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  • FIRST POST
    • AnxiousTheElephant
    • By AnxiousTheElephant 17th Nov 19, 5:37 PM
    • 47Posts
    • 26Thanks
    AnxiousTheElephant
    What % do you pay?
    • #1
    • 17th Nov 19, 5:37 PM
    What % do you pay? 17th Nov 19 at 5:37 PM
    Just wondering what % everyone pays into their work pension?

    My employer sets us up at 5% but I'm debating increasing this..
Page 4
    • Drp8713
    • By Drp8713 19th Nov 19, 11:00 AM
    • 871 Posts
    • 759 Thanks
    Drp8713
    From gross pay I do 8.5% main scheme contributions and 3% to AVCs.

    I also invest a further 54% of my net pay to S&S ISA/LISA/SIPP
    • Anonymous101
    • By Anonymous101 19th Nov 19, 11:39 AM
    • 1,449 Posts
    • 1,186 Thanks
    Anonymous101
    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.).
    Originally posted by JustAnotherSaver


    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.
    Originally posted by JustAnotherSaver

    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.
    Originally posted by JustAnotherSaver

    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.
    • wacky75
    • By wacky75 19th Nov 19, 1:20 PM
    • 26 Posts
    • 16 Thanks
    wacky75
    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 !
    • MoneyWorry
    • By MoneyWorry 19th Nov 19, 1:21 PM
    • 115 Posts
    • 225 Thanks
    MoneyWorry
    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.
    • swindiff
    • By swindiff 19th Nov 19, 1:34 PM
    • 603 Posts
    • 343 Thanks
    swindiff
    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.
    • george4064
    • By george4064 19th Nov 19, 1:48 PM
    • 1,388 Posts
    • 1,383 Thanks
    george4064
    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 2017 - #003 £12,427.51 (104%)
    Save £12k in 2018 - #004 £9,165.94 (46%)
    Save £12k in 2019 - #007 £11,332.36 (94%)
    • blisteringblue
    • By blisteringblue 19th Nov 19, 4:08 PM
    • 1,102 Posts
    • 2,011 Thanks
    blisteringblue
    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.
    • JustAnotherSaver
    • By JustAnotherSaver 19th Nov 19, 9:13 PM
    • 4,157 Posts
    • 746 Thanks
    JustAnotherSaver
    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.
    Originally posted by Anonymous101
    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.

    • dave23
    • By dave23 19th Nov 19, 10:50 PM
    • 60 Posts
    • 23 Thanks
    dave23
    I pay 20% by salary sacrifice, employer pays 10%
    • ScoobyZ
    • By ScoobyZ 20th Nov 19, 7:33 AM
    • 417 Posts
    • 144 Thanks
    ScoobyZ
    I pay 9.3% - NHS (Tax Payer ) Pays 20.6%
    • uk03878
    • By uk03878 20th Nov 19, 9:04 AM
    • 146 Posts
    • 111 Thanks
    uk03878
    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
    • MallyGirl
    • By MallyGirl 20th Nov 19, 9:58 AM
    • 4,076 Posts
    • 9,516 Thanks
    MallyGirl
    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.
    Originally posted by JustAnotherSaver
    My brother is like this. Never has any money but holidays abroad, smokes and has the top sky package.
    He has no pension - or at least he didn't till the autoenrollment kicked in so now he has the bare minimum that will have bought so far.
    He jokes with our Mum that her house is his pension - it is not a joke that I find very funny as it is actually true. He may be in for a shock as I keep reminding her that you can't take it with you when you go so she and her husband are having some great long haul holidays while they can still manage it. A share of the house (between brother, me and step brother) is not going to be enough to make up for a lack of planning up to now - he is 50 in a couple of months.
    • Anonymous101
    • By Anonymous101 20th Nov 19, 10:26 AM
    • 1,449 Posts
    • 1,186 Thanks
    Anonymous101
    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.
    Originally posted by JustAnotherSaver
    yes “I can’t afford” is a phase you hear a lot. In most cases this should be replaced with “I’d like to but it’s not a priority”. In a few cases the priority can be investing.
    • JustAnotherSaver
    • By JustAnotherSaver 20th Nov 19, 11:16 AM
    • 4,157 Posts
    • 746 Thanks
    JustAnotherSaver
    This is why I’m glad that I technically manage my brother & sisters money (obviously they’ve requested this, I haven’t just waxed in).

    I started putting aside late at 28. I made sure they didn’t make the same mistake so told them at 19 & 20 they WILL be starting now. 8-9 years on they’re doing well.
    They appreciate what I do but they admit if left to their own devices they simply “cannot be ar$€d” with it. Some would take the attitude of let them find out the hard way, but they’re my brother & sister and I get much enjoyment out of being to help where I can.

    Same with their HTB ISAs (which are being shifted to L-ISAs) - they wouldn’t have done it without me but are grateful that I help them with it & I just enjoy being able to help.

    • rawr_
    • By rawr_ 21st Nov 19, 3:28 PM
    • 182 Posts
    • 709 Thanks
    rawr_
    6% from me
    12% from employer

    I'm 27 years old so a long way to go yet! But will look at either upping or having something else to pay into in the next few years I think if I can afford it.
    Car Debt as of October 2019: £8,729.63 | Biggest Comp Wins: Tour of Vietnam 2015 | Savings Goal for 2019 4K: £4000 / £4000
    • DrSpendLittle
    • By DrSpendLittle 21st Nov 19, 4:48 PM
    • 685 Posts
    • 2,350 Thanks
    DrSpendLittle
    On a DC scheme.

    I put in 9% via salary sacrifice

    Employer puts in 20% of my pensionable salary but I don't know what that means

    Only started it at age 30, so I need to think about ramping up my contributions once I finish repaying my (part 1) student loan in 18 months time.
    Last edited by DrSpendLittle; 26-11-2019 at 11:42 AM.
    • Brodiebobs
    • By Brodiebobs 21st Nov 19, 5:05 PM
    • 888 Posts
    • 3,494 Thanks
    Brodiebobs
    Really interesting thread.

    We didn't start until the compulsory came in, but now we have OP'd a good chunk of mortgages were making this a priority-both in relatively (to those on here!) low paid roles where companies pay the bare minimum.

    me and Dh both pay 9.5% of Gross pay but neither are salary sacrifice (although there is some jiggery pokery where we get the Tax credited back to pension annually i think) and both employers pay 3%.

    We're in our mid 30's and conscious that the retirement age will more than definitely increase so also have a LISA, S&S savings & a rental property in a hope to eventually be FIRE in our 50's.
    • Durban
    • By Durban 21st Nov 19, 5:38 PM
    • 225 Posts
    • 390 Thanks
    Durban
    I pay approx. 39% of my salary in.

    This is made up of 6.5 % compulsory contributions to LGPS
    5.8 % voluntary contributions to LGPS buying extra years.
    27% voluntary contributions to LGPS AVC

    Added to this , my employer pays in a lot, not sure how much but it is a DB scheme so not a percentage as such. I would imagine Silvertabby would know.

    I am almost 53 but didn't start until I was 34. Also have a rental property and husband has DC pension.
    Last edited by Durban; 21-11-2019 at 5:47 PM.
    Mortgage at highest start date - 25/9/2014 - £92000
    Mortgage now 13/4/2018 - £48,674
    MFD - October 2025 MF Goal Date 2021
    • MancJonny
    • By MancJonny 22nd Nov 19, 12:08 PM
    • 43 Posts
    • 95 Thanks
    MancJonny
    I pay 5.45% (this figure includes tax relief).
    Employer (Civil Service) coughs up 21%.


    Now waiting for the gov's review of public sector pensions following the historic victory of the fire-fighters court battle. Next event - Employment Tribunal hearing due 20 May 2020.


    Classic scheme / defined benefits pensions forever!
    • SBTaxi
    • By SBTaxi 22nd Nov 19, 2:33 PM
    • 15 Posts
    • 1 Thanks
    SBTaxi
    I've been putting into a pension most of my working life. Currently it's 10% me and 10% employer.
    As a result, I was recently told that I can retire anyday I want to by my IFA
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