What % of salary do you put in your pension per month and why?

justwhat

approx. 100% last year and 40% this year with 3% employer contributions.  ill do a lump sum deposit at end of year.

Reason being 53 this year so can gain access to it in a few years. And nothing else to do with the money lol 

george4064

retiringtoosoon said:

chucknorris said:

Yorkshire_Dangermouse said:

chucknorris said:

Yorkshire_Dangermouse said:

101%, including employer contributions via salary sacrifice....

101% cannot be correct (are you a sports fan? I am too, but when they say 110% effort, I realise that they are totally non mathematical! The question of this post was what do 'you' (not your employer) put into your salary, I do the same as you do, I invest everything in that I can, but its impossible to invest more than 100%, unless you are a 'sports fan', and even then it is delusional.

Well, my 76% together with employers 25% do come out at....101%.  The OP mentioned their employers contributions, and that through salary sacrifice, so providing directly comparable information....  

Ok, I get it, but you don't, so you a sports fan!

Although he did mention employer contributions, he actually said:What % are you saving (although he meant investing).

You sound fun!

101% could just be reflecting using up previous years' allowance(s), obviously not sustainable year in-year out as you'll run out of carry over allowance.

abz88

24% in total. My employee matches my contribution x2 up to 8% (so they pay in 16%). I've thought about increasing but with a young family and rising costs the money is needed elsewhere! 

Khaderbhai

Wow a lot of people who frequent this forum seem to have generous employers and/or have a lot of spare cash. Don’t think I have ever been employed somewhere where they contribute more than 10% but current employer is 5% with me contributing the same. In the under 40s bracket so not sure if its a newer thing.

It’s an interesting balance, people tend to focus on having a large pot for retirement but do we focus and value that too much? I know people will disagree but you are only young once!

El_Torro

Khaderbhai said:

Wow a lot of people who frequent this forum seem to have generous employers and/or have a lot of spare cash. Don’t think I have ever been employed somewhere where they contribute more than 10% but current employer is 5% with me contributing the same. In the under 40s bracket so not sure if its a newer thing.

It’s an interesting balance, people tend to focus on having a large pot for retirement but do we focus and value that too much? I know people will disagree but you are only young once!

I agree that an employer paying more than 10% is unusual, at least in a DC pension in the private sector. For a DB pension (mostly relevant in the public sector these days) the employer contribution is essentially meaningless, though it is often quoted as a high figure. The only employers I've come across in the past who paid more than 10% in a DC scheme were ones that were winding down their DB pension schemes. 

You're right that it's all about balance. It's bad to retire with too little money to live comfortably on, but I don't see the value either in being the richest person in the cemetery. Remember that some people (especially on this forum) have ambitious plans to retire early, sometimes in their 50s, so a big pot is required to fulfill that ambition. 

Ultimately we all value money differently. If you're spending it because it's there and you don't get any real benefit from spending it then it makes sense to put enough aside to hasten the day when you become financially independent. I don't see the value though in choosing to live like a pauper in your 20s, 30s and 40s so that you can retire at 50. 

noclaf

El_Torro said:

Khaderbhai said:

Wow a lot of people who frequent this forum seem to have generous employers and/or have a lot of spare cash. Don’t think I have ever been employed somewhere where they contribute more than 10% but current employer is 5% with me contributing the same. In the under 40s bracket so not sure if its a newer thing.

It’s an interesting balance, people tend to focus on having a large pot for retirement but do we focus and value that too much? I know people will disagree but you are only young once!

I agree that an employer paying more than 10% is unusual, at least in a DC pension in the private sector. For a DB pension (mostly relevant in the public sector these days) the employer contribution is essentially meaningless, though it is often quoted as a high figure. The only employers I've come across in the past who paid more than 10% in a DC scheme were ones that were winding down their DB pension schemes. 

I would say it is/was more common in some Financial services firms to receive a reasonably generous employer contribution, my last employer was 12.4% and current is 11.5% ( employee must contribute minimum 8%). However these are being reduced for new employees so I do wonder if we will see that as a wider trend...hopefully not. All one can do is fill their boots/DC pots whilst they can.....

TheBanker

noclaf said:

El_Torro said:

Khaderbhai said:

Wow a lot of people who frequent this forum seem to have generous employers and/or have a lot of spare cash. Don’t think I have ever been employed somewhere where they contribute more than 10% but current employer is 5% with me contributing the same. In the under 40s bracket so not sure if its a newer thing.

It’s an interesting balance, people tend to focus on having a large pot for retirement but do we focus and value that too much? I know people will disagree but you are only young once!

I agree that an employer paying more than 10% is unusual, at least in a DC pension in the private sector. For a DB pension (mostly relevant in the public sector these days) the employer contribution is essentially meaningless, though it is often quoted as a high figure. The only employers I've come across in the past who paid more than 10% in a DC scheme were ones that were winding down their DB pension schemes. 

I would say it is/was more common in some Financial services firms to receive a reasonably generous employer contribution, my last employer was 12.4% and current is 11.5% ( employee must contribute minimum 8%). However these are being reduced for new employees so I do wonder if we will see that as a wider trend...hopefully not. All one can do is fill their boots/DC pots whilst they can.....

My FS employer contributes up to 12% (which requires the employee to contribute 8%). This applies to new staff too. In fact, they've just made it more generous for new staff because previously the employer contributions were lower for new joiners, and increased by 1% each year for the first three years, until they reached the maximum. 

I think this is a legacy of a generous DB scheme - when it ended the replacement DC scheme had to be generous. And because this level of contribution is common in the industry, it's difficult for one firm to cut it and still attract/retain staff. I also wonder if there's an element of people working in FS perhaps appreciating the value of employer pension contributions more than the average person?

borderline

0% , I opted out.. I have to pay bills and rent, taking money off my wages on moderate/low income it's not an option

guestman

i was paying in 7.5% as thats all my employer matches upto. but this thread just made me increase it to a whooping 8.5% woohoo .. go me...  but if the current pay rise at work is voted on by the union members then ill bump it upto 10%. 

Zerforax

Currently 5% and matched by employer at 5%.