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

kinger101

housebuyer143 said:

Universities tend to pay the 18% employer contributions. 

Yes.  That's so the postdocs can finance the professor's pensions.

housebuyer143

Kaizen917 said:

wow guys, ive only got around 50k in workplace pots and my family was gonna crucify me when they heard about it, as they are literally at the stance of seeing it as money wasted to either a future hyper-inflation or when WW3 hits.

Im 38, currently at around 30% contributions (18% employer, 12% SSac) but thats fairly recent, gradually stepped up at my current job from the more meagre 8% in the previous ones. Main reason for that is tax efficiency although the fact Im not in a rush to save for something bigger (e.g. car or property deposit) also has influence.

My husband won't contribute anymore (his work do 8% non contributory pension) for the same reason. 
You can really trust the government to in 20 years to not change all the pension tax rules... 

atari_st

housebuyer143 said:

Kaizen917 said:

wow guys, ive only got around 50k in workplace pots and my family was gonna crucify me when they heard about it, as they are literally at the stance of seeing it as money wasted to either a future hyper-inflation or when WW3 hits.

Im 38, currently at around 30% contributions (18% employer, 12% SSac) but thats fairly recent, gradually stepped up at my current job from the more meagre 8% in the previous ones. Main reason for that is tax efficiency although the fact Im not in a rush to save for something bigger (e.g. car or property deposit) also has influence.

My husband won't contribute anymore (his work do 8% non contributory pension) for the same reason. 
You can really trust the government to in 20 years to not change all the pension tax rules... 

That's a great point. I am currently putting money into both a Pension and S&S ISA for that very reason albeit for me personally wouldn't stop pension contributions as salary sacrifice pension payments helps me reduce my tax. My thinking I that I may use the ISA to bridge the gap between retirement age and hedge against future tax rule changes. 

ZeroSum

atari_st said:

housebuyer143 said:

Kaizen917 said:

wow guys, ive only got around 50k in workplace pots and my family was gonna crucify me when they heard about it, as they are literally at the stance of seeing it as money wasted to either a future hyper-inflation or when WW3 hits.

Im 38, currently at around 30% contributions (18% employer, 12% SSac) but thats fairly recent, gradually stepped up at my current job from the more meagre 8% in the previous ones. Main reason for that is tax efficiency although the fact Im not in a rush to save for something bigger (e.g. car or property deposit) also has influence.

My husband won't contribute anymore (his work do 8% non contributory pension) for the same reason. 
You can really trust the government to in 20 years to not change all the pension tax rules... 

That's a great point. I am currently putting money into both a Pension and S&S ISA for that very reason albeit for me personally wouldn't stop pension contributions as salary sacrifice pension payments helps me reduce my tax. My thinking I that I may use the ISA to bridge the gap between retirement age and hedge against future tax rule changes. 

Question probably should've been, how much do you put away for retirement, as I do similar.

I've got a public sector DB pension (which is now in its 3rd incarnation after government meddling)

However, the plan is using S&S ISA to bridge the gap between when I jack in work & state pension. And since you don't need as much when you get into your 70s & 80's as 50s & 60's, just blow it all after about 15 years.

NameWithheld

30% from me. 12% employer. Will retire in 2ish years and my contribution is calculated to avoid higher rate tax.

smithers1981

10% from me employer 12% I’m 41 

Kaizen917

kinger101 said:

housebuyer143 said:

Universities tend to pay the 18% employer contributions. 

Yes.  That's so the postdocs can finance the professor's pensions.

That got me wondering - is there any stats on whats the typical % contribution from employers (maybe by industry or some other criteria)? Seems to vary quite a bit now.

Albermarle

Kaizen917 said:

kinger101 said:

housebuyer143 said:

Universities tend to pay the 18% employer contributions. 

Yes.  That's so the postdocs can finance the professor's pensions.

That got me wondering - is there any stats on whats the typical % contribution from employers (maybe by industry or some other criteria)? Seems to vary quite a bit now.

The main difference is between DB schemes ( mainly public sector nowadays) where the employer contribution has to be in the region of 20 to 30% to fund the scheme, so it can meet its liabilities.

DC schemes can be as low as 3% from employer, or 20% + in some rare cases. No idea what the average is - 5 or 6% % ?

sevenhills

Albermarle said:

The main difference is between DB schemes ( mainly public sector nowadays) where the employer contribution has to be in the region of 20 to 30% to fund the scheme, so it can meet its liabilities.

DC schemes can be as low as 3% from employer, or 20% + in some rare cases. No idea what the average is - 5 or 6% % ?

I don't think the average will be as high as 25%, I believe my local authority put 16% in to my pension.
Perhaps the rate is higher for higher rated jobs, but that wouldn't be fair?

ZeroSum

sevenhills said:

Albermarle said:

The main difference is between DB schemes ( mainly public sector nowadays) where the employer contribution has to be in the region of 20 to 30% to fund the scheme, so it can meet its liabilities.

DC schemes can be as low as 3% from employer, or 20% + in some rare cases. No idea what the average is - 5 or 6% % ?

I don't think the average will be as high as 25%, I believe my local authority put 16% in to my pension.
Perhaps the rate is higher for higher rated jobs, but that wouldn't be fair?

The employer conts are the same rate regardless of salary. Employee conts do increase with higher earners. The one I work for is about 19%

I've seen many of the schools that have converted to academies with 20%+ employer pension conts