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  • FIRST POST
    • AnxiousTheElephant
    • By AnxiousTheElephant 17th Nov 19, 5:37 PM
    • 52Posts
    • 41Thanks
    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 5
    • annabanana82
    • By annabanana82 22nd Nov 19, 11:35 PM
    • 223 Posts
    • 125 Thanks
    annabanana82
    I'm 37 and I'm on civil service Alpha so 5.45% and employer pays 21% in theory of course on the latter. This year's pension statement suggests based on current earnings I'd have a pension of £42k pa in 31 years time but I with some jiggery pokery I can change this for a fairly decent lump sum.
    We decided that we wanted a full time parent at home so we've had to make some financial sacrifices, savings being ones of those.
    Due to a critical illness payout our savings are now much healthier, and the OH is hopefully returning to full time employment in 12 months time when we can really start to build on our savings for a comfortable and hopefully early ish retirement
    • Aachaltomar
    • By Aachaltomar 23rd Nov 19, 12:03 AM
    • 3 Posts
    • 0 Thanks
    Aachaltomar
    Paying 5% and from company getting 8%.
    • enthusiasticsaver
    • By enthusiasticsaver 23rd Nov 19, 12:51 AM
    • 9,740 Posts
    • 22,808 Thanks
    enthusiasticsaver
    I retired at 58 and was paying 6.5% into the LGPS along with around 50% of my income going into stocks and shares isas/sipps for the last 5 years of my working life.

    DH paid in 10% to a booster pension plan (DB) which then changed to a DC scheme 8 years before retirement. As a sweetener his company put in 20% to his 10% reducing by a percentage each year so at one point 30% of his income was going into his pension and in final year before retirement 22%.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • MaxZorin
    • By MaxZorin 23rd Nov 19, 6:46 AM
    • 21 Posts
    • 9 Thanks
    MaxZorin
    This year's pension statement suggests based on current earnings I'd have a pension of £42k pa in 31 years time but I with some jiggery pokery I can change this for a fairly decent lump sum.
    Originally posted by annabanana82
    The Alpha commutation rate is pretty abysmal and is poor value.
    • Southend1
    • By Southend1 23rd Nov 19, 9:19 AM
    • 3,276 Posts
    • 3,114 Thanks
    Southend1
    Age 38, Salary approx £33k

    9.6% DB (USS)

    1% D.C. via salary sacrifice

    8.4% LISA (S&S)

    Hoping to retire at 60 with an income of £21k ish
    • swindiff
    • By swindiff 23rd Nov 19, 9:31 AM
    • 605 Posts
    • 356 Thanks
    swindiff
    Wouldn't you be better off putting the 8.4% into the DC scheme with SS?
    • swindiff
    • By swindiff 23rd Nov 19, 9:39 AM
    • 605 Posts
    • 356 Thanks
    swindiff
    You would get tax relief and national insurance relief in contributions to the DC scheme so £1 into it only costs you 68p. You would likely get most, if not all of it out tax free as a lump sum when you retire too as it has the benefit of being valued against the DC and DB pensions combined.
    • Southend1
    • By Southend1 23rd Nov 19, 11:24 AM
    • 3,276 Posts
    • 3,114 Thanks
    Southend1
    Yes, but unfortunately my employer only allows salary sacrifice on the 1% that was “the match”. So I figured LISA is a good alternative to give me options at age 60
    • swindiff
    • By swindiff 23rd Nov 19, 11:30 AM
    • 605 Posts
    • 356 Thanks
    swindiff
    Are you sure? Mine allows SS on all contributions.
    • Southend1
    • By Southend1 23rd Nov 19, 12:01 PM
    • 3,276 Posts
    • 3,114 Thanks
    Southend1
    Are you sure? Mine allows SS on all contributions.
    Originally posted by swindiff
    Yes I have asked twice about it to be sure. The answer was...

    “ I can confirm that the salary sacrifice arrangement we have in place allows for the match contributions, which are a maximum of 1% to be processed via salary sacrifice.

    While this 1% match contribution can be processed via salary sacrifice and so reduce both your taxable and niable pay, it is not possible for additional contributions above this to be processed via salary sacrifice. Any contributions made above the match will attract tax relief though.“
    • swindiff
    • By swindiff 23rd Nov 19, 12:16 PM
    • 605 Posts
    • 356 Thanks
    swindiff
    That's a shame and I don't quite understand their position because it saves them money too.
    • shangaijimmy
    • By shangaijimmy 23rd Nov 19, 6:22 PM
    • 3,235 Posts
    • 16,703 Thanks
    shangaijimmy
    23% me into DC via salary sacrifice
    A whopping 3% by employer

    I also contribute 10% to S&S ISA, with the intention of this potentially allowing me to finish a couple of yrs earlier and delay pension. Or it may well pay for the pre retirement house jobs!!
    MFW: Was: £136,000.......Now: £76,704.80......Reduction: £59,295.71... in 58 months!
    MFiT-T5 #8 - 37.28% of £23,000
    Save 12k in 2020 - £0 // £24,000 (0.00%) & 2020 - Banish the Clutter - 18 // 366 days (4.92%)
    • Gadfium
    • By Gadfium 23rd Nov 19, 6:41 PM
    • 661 Posts
    • 1,241 Thanks
    Gadfium
    Turned 50 a couple of months ago.
    I have 19 years in a DB pension scheme which has been closed.
    I now put 25% into a DC that started mid 2019 via SS, employer puts in 13% (though this will drop to12% in a couple of years).
    Currently about £115K in DC pension pot. I'm aiming to get that to £300K in the next 5 years (give or take).
    • Greta Sharbo
    • By Greta Sharbo 24th Nov 19, 5:10 PM
    • 339 Posts
    • 313 Thanks
    Greta Sharbo
    Just about to start a new job (tomorrow) so will be 7.5% employer and around 10% me. Got another 6% or so going into other long term savings. I was a late starter to pensions so playing catch up.
    • NedS
    • By NedS 24th Nov 19, 5:40 PM
    • 269 Posts
    • 173 Thanks
    NedS
    Currently 5.45% employee contribution into CS Alpha (DB) plus 27.1% employer contribution (I know that figure is not really for my benefit), and I pay 69% into my SIPP. Overall contributions ~75% of pensionable salary. I started late so have some catching up to do!
    • katkatmachine
    • By katkatmachine 24th Nov 19, 6:23 PM
    • 33 Posts
    • 11 Thanks
    katkatmachine
    I am so jealous. Most of you guys have very generous employers. Mine only pays the minimum which is 3% and my contribution is 5%. I have LISA though where I put £100 a month. I just turned 30 last month, I only started contributing in my pension last year (just moved here in the UK last 2017), so im in just my 2nd year putting money for my retirement. I don’t think I will be able to increase my contribution soon because we have to pay now mortgage if everything goes well with house purchase.
    • randompenitent
    • By randompenitent 26th Nov 19, 9:09 PM
    • 12 Posts
    • 3 Thanks
    randompenitent
    Employer 9.17%
    Me: 17%

    Employer pays 8%, then adds a portion of the employer NI contributions for salary sacrifice beyond that number. Pretty generous, but it's still a DC rather than a DB scheme.
    Last edited by randompenitent; 26-11-2019 at 9:13 PM.
    • PParka
    • By PParka 27th Nov 19, 4:15 PM
    • 202 Posts
    • 72 Thanks
    PParka
    Employer 8% and I pay 42%.
    Both via salary sacrifice, but employer keeps all of their NI savings

    Fairly high contribution as I’m determined to retire at 55 (if I want to)
    • Anonymous101
    • By Anonymous101 28th Nov 19, 7:56 AM
    • 1,475 Posts
    • 1,228 Thanks
    Anonymous101
    Employer 8% and I pay 42%.
    Both via salary sacrifice, but employer keeps all of their NI savings

    Fairly high contribution as I’m determined to retire at 55 (if I want to)
    Originally posted by PParka


    I'm paying in a large % also with the view of filling the pension well before I can have access to it. Depending on your age you just need to be careful that all your net worth isn't tied up in your pension as I'd bank on the access to pension age going up in the next few years.


    I've tried to strike a balance between the efficiencies of saving into a pension with the accessibility of an ISA. All with the view of retiring early..... I call it the "Sunlife under 50 plan"!
    • devildolly
    • By devildolly 28th Nov 19, 8:26 AM
    • 14 Posts
    • 22 Thanks
    devildolly
    Age 35
    Employer 8% (goes up to 12% when I hit 45), me 4%, but I pay AVC to bring it up to 18%.

    I try to pay in half my age as a percentage. Have done this since age 21.

    My husband is 12 years older (and likely to retire age 55) so I need to accelerate my savings so I can retire early and spend some good retirement years together. Childcare costs prevent any further savings unfortunately.
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