What is a ‘good’ company contribution on DC scheme
si2winit
Posts: 62 Forumite
Hi everyone
My company is going through a pensions review at the moment. I’m also attending some sessions with my HR director to discuss it.
Currently if I pay 5% the company pays in 10% rising to 12% after 15 years contributions and 14% after 25 years.
Looking to gauge where this is relating to other pensions. So if you are comfortable please drop a note of your company contribution percentage on DC schemes.
Thanks in advance
My company is going through a pensions review at the moment. I’m also attending some sessions with my HR director to discuss it.
Currently if I pay 5% the company pays in 10% rising to 12% after 15 years contributions and 14% after 25 years.
Looking to gauge where this is relating to other pensions. So if you are comfortable please drop a note of your company contribution percentage on DC schemes.
Thanks in advance
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Comments
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Mine have been 20% + 5% minimum employee contribution and 18.5% with no minimum employee contribution.0
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My employer contributed 13.5% if I contributed 10%, I thought that was very good at the time.The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.0
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My current employer contributes 6%, which I consider to be poor.
My previous employer contributed 14%. I'm lucky that the difference in salary allows me to make up the difference in pension contributions without hardship.0 -
I work for a pension company as an adviser and the company puts in 2%! So you should all count yourselves lucky!!0
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That sounds extremely generous.
Mine pays in a fixed 5%. My previous job matched contributions up to 6%. Both were professional jobs in central London.
I thought most companies just paid the legal minimum - currently an employer contribution of 2%, going up to 3% next year, based on staff contributing 3% now and 5% next year.0 -
Company agrees to match contributions up to a maximum of 10%.
(Not sure what the minimum is).0 -
I need to get a job where you work!! Thanks for the response.0
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Thanks everyone, a bit of a mixed bag.0
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Some really mean contributions in there.0
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From the FT: https://www.ft.com/content/e88d7192-790a-11e7-a3e8-60495fe6ca71
In 2012:
The amount going into money purchase schemes (now known as defined contribution or DC) was about half this rate in 2012. The 9.7 per cent total was split about 2:1 between employer and member (6.6 per cent to 3.1 per cent).
With the introduction of auto-enrollment:
By 2015 the average total going into DC schemes was 4 per cent of pay, split roughly 2.5 per cent by employers and 1.5 per cent by members.
I would generally count an employer contribution 10% and upwards as generous (and that's more than I get)0
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