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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 2
    • desrese
    • By desrese 18th Nov 19, 1:44 AM
    • 11 Posts
    • 2 Thanks
    desrese
    Me 35% Employer 15% under salary sacrifice. I have paid more, but it was on the limit of affordability.

    It is good to test your expected income in retirement, by living off it for a while.
    • JustAnotherSaver
    • By JustAnotherSaver 18th Nov 19, 6:18 AM
    • 4,430 Posts
    • 813 Thanks
    JustAnotherSaver
    Wow. All these people with nice employers who pay in above and beyond.
    Well I guess I’ll be the first guy to come in and say my employer pays in the absolute minimum that they can - so 3%. Funnily the same applies to most people that I know. I only know of a small number of people who have employers paying in above and beyond.

    In to the workplace pension scheme, because my employer pays the minimum, I also pay the minimum - so 5% for a combined 8%.

    I also pay in to a SIPP a set amount each month so I don’t know how this combines to give a percentage.

    The 5% workplace pension works out around £80-£120 a month (from me) depending on 1) how many hours I put in 2) if it’s a 4 or 5 week month.
    I pay in £200 per month to my SIPP but going to be looking at whether I can afford to double that. Certainly increase it anyway.

    So whatever that works out as a percentage. I’m in my mid 30s.
    • JoeCrystal
    • By JoeCrystal 18th Nov 19, 7:06 AM
    • 2,090 Posts
    • 1,498 Thanks
    JoeCrystal
    Well I guess I’ll be the first guy to come in and say my employer pays in the absolute minimum that they can - so 3%. Funnily the same applies to most people that I know. I only know of a small number of people who have employers paying in above and beyond.
    Originally posted by JustAnotherSaver
    I know, they are so lucky! I certainly badgered my employer's higher-ups enough as it is only to be shot down as they do not see the 'point' of paying more than a minimum as they don't pay into theirs. And even so, they only introduce the minimum above the qualifying earnings.

    Hopefully, we will see the increase in the minimum level of auto-enrolment contributions one way or another in due course.
    • k6chris
    • By k6chris 18th Nov 19, 7:19 AM
    • 525 Posts
    • 913 Thanks
    k6chris

    In to the workplace pension scheme, because my employer pays the minimum, I also pay the minimum - so 5% for a combined 8%.

    I’m in my mid 30s.
    Originally posted by JustAnotherSaver

    I'm not sure the logic of you paying the minimum because your employer pays the minimum stacks up! What your employer pays is not in your gift (unless you change employers). What you put in is. The advantage of pension saving is the tax relief you get as you pay money in. As a start, find out how much your employer would allow you to pay in. The good news is you are thinking about the contribution question at an earlyish age. Finger in the air, you need to be putting 15% - 18% into your pension each month, between you and your employer. Your future self will thank you. Good luck.
    "For every complicated problem, there is always a simple, wrong answer"
    • Happier Me
    • By Happier Me 18th Nov 19, 8:07 AM
    • 546 Posts
    • 1,218 Thanks
    Happier Me
    I pay 6.8% or 8.5% into the LGPS scheme, depending on earnings. Husband is in a DC scheme, pays 20%, employer pays the minimum 3%. They have recently introduced salary sacrifice though and the NI saving meant hubby could increase his pension contributions by 3%.

    We also contribute £600 a month to long term retirement savings and this will increase to around £1200 once we have finished some DIY projects.

    We're heading into our mid 40s and we are aiming to retire at 55 on £35k gross a year plus a lump sum for big spends of around £100k. We have gaps in our savings but a plan to address them over the next 11 years or so. If I'm honest, if it weren't for my DB, retiring at 55 on our target income would be impossible. At 44, I have accrued around £13,500k pension pa in today's money from 60. Our pension planning is based on my accrued actuarial reduced pension, not projected LGPS pension, so our savings 'gaps' are worst case scenario.
    • swindiff
    • By swindiff 18th Nov 19, 10:59 AM
    • 605 Posts
    • 356 Thanks
    swindiff
    Employer pays 21.1% into DB scheme and I pay 9.6%, these figures are due to rise slightly though in the future. I also pay 26% into the DC scheme, its a hybrid pension scheme. So total of 56.7% of my salary.
    • adonis10
    • By adonis10 18th Nov 19, 11:12 AM
    • 1,686 Posts
    • 233 Thanks
    adonis10
    Me - 18% via salary sacrifice
    Employer - 16%

    Looking to increase mine to 20-22% in the next few months.
    Last edited by adonis10; 18-11-2019 at 11:14 AM.
    • lexington013
    • By lexington013 18th Nov 19, 12:33 PM
    • 325 Posts
    • 404 Thanks
    lexington013
    Me 10% my employer 7.5%.
    I also contribute £100 a month into a Sipp.
    Looking to retire at 57 (4 years).
    • Zola.
    • By Zola. 18th Nov 19, 12:56 PM
    • 1,546 Posts
    • 734 Thanks
    Zola.
    I put in 12%, work puts in 6%

    Wife and I also invest in S&S ISAs every month..
    • Mothman
    • By Mothman 18th Nov 19, 12:58 PM
    • 123 Posts
    • 34 Thanks
    Mothman
    Late 50's and I pay 7% into my NEST workplace pension and employer pays 3%. I also pay 33% into a SIPP and so 40% overall.
    • vacheron
    • By vacheron 18th Nov 19, 1:23 PM
    • 1,087 Posts
    • 1,069 Thanks
    vacheron
    I pay 5% and the company pays 8%
    Additionally I pay a further 25% voluntary contribution

    Both are via Salary Sacrifice and my employer gives me back all of their 13.8% NI on my 25% voluntary element.

    This results in almost exactly double what I would have recieved in take home going into my pension each month.

    So "Two birds in the bush" squarely trumps "One in the hand" in my personal experience!
    • The rich buy assets.
    • The poor only have expenses.
    • The middle class buy liabilities they think are assets.
    Robert T. Kiyosaki
    • michaels
    • By michaels 18th Nov 19, 1:44 PM
    • 23,234 Posts
    • 105,570 Thanks
    michaels
    Employer 9% plus 10% of my sal sac.
    Me about 68% .
    Cool heads and compromise
    • MaxiRobriguez
    • By MaxiRobriguez 18th Nov 19, 1:51 PM
    • 788 Posts
    • 647 Thanks
    MaxiRobriguez
    Interesting thread. I thought my employer was relatively generous giving me 10% of salary but seems that's a run of the mill figure if anything!

    My total remuneration involves a fair bit of non-salary earnings so my current pension provision is actually when considering everything:
    6.5% employer.
    20% me.

    And that gets me to just under the higher rate of tax threshold.

    I'm 32, I'll probably bump up my contributions next year but after that will need to claw some back as starting a family and likely to need a new house.

    Sounds like I should also look for a new employer...
    • Clive Woody
    • By Clive Woody 18th Nov 19, 2:37 PM
    • 4,935 Posts
    • 5,515 Thanks
    Clive Woody
    I pay 7%, my employer pay 10% (max allowed contributions).

    I also make regular AVCs (employer contributes NI savings.....around 13% I think).

    In the next 12 months or so I will be looking to increase contributions to hit the maximum £40k annual allowance and then retire late 50s. Will also be looking to build substantial S&S ISA funds, a larger cash pot, probably max out Premium Bonds and see if anything else takes my fancy.
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
    • WannabeEdouard
    • By WannabeEdouard 18th Nov 19, 2:41 PM
    • 15 Posts
    • 2 Thanks
    WannabeEdouard
    Just upped mines to 33% this month. My employer puts in 17% .
    • Clive Woody
    • By Clive Woody 18th Nov 19, 2:43 PM
    • 4,935 Posts
    • 5,515 Thanks
    Clive Woody
    Interesting thread. I thought my employer was relatively generous giving me 10% of salary but seems that's a run of the mill figure if anything!
    Originally posted by MaxiRobriguez
    I would speculate that the contributors on here are not entirely representative of the population and most are here because they take financial matters seriously....and are probably above average earners (waits to be shot down).

    For a while after reading posts on here I was starting to wonder if I was in a minority by not having a DB pension, but eventually the penny dropped and I realised that a lot of those with DB schemes came on here to find out more and discuss their options.

    I would suggest that 10% employer contribution is a decent one (from my experience - 20yrs in the pharma industry), but there are clearly more generous employers out there. You do need to focus on total package, but the pension should certainly be a key element for consideration.
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
    • Hopingforthesimplelife
    • By Hopingforthesimplelife 18th Nov 19, 2:43 PM
    • 22 Posts
    • 6 Thanks
    Hopingforthesimplelife
    10% 'ee
    5% 'er
    DC scheme.

    I am surprised most seem higher than this, some considerably so. I wonder if this is a sector thing or skewed by the type of people posting in this forum. Or alternatively the UK 'er average is over 5%?
    • MaxiRobriguez
    • By MaxiRobriguez 18th Nov 19, 2:51 PM
    • 788 Posts
    • 647 Thanks
    MaxiRobriguez
    10% 'ee
    5% 'er
    DC scheme.

    I am surprised most seem higher than this, some considerably so. I wonder if this is a sector thing or skewed by the type of people posting in this forum. Or alternatively the UK 'er average is over 5%?
    Originally posted by Hopingforthesimplelife
    Smart people avoiding taxes gravitate here.

    Go and speak to friends and work colleagues who don't appear on the ball. There will be some that will make minimum payments and some that go as high as needed to get max benefit from employer payments, but I doubt many will continue to sacrifice more than that.
    • Anonymous101
    • By Anonymous101 18th Nov 19, 3:29 PM
    • 1,475 Posts
    • 1,229 Thanks
    Anonymous101
    Smart people avoiding taxes gravitate here.

    Go and speak to friends and work colleagues who don't appear on the ball. There will be some that will make minimum payments and some that go as high as needed to get max benefit from employer payments, but I doubt many will continue to sacrifice more than that.
    Originally posted by MaxiRobriguez

    I've found that true of the vast majority of my friends, family and colleagues. Usually the only ones that contribute more are running up to retirement and having a last minute panic.


    I think its symptomatic of the larger problems in personal finance and general attitudes to spending where people spend most of what they earn and save very little. Worst of all for me is that people don't question generally accepted advice. Generally people don't retire early and don't even retire in a healthy financial position so why would you think that the general advice is good enough?
    • Aegis
    • By Aegis 18th Nov 19, 3:30 PM
    • 5,152 Posts
    • 3,535 Thanks
    Aegis
    Auto Enrollment levels plus 20% personal contributions to a SIPP.
    I am an Independent Financial Adviser
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
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