  I got job 2 because, well, why not?  

I think I will look into maximising pension contributions in job 2. 

You should check whether one of the pensions has any particular advantages over the other - eg lower fees or better choice of investments.

Albermarle

pollyanna24 said:

Thank you.

The second job pays a lot less than job 1 which is my main job.  I got job 2 because, well, why not?  

I think I will look into maximising pension contributions in job 2. 

If both employers are paying in, make sure you pay in enough to get max employer contributions from both.

pollyanna24

Thanks again.

Must admit, hadn't thought any further than how much to pay in.  Didn't realise there were other benefits or disadvantages to be had re pensions.

The first is a Nest pension and I believe it's the minimum that my boss has to do by law.  So me 5% and him 3%.  Not sure how to go about asking to make more contributions.

The second is a Pace pension and I've just upped my contribution to 10% as it was an option when I logged in online.

Albermarle

The first is a Nest pension and I believe it's the minimum that my boss has to do by law.  So me 5% and him 3%.  Not sure how to go about asking to make more contributions.

Normally you just ask the employer payroll dept to increase your contributions. The disadvantage with Nest is that they take 1.8% from each contribution, whilst other providers normally take nothing. On the other side the ongoing charge for Nest of 0.3% is rather low.

I am not familiar with Pace pensions, so do not know what their charges are.