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  • FIRST POST
    • klew356
    • By klew356 9th Apr 18, 10:45 AM
    • 308Posts
    • 1,809Thanks
    klew356
    auto enrolment now pension v ???
    • #1
    • 9th Apr 18, 10:45 AM
    auto enrolment now pension v ??? 9th Apr 18 at 10:45 AM
    In need of advice,

    In April 2018 our pension contributions go up to 3% and the employer will put in the minimum 2%, up until now we only had to put in 1% as did the employer but i upped mine early to 3% back in 2015. I have just requested from 1st of April they up my contribution to 5%.
    Have i done the right thing? i donít want to completely give up the auto enrolment pension because of the benefits of employer contributions. It is a NOW pension. However should i be contributing to another pension outside of this and use the extra 2% that i have just asked them to put in my now pension to this? This is the only pension i have and it only started i think in 2014
    In April 2019 our contribution will have to be 5% anyway
Page 1
    • PeacefulWaters
    • By PeacefulWaters 9th Apr 18, 10:51 AM
    • 8,318 Posts
    • 10,670 Thanks
    PeacefulWaters
    • #2
    • 9th Apr 18, 10:51 AM
    • #2
    • 9th Apr 18, 10:51 AM
    First point is always optimise employer contributions. That you're doing.

    If you can get cheaper charges and/or better investment funds out of alternatives, there is a case for putting any excess elsewhere. But you may prefer the simplicity of everything in one place.

    Finally, 7% isn't a huge overall contribution to retirement. I'd suggest accelerating your own contributions further if finances allow.
    • klew356
    • By klew356 11th Apr 18, 8:39 AM
    • 308 Posts
    • 1,809 Thanks
    klew356
    • #3
    • 11th Apr 18, 8:39 AM
    • #3
    • 11th Apr 18, 8:39 AM
    thank you for your reply, I aim to see how i get on with the 5% which comes out the end of april then aim to up it again in the summer, i am always trying to save hard as eventually would like to buy a house but normal life and bills do get in the way but i am making progress
    • xylophone
    • By xylophone 11th Apr 18, 10:52 AM
    • 26,496 Posts
    • 15,735 Thanks
    xylophone
    • #4
    • 11th Apr 18, 10:52 AM
    • #4
    • 11th Apr 18, 10:52 AM
    i am always trying to save hard as eventually would like to buy a house
    Are you eligible for LISA?

    https://www.moneysavingexpert.com/savings/lifetime-ISAs

    Contribute as much to your pension as gets you the maximum employer contribution and save the rest towards the house purchase, increasing your pension contributions once you have the house?
    • klew356
    • By klew356 11th Apr 18, 11:16 AM
    • 308 Posts
    • 1,809 Thanks
    klew356
    • #5
    • 11th Apr 18, 11:16 AM
    • #5
    • 11th Apr 18, 11:16 AM
    thank you that does make sense, i currently save into a help to buy isa and a savers account
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