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What % do you pay?

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  • Anonymous101Anonymous101 Forumite
    1.6K posts
    Part of the Furniture 1,000 Posts Combo Breaker
    I agree with your entire post. The bit about getting used to spending is very true. That's why when i get any pay rise, i always bump my contributions to something i'm saving for (emergency fund, retirement for e.g.).

    I do exactly that too. My percentages were, I'd say, "normal", ten years ago. I was making the most of the employer match but little else. Since then most of the pay rises I've received in one way or another have gone into savings. Personally that's how I got to such a high savings rate. My salary has doubled in just over 10 years whilst my expenses haven't gone up too much.

    I only really know people who either struggle to get by or manage their money a little better and take a while saving to afford something. I don't know these people who earn or have the kind of money that seems to be getting mentioned here so while it interests me as i wonder how life is for different people in different situations, it's not really something i can relate to.

    I understand, I think I come from a similar background, my wife certainly does. We perhaps aren't there now but our families and many of our social circle are. I find peoples relationship with money very interesting... People put glass ceilings on themselves, self sabotage, act out of fear or greed. The social and psychological side of money is very interesting to me.
    To not totally waffle on, i do wonder when people calculate what goes in to their pension when they're talking about it, do they include their employers contribution or only their own?
    Me personally i only focus on what i do myself. My own contributions. I don't rely on there being a state pension at retirement, i rely on myself. So when i'm talking about my contributions i'd actually say i put in 5%, whereas it's a combined 8% that goes in.

    I'd say its always worth splitting them out but using both. You're contributing the 5% but there's 8% actually going into your pension, which is yours so both figures are relevant.
  • wacky75wacky75 Forumite
    26 posts
    Fourth Anniversary
    I really don't see that people on here are bragging at all. They are giving advice and answering questions honestly. The sharing of information on this forum is invaluable, so I would try not to see it from a jealous / envious perspective, but one that can be learnt from.
    People earn different amounts of money - that's life. I say fair play to those that do well in life, especially those that have taken risks by starting personal businesses or made career changes.
    As somebody else said, the amount you contribute to your pension is personal to your circumstances.
    It's a good idea to increase your pension contributions if you get a pay increase (or a % of) - get in the habit of doing it and it will be money that you will never miss, as you will never have had it..
    Personally - I contribute 5% and my company contributes 6%, but I make AVC's to take my 5% up to 12% (partly for tax reasons and partly to make my pension balance healthier).
    Good luck !
  • MoneyWorryMoneyWorry Forumite
    117 posts
    Part of the Furniture 100 Posts
    5% of gross pay - Me
    3.25% of gross pay -Employer

    5.1% of net pay to personal pension

    Relatively low paid at 22.5K and live alone. I think I would struggle to pay a lot more, though I would definitely like to as I'm 59 next week.
  • swindiffswindiff Forumite
    653 posts
    Fifth Anniversary 500 Posts Newshound!
    I currently overpay into the DC part of my pension and it costs me £606 in reduced takehome pay, but it boost my pension pot by £892/month. Only have emergency savings of about £7k but I figure if I really need extra cash for something I can just take a payment holiday into my DC pension for however long is required. We don't really go without but we live within our means. The way I look at is is the more we can stuff into our pensions now the earlier we can stop work. For us its worth having less disposable income now to free us from work maybe 7 years early.
  • george4064george4064 Forumite
    1.7K posts
    Ninth Anniversary 1,000 Posts Photogenic Name Dropper
    Me - 6.5%
    Employer - 7.5%

    28 years old. Both paid into DC scheme, invested as follows:

    84% L&G World ex UK Equity
    16% L&G UK Equity Index
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2018 - #004 £9,166 (76%)
    Save £12k in 2019 - #007 £11,720 (98%)
    Save £12k in 2020 - #021 £9,067 (60%)
  • blisteringblueblisteringblue Forumite
    1.1K posts
    Part of the Furniture 1,000 Posts
    Me - 15%
    Employer - 8%

    Hopefully retiring at 55 in 3 years pots permitting. Company went to DC back in 2006 and I've cashed a couple of small DBs in with good CETV.

    I plan to increase to 20% this April. and a little bit each April through to retirement.
  • JustAnotherSaverJustAnotherSaver Forumite
    4.9K posts
    Seventh Anniversary 1,000 Posts Name Dropper I've been Money Tipped!
    I find peoples relationship with money very interesting... People put glass ceilings on themselves, self sabotage, act out of fear or greed. The social and psychological side of money is very interesting to me.
    Agree totally.

    People at work are where i see the majority of cases that i just can't wrap my head around. The classic phrase ... "I can't afford....".
    Being more interested in saving than anyone else i work with my reaction is oh really, have you looked at all areas where you could free up some cash?

    They reply along the lines of basically yes.

    As the conversation goes on i suggest that those 2-3 takeaways this week aren't such a good idea.
    -Yeah but it's my treat.
    Those x-cans / x-bottles of alcohol at the weekend, maybe remove them or at the very least reduce them?
    - No way, not after the week i've had!!
    And then the one i love to get on ... maybe you should knock smoking on the head (i'm a strong anti-smoker although i don't go around preaching)
    - Not a chance, are you crazy? I need to have some enjoyment.

    Yeah but you've done all you can, right?

    Each to their own. Obviously those things are important to them. People are fascinating.

  • dave23dave23 Forumite
    65 posts
    Part of the Furniture 10 Posts
    I pay 20% by salary sacrifice, employer pays 10%
  • ScoobyZScoobyZ Forumite
    425 posts
    Part of the Furniture 100 Posts Photogenic
    I pay 9.3% - NHS (Tax Payer :) ) Pays 20.6%
  • uk03878uk03878 Forumite
    294 posts
    100 Posts First Anniversary Name Dropper
    17% and employer pays 10% aged 54 retiring next year
    Over the years whenever I got a small pay rise every few years I put an extra % on my contribution and have always done so since around 20 (you don't miss it)
    Big pay rises due to promotion - I took it as a lifestyle bump
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