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Defined contribution: How much to pay in (Percentages)
linuxpenguins
Posts: 152 Forumite
Hello
Quick question; company I work for operates a defined contribution scheme.
How much of my £14400 salary should I pay in monthly?
Thanks
Quick question; company I work for operates a defined contribution scheme.
How much of my £14400 salary should I pay in monthly?
Thanks
0
Comments
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More info:
I'm 23 if that helps!0 -
do they pay in anything?
do you have any debts?
do you have any savings?0 -
how much income in todays terms do you want to retire on?
What age do you want to retire at (your state retirement age is 68)?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
With a company pension, the general rule of thumb is to contribute just enough to get the maximum amount of employer contributions.
For example, if your employer will match your contributions up to 8% then you put in 8% (provided you can afford it).
As you're pretty young you shouldn't be worrying about contributing any additional money above this amount, so don't put in 10% if they only match you to 8%.Mortgage Free in 3 Years (Apr 2007 / Currently / Δ Difference)
[strike]● Interest Only Pt: £36,924.12 / £ - - - - 1.00 / Δ £36,923.12[/strike] - Paid off! Yay!!
● Home Extension: £48,468.07 / £44,435.42 / Δ £4032.65
● Repayment Part: £64,331.11 / £59,877.15 / Δ £4453.96
Total Mortgage Debt: £149,723.30 / £104,313.57 / Δ £45,409.730 -
Yeah they match the contributions
me them
1% 2%
2% 2%
upto 5%
no savings as such only 1.5k0 -
probably a decent amount to retire on.. enough to get by.. no mortgage at the mo nor children0
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retire at 68 sounds fair0
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i would suggest you pay in to get at least the maximum matching amount from your employers... so 5%
any other spare money save as much as possible so you never have to borrow and have started towards a deposit for a property.0 -
5% seems sensible to match the free money. Then use any surplus to build up your savings.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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5% of my salary a month would be £60 right? that means £120 a month would go in? if they pay in 5% too? thanks0
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