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What percentage to pay in ?
Dick_here
Posts: 1,605 Forumite
The company scheme went from Final Salary to Career Average a couple of years ago. Also we were contributing at 1/60ths, which switched to 1/65ths for the same contribution (5%, 4.75% with salary sacrifice). We can up it back to 1/60ths but the cost rises to 7%, 6.75% with ss. Is this worth doing, it feels like quite a contribution jump for not a huge benefit. It would cost me around £50pm extra. I'm paying £30pm into an AVC though, would it be better to stop that and switch to 1/60ths at a net cost of £20pm ?
Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
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Rather than doing a load of calculations just ask if the employer is going to increase his contributions if you increase yours. If the answer is no tell them to stuff it.0
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+Retired_I.F.A. wrote: »Rather than doing a load of calculations just ask if the employer is going to increase his contributions if you increase yours. If the answer is no tell them to stuff it.
its a final salary scheme or equivalent so it doesn't matter what the employer puts in except its got to be enough to be solvent.0 -
Of course it matters.plonker!0
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Retired_I.F.A. wrote: »Of course it matters.plonker!
could you explain how the return on a defined benefits scheme is affected by the employers contribution? (other than solvency)0 -
Can anyone answer my original question please.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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I already did.
You've stated the cost to you of the increase. if the total cost of the increase is to be met by the employee then tell them to stuff it.0 -
Retired IFA, a career average scheme is just another type of final salary scheme so of course the employer doesn't make any actual contributions in the way you appear to mean.Trying to keep it simple...
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EdInvestor wrote: »Retired IFA, a career average scheme is just another type of final salary scheme so of course the employer doesn't make any actual contributions in the way you appear to mean.
So can you try to keep it simple for me and offer me your advice, Ed ?Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
I give up. A ten year old can understand what I was saying and I couldn't have said it any plainer.
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can you add some more detail
are you a 40% tax payer
how old are you
when you say the scheme reverts to 1/60 ..is this just for new money only or for all you existing contributions
if the latter how long have you been in the scheme
do you expect your salary to rise a lot over the next few years (i.e promotions etc )0
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