Good package but pension issues

Grumpy_chap

Duplicate thread:
https://forums.moneysavingexpert.com/discussion/6449141/work-pension-advice#latest

sultan123

Grumpy_chap said:

With a package of this size, it is worth investing in professional financial advice to make the decisions around pension etc.

It is quite likely that the Employer will only make contributions (employer and employee SS) into the one scheme they are set up to work with - Scottish Widows.  That is not uncommon.

Why not make the maximum contributions that are permitted to the employer's scheme and then make partial transfer out to whichever SIPP you have in place for your long term financial planning?  Transfer most of the balance periodically to your SIPP but leaving enough such that the scheme remains open for ongoing contributions.  You will need to check the scheme rules permit this and any fees, but I would expect it is permitted and also that there would be no / negligible charge for the partial transfer out.

Given you will only have small sums in the Scottish Widows pension, any internet concerns you may have read wherever are unlikely to impact you.  Again, your professional financial advisor may be able to put any concern you have read into proper context.

With regard to the second question about variations in nett pay, the online tools tend to be sufficiently accurate for most practical purposes, but there are some recent and in depth discussions that the OP may find worth reviewing:
https://forums.moneysavingexpert.com/discussion/6334450/net-salary-difference/p1
https://forums.moneysavingexpert.com/discussion/6361318/annual-pay-difference/p1

Thanks this is good advice except if SW do now allow transfers. Even though I can move to a SIPP, I guess risk is still same as investments could get decreased significantly?


In terms of net pay qu, I have learnt from those other threads but want to check £700 difference per month is correct as it will help me make a informed decision alongside other factors. Would appreciate any confirmation.

Grumpy_chap

sultan123 said:

Thanks this is good advice except if SW do now allow transfers. 

You would have to ask SW, or ask via the Employer.
Most schemes do allow partial transfers.

The online calculators are as good a guide as any for comparing different gross - take home pay.  You can do that far better than anyone else because you can be accurate when it comes to factors such as student loan etc.

sultan123

Grumpy_chap said:

sultan123 said:

Thanks this is good advice except if SW do now allow transfers. 

You would have to ask SW, or ask via the Employer.
Most schemes do allow partial transfers.

The online calculators are as good a guide as any for comparing different gross - take home pay.  You can do that far better than anyone else because you can be accurate when it comes to factors such as student loan etc.

Maybe there is a partial penalty for movement though, which I will ask about.

No student loan etc. Simply 2 gross amounts. The difference of gross around 15k seems to be bringing net monthly of £750 between the 2. Sounds about right?

goater78

There is nothing wrong with Scottish widows, they are a major pension company used by millions of people.  To be honest I sort of question why someone obviously qualified enough to be offered a senior position with a high salary would consider turning this down due to a negative score from a small number of reviewers on trustpilot.

Just googling tells you Scottish Widows have 6 million customers and there are currently 798 customer reviews for them on Trustpilot.

It seems odd to take trustpilot seriously here.

sultan123

goater78 said:

There is nothing wrong with Scottish widows, they are a major pension company used by millions of people.  To be honest I sort of question why someone obviously qualified enough to be offered a senior position with a high salary would consider turning this down due to a negative score from a small number of reviewers on trustpilot.

Just googling tells you Scottish Widows have 6 million customers and there are currently 798 customer reviews for them on Trustpilot.

It seems odd to take trustpilot seriously here.

Thank you it was more of a case off by putting lot more into pension to avoid 60%, would I still be doing badly in view of the reviews of SW. The reviews were just as bad on other sites. I have yet to find single positive review.

Would.you say net monthly difference between the 2 gross salaries is around £750?

Ksw3

Have you looked at other pension providers reviews? Most will be very similar. They have millions of policy holders and usually only those with a grievance leave a review.