private pension investment

Albermarle

With this workplace pension, will we get any returns on top of what myself and employer are putting into the pot?

Within the pension, your money will be in investments. Some pensions have a wide range of investments, some are more restricted.

You can choose how your money is invested, but if you do not it will go into a default fund.

Investments in a pension can go up and down, just like investments outside a pension, but long term you should see some reasonable growth.

So a pension like this is really a way of investing, but you get free money added to your own contribution.

kokolino23

Qyburn said:

Dazed_and_C0nfused said: 

Your own contribution gets basic rate tax relief, either by you actually only paying 4% but it's 5% gross with the tax relief.

Someone can check my maths, but assuming all employers contributions were from income taxed at 40% I think this would work out as 8% of your salary being added to the pension, at an eventual cost to you of only 3%.

I think they would only pay 3% of my basic salary, I presume the O/T or car allowance (which are added to my salary each month) won't be included.

badmemory

If you are getting an employers contribution that before was just blowing in the wind (going in the bosses pocket) then you are quids in.