Please note: The Auto-enrolment sub-board is now closed. If you have a question around pensions, please post in the Pensions, Annuities and Retirement Planning board.
Minimum Contribution
Phlebas99
Posts: 4 Newbie
My company is suggesting the minimum auto-enrolled pension is 5% (which they will match the 5%).
I can't really afford the full 5%. Do I have the right to go back and ask to give...say...1%, and have them match with 1%?
I can't really afford the full 5%. Do I have the right to go back and ask to give...say...1%, and have them match with 1%?
0
Comments
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If the scheme rules have a minimum higher than the statutory minimum, that's what you must pay to be in the scheme. Check with your employer that it is compulsory to pay the 5%.
A 5% matched contribution is a good deal, however, and opting out would mean losing out on free money. Check what the effect on your take-home pay would be: because of tax relief it may be smaller than you think (even more so if it is done via salary sacrifice as there would be an NI saving too).0
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