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  • FIRST POST
    • Shevek
    • By Shevek 23rd Feb 18, 8:33 AM
    • 40Posts
    • 2Thanks
    Shevek
    Employer won't let me increase my contribution
    • #1
    • 23rd Feb 18, 8:33 AM
    Employer won't let me increase my contribution 23rd Feb 18 at 8:33 AM
    I have recently started working for a new, small company (<15 employees).

    I have been enrolled in a Workplace Pension, currently contributing the initial 1%/0.8%/0.2%.

    I have requested to increase my contribution but have been told that they do not allow this.

    Is that correct, are they allowed to stop me contributing more?

    I have googled and read many pages on gov.uk sites but nothing I can find confirms either way.

    TIA

    Shevek
    Last edited by Shevek; 23-02-2018 at 11:29 AM. Reason: Update title
Page 1
    • HappyHarry
    • By HappyHarry 25th Feb 18, 9:16 AM
    • 642 Posts
    • 913 Thanks
    HappyHarry
    • #2
    • 25th Feb 18, 9:16 AM
    • #2
    • 25th Feb 18, 9:16 AM
    Itís unusual, but Iím not aware of any rules that say an employer has to let you contribute more.

    Could you not open a personal pension and contribute to that, in addition to the contributions you are making to your employerís scheme?
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • Shevek
    • By Shevek 25th Feb 18, 9:40 AM
    • 40 Posts
    • 2 Thanks
    Shevek
    • #3
    • 25th Feb 18, 9:40 AM
    • #3
    • 25th Feb 18, 9:40 AM
    I have a SIPP from my previous employment which I believe I can continue to contribute to.

    AIUI, I would have to make those contributions directly from my bank account, so wouldn't that lose all of the tax benefits of paying directly from my salary?
    • Shevek
    • By Shevek 25th Feb 18, 9:42 AM
    • 40 Posts
    • 2 Thanks
    Shevek
    • #4
    • 25th Feb 18, 9:42 AM
    • #4
    • 25th Feb 18, 9:42 AM
    Ah, I just logged in to check it and it says:

    all payments made here will be considered individual contributions and basic rate tax relief will be reclaimed
    • LHW99
    • By LHW99 25th Feb 18, 9:08 PM
    • 1,325 Posts
    • 1,223 Thanks
    LHW99
    • #5
    • 25th Feb 18, 9:08 PM
    • #5
    • 25th Feb 18, 9:08 PM
    You will get the tax relief in a SIPP, but not any additional employer contributions. However, the employer / employee minimum rates are increasing shortly.
    https://www.nowpensions.com/help-centre/faqs/contributions/what-are-auto-enrolment-contribution-rates
    (This is from Now pensions, but it applies to all the autoenrollment ones.)
    • Shevek
    • By Shevek 25th Feb 18, 9:19 PM
    • 40 Posts
    • 2 Thanks
    Shevek
    • #6
    • 25th Feb 18, 9:19 PM
    • #6
    • 25th Feb 18, 9:19 PM
    I had seen that before but I still want to pay more than that.

    My last firm had a great pension - I put in 6% and they put in 12% (it's the only thing I miss about working there )

    I would at least like to continue my 6%

    So I guess I will put 5% into my SIPP until April, then drop it to 3% after that.
    • Thrugelmir
    • By Thrugelmir 25th Feb 18, 9:31 PM
    • 58,982 Posts
    • 52,318 Thanks
    Thrugelmir
    • #7
    • 25th Feb 18, 9:31 PM
    • #7
    • 25th Feb 18, 9:31 PM
    I have recently started working for a new, small company (<15 employees).
    Originally posted by Shevek
    At a guess. From the employers perspective the administration cost is unwarranted. Given the small number of employees.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • xylophone
    • By xylophone 4th Mar 18, 3:09 PM
    • 25,606 Posts
    • 15,134 Thanks
    xylophone
    • #8
    • 4th Mar 18, 3:09 PM
    • #8
    • 4th Mar 18, 3:09 PM
    Which auto enrolment scheme are you in?
    • Shevek
    • By Shevek 4th Mar 18, 3:19 PM
    • 40 Posts
    • 2 Thanks
    Shevek
    • #9
    • 4th Mar 18, 3:19 PM
    • #9
    • 4th Mar 18, 3:19 PM
    It is NEST
    • Brynsam
    • By Brynsam 6th Mar 18, 5:35 PM
    • 1,163 Posts
    • 782 Thanks
    Brynsam
    It is NEST
    Originally posted by Shevek
    Log in to your account with NEST and you can make extra contributions direct.
    • Mnd
    • By Mnd 12th Mar 18, 6:34 PM
    • 548 Posts
    • 646 Thanks
    Mnd
    Agreed, I'm with nest and made additional contributions, also my wife is with the people's pension and we pay extra into that as well
    • Shevek
    • By Shevek 12th Mar 18, 6:56 PM
    • 40 Posts
    • 2 Thanks
    Shevek
    Thanks to all for the replies.

    I was just hoping to not have to do anything manually.

    If I do have to make manual payments then I think I would rather do it into my SIPP than NEST.
    • runninglea
    • By runninglea 27th Mar 18, 9:17 PM
    • 867 Posts
    • 1,285 Thanks
    runninglea
    I asked this question at work and got told that the sage software asked for the contribution percentage and this was set for every employee. If all its ee's wanted different rates then the software couldn't handle it.
    Year 2018 (8,500/£17000mortgage repayment)Overall mortgage (64,600/165568) (39
    .0%) (38/100) payments made. Total paid 2018 year £8,500

    Total paid 2017 year £15,300Total paid 2018 year £8,500
    • datlex
    • By datlex 3rd Apr 18, 8:22 PM
    • 1,661 Posts
    • 1,553 Thanks
    datlex
    It is definitely possible with NEST to increase the % you pay. I know because I have done so. You can also make additional contributions via direct debit (min £10)
    • tizerbelle
    • By tizerbelle 3rd Apr 18, 8:59 PM
    • 1,486 Posts
    • 3,216 Thanks
    tizerbelle
    Might be off the mark here but perhaps there is some misunderstanding due to the terminology used? Its not your employee contribution that you want to increase - employee contributions are a set %.What you want to do is make an additional voluntary contribution (AVC). It's possible that if you were talking to someone who deals with HR/Payroll in such a small company that they may not really understand pensions so didn't realise what you are asking.
    • Shevek
    • By Shevek 10th Apr 18, 7:18 AM
    • 40 Posts
    • 2 Thanks
    Shevek
    Might be off the mark here but perhaps there is some misunderstanding due to the terminology used? Its not your employee contribution that you want to increase - employee contributions are a set %.What you want to do is make an additional voluntary contribution (AVC). It's possible that if you were talking to someone who deals with HR/Payroll in such a small company that they may not really understand pensions so didn't realise what you are asking.
    Originally posted by tizerbelle
    Ah, now that is very interesting. I wasn't aware of that terminology. I will try again!

    Many, many thanks!
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