How much does your employer contribute to your pension?

bootman

My husband currently has a pension that was a Group Personal Pension but now in his own name so I guess private as he left that company.

His employer pays 10% into it each month. Not sure what our % is but we personally pay £100 a month as well.

He has been offered a new job that is a bit more basic but the company only pay a 5% contribution. We have not got to the nitty grity of whether they will say it has to be their pension or they would be happy to pay into this one that is running.

I was just curious as to what other people get paid by in their employer?

Not sure if 5% is tight or the norm, 10% may be very generous?

dunstonh

10% is very generous. 3-5% is the typical norm for those that pay into money purchase schemes. Most pay nothing but will be forced to in 2012 .

ukdickie31

Mine is 19.5%

Maybe I am very lucky.

bootman

ukdickie31 wrote: »

Mine is 19.5%

Maybe I am very lucky.

Gosh, well done you!

x_raphael_xx

Mine pay nothing into a pension. Something to do with the fact that about 400 of the employees are self employed.

turbobob

I get 5% employer contribution, with up to a further 5% through matched contributions (group stakeholder pension).

david78

They pay 31% for me! Well not really for me only as its a final salary scheme.

StuartGMC

I'm in the (now closed for new employees) final salary scheme with company contributing 25% and me a further 10%... just hope this can survive to the time I need to call upon it and that it will be better than having left it which seems to remain the case presently.

BTW The option for new employees is to double the employee contribution to a maximum of 8% (i.e.employee to 4%, company 8%) which seems to be at the upper end of those on offer?

But what "should" we be putting aside each month in long term investments for retirement; Pension of 10% plus 10, 15, 20% of income?

I guess as usual "it depends" and the earlier you start the better but I would be interested in comments. At 43 we are looking to try to improve the situation, but do have a DD who will need help through Uni (or whatever) in 8 years time, so target is mortgage cleared when she is about 15 1/2 and then those funds start to accumulate each month as no mortgage to pay, plus, we have that same amount available each month during her further education etc.

In addition to the pension (OH works half-time and has a local gov pension also) we are saving some 23% of net income per month which covers the complete range of short term and long term costs (cars etc) so no need for loans. Also a further 9.63% is put into Stocks & Shares ISAs. Met this FY target to increase this by 10% despite increasing costs at the moment (+12% over FY2007 monthly amount).

Hope to reach 100% offset for mortgage next year and then will put additional monies into Cash ISA also, but am considering raising mortgage overpayment from 40% of minimum to about 55% to further decrease date to mortgage-free status.