Increase contributions to NEST or NI?

Miss165 · 29 July 2016 at 3:06PM

Hello!

So I'm quite new to all this pension stuff. I've tried to look through other threads on here but it just confuses me!

Firstly, I've recently been enrolled into NEST. My employer pays 5% and I'm paying like 1% or something? I'm really not sure. My question is, should I increase my contributions? I'm 29 so I know I'm pretty late in starting a pension fund and I believe the recommendation is to increase it but I don't know how much.

I'm also concerned about my NI contributions as I worked part time for so long that I probably don't have enough saved up to get a proper state pension. I did look into getting a statement from HMRC to try and make up some payments but found the process really quite difficult and they ended up being unable to find me or give me a statement based on the information I provided - what a waste of time that was!!

Any advice??

neilvw · 27 August 2016 at 2:28PM

If you can afford it then definitely increase your contributions. The current minimum of one percent is derisory and designed to avoid opt-outs. Contributions will increase gradually and the hope is that employees will stay in through inertia (the "boiling a frog" analogy).

The statutory minimum will be 8% on a band of earnings by April 2019, of which the employer must pay at least 3%.

On State Pension statements, have you tried the newish website? I found it quite straightforward using the Post Office verification method.

https://www.tax.service.gov.uk/check-your-state-pension

Or download a BR19 form:
https://www.gov.uk/government/publications/application-for-a-state-pension-statement

As you've had problems before perhaps you should ring the Government's Future Pension Centre which is open Mon-Fri, 8-6: 0345 3000 168.

Increase contributions to NEST or NI?

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