Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • tali
    • By tali 13th Apr 18, 9:09 PM
    • 695Posts
    • 74Thanks
    tali
    Pension contribution
    • #1
    • 13th Apr 18, 9:09 PM
    Pension contribution 13th Apr 18 at 9:09 PM
    Working part time i don't earn enough to auto enrol, but i want to contribute to a pension.
    My employer says i can do 3% of qualified earnings , or a fixed amount of at least 3% -which option would be be better (i can afford to put away above the 3%)
    However pension site says Your employer will not automatically enrol you into a workplace pension scheme but you can choose to join. If you do so, your employer will not be obliged to make contributions.
    So, if my employer doesn't make contributions , i assume there is no point starting the pension?
Page 1
    • Brynsam
    • By Brynsam 13th Apr 18, 10:07 PM
    • 1,573 Posts
    • 1,140 Thanks
    Brynsam
    • #2
    • 13th Apr 18, 10:07 PM
    • #2
    • 13th Apr 18, 10:07 PM
    Working part time i don't earn enough to auto enrol, but i want to contribute to a pension.

    So, if my employer doesn't make contributions , i assume there is no point starting the pension?
    Originally posted by tali
    Why do you want to start a pension? Presumably to have some savings in later life, made in a tax efficient way. Even if your employer doesn't contribute, why not do just that for yourself - what's the better alternative?
    • mgdavid
    • By mgdavid 13th Apr 18, 10:18 PM
    • 5,666 Posts
    • 4,996 Thanks
    mgdavid
    • #3
    • 13th Apr 18, 10:18 PM
    • #3
    • 13th Apr 18, 10:18 PM
    Working part time i don't earn enough to auto enrol, but i want to contribute to a pension.
    My employer says i can do 3% of qualified earnings , or a fixed amount of at least 3% -which option would be be better (i can afford to put away above the 3%)
    However pension site says Your employer will not automatically enrol you into a workplace pension scheme but you can choose to join. If you do so, your employer will not be obliged to make contributions.
    So, if my employer doesn't make contributions , i assume there is no point starting the pension?
    Originally posted by tali
    That means they don't have to, not that they won't.
    A decent employer will - have you asked them (nicely)?
    The questions that get the best answers are the questions that give most detail....
    • xylophone
    • By xylophone 14th Apr 18, 2:40 PM
    • 26,488 Posts
    • 15,730 Thanks
    xylophone
    • #4
    • 14th Apr 18, 2:40 PM
    • #4
    • 14th Apr 18, 2:40 PM
    Which auto enrolment scheme is your employer using?
    • tali
    • By tali 14th Apr 18, 7:35 PM
    • 695 Posts
    • 74 Thanks
    tali
    • #5
    • 14th Apr 18, 7:35 PM
    • #5
    • 14th Apr 18, 7:35 PM
    Why do you want to start a pension? Presumably to have some savings in later life, made in a tax efficient way. Even if your employer doesn't contribute, why not do just that for yourself - what's the better alternative?
    Originally posted by Brynsam

    The pension is being used as another layer of investment , as yes, i do have other savings and investments.
    Employer has said they will contribute 2%
    • Brynsam
    • By Brynsam 14th Apr 18, 8:12 PM
    • 1,573 Posts
    • 1,140 Thanks
    Brynsam
    • #6
    • 14th Apr 18, 8:12 PM
    • #6
    • 14th Apr 18, 8:12 PM
    The pension is being used as another layer of investment , as yes, i do have other savings and investments.
    Employer has said they will contribute 2%
    Originally posted by tali
    Great. So what's the problem?
    • AnotherJoe
    • By AnotherJoe 14th Apr 18, 9:58 PM
    • 10,589 Posts
    • 12,119 Thanks
    AnotherJoe
    • #7
    • 14th Apr 18, 9:58 PM
    • #7
    • 14th Apr 18, 9:58 PM
    The pension is being used as another layer of investment , as yes, i do have other savings and investments.
    Employer has said they will contribute 2%
    Originally posted by tali
    So with tax and NI relief you'll near as dammit double your money. You'd be mad not to.
    • greenglide
    • By greenglide 14th Apr 18, 10:49 PM
    • 3,164 Posts
    • 2,059 Thanks
    greenglide
    • #8
    • 14th Apr 18, 10:49 PM
    • #8
    • 14th Apr 18, 10:49 PM
    and NI relief
    Who mentioned salary sacrifice?

    Without salary sacrifice there is no saving of NI.
    • tali
    • By tali 15th Apr 18, 12:52 AM
    • 695 Posts
    • 74 Thanks
    tali
    • #9
    • 15th Apr 18, 12:52 AM
    • #9
    • 15th Apr 18, 12:52 AM
    Great. So what's the problem?
    Originally posted by Brynsam
    I didn't know of the 2% employer contribution until after my original post
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

331Posts Today

2,152Users online

Martin's Twitter