Pension Contribution Question

Cobbler_tone

Ours is double match +2% to a max of 12%, not sure how competitive that is.
e.g. you put 5% they put 12%, you put 40%, total contribution 52% etc.
All I know is that it is a fraction of the old DB scheme. In monetary terms I once calculated that there was around £300k less going into a pension between the ages of 51 (when it closed) and 65, although I never intended staying to 65! You could see the run rates of the employer contributions into the DB scheme and it was over 40%, hence why they closed it!

JoeCrystal

Cobbler_tone said:

Ours is double match +2% to a max of 12%, not sure how competitive that is.
e.g. you put 5% they put 12%, you put 40%, total contribution 52% etc.
All I know is that it is a fraction of the old DB scheme. In monetary terms I once calculated that there was around £300k less going into a pension between the ages of 51 (when it closed) and 65, although I never intended staying to 65! You could see the run rates of the employer contributions into the DB scheme and it was over 40%, hence why they closed it!

Very competitive, clearly one of the highest amounts within the DC pension world. After all, the most common ones are the auto-enrollment minimum of 3% from the employer based on qualifying earnings. (3% on income between £6,240 and £50,270) 

ali_bear

Mine was similar to Cobbler's.

Nice company to work for, shame about the tosspots now running it. 

MoneyMan01

Apologies, I should clarify, it's 3% additional from me, which then gets a further 3% from the company. So, 13% total from them, 3% from me, via salary sacrifice scheme. I've updated my opening post. 

Thanks all for the input.

cfw1994

GrumpyDil said:

Just to go back to the original post are you saying the company pays 10% with no contribution from yourself but will then fully match your contribution with the overall impact that the company will pay in 23% alongside your 13%?. That is one good deal -i think I need to change jobs.

Yup.
My basic recommendation to friends & family is to ALWAYS put as much as your company will match: it is free money!
Even better if it is salary sacrifice….but either way, stash that as a minimum.

A decent company if they already put 10% unmatched in 👍

Our offspring have decent jobs with companies who do good matching - both getting over 25% of their salary going in (incl matching), which I think is a great position to be in your 20s.

Cobbler_tone

MoneyMan01 said:

Apologies, I should clarify, it's 3% additional from me, which then gets a further 3% from the company. So, 13% total from them, 3% from me, via salary sacrifice scheme. I've updated my opening post. 

Thanks all for the input.

10+3% match?
i.e. their max contribution is 13%?

artyboy

MoneyMan01 said:

Apologies, I should clarify, it's 3% additional from me, which then gets a further 3% from the company. So, 13% total from them, 3% from me, via salary sacrifice scheme. I've updated my opening post. 

Thanks all for the input.

Ok so in that case, for every 58p of take home pay that you sacrifice (up to the 3% matched contribution limit), you get £2 of additional pension contribution - i.e. your £1 gross contribution plus the £1 match from your employer.

if you think you can get a better deal for your money elsewhere, I'd be very surprised indeed!

FIREDreamer

ali_bear said:

Mine was similar to Cobbler's.

Nice company to work for, shame about the tosspots now running it. 

You could say that about almost everywhere these days, sadly.

Cobbler_tone

FIREDreamer said:

ali_bear said:

Mine was similar to Cobbler's.

Nice company to work for, shame about the tosspots now running it. 

You could say that about almost everywhere these days, sadly.

In my experience, whilst rewards and benefits are eroded, it’s normally the people you work with who are the problem. Those who think they are owed a living, “it’s not my job” merchants, silo mentality and a “what’s in it for me?” attitude. You can give them the world and they’d want the moon….or an early finish.
If people were kind and just did their job the whole experience would be more pleasurable in so many work places.
The horror stories I hear about jumped up managers in retail.
I’m glad my career is behind me but I still really care, do a good job and stay out of the politics.
After 30 odd years there’ll be no heartfelt BS speech and cheesy email.

jobbywobbler

benefits like this are rare, I would class as 'golden handcuffs'.   In my case, my firm doubles to to 10% max (even new starts), so 5% and they 10% (or 3 & 6), older ex-DB folk get an extra 10% which you can flex (cash or Pension), this is through Sal Sac.   Of course people add what they want on top (via sal sac).

Some firms flex month to month, so can be changed at any time.   For the last 1.5 years I am added 20% from me and 20% from the firm, so 40% in total - managed by me as opposed to a default strategy.

The tax savings are quite startling!