Pension contribution

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tali
tali Posts: 709 Forumite
in Pensions, annuities & retirement planning
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?

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  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    tali wrote: »
    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?

    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
    mgdavid Posts: 6,705 Forumite
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    tali wrote: »
    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?

    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
    xylophone Posts: 44,418 Forumite
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    Which auto enrolment scheme is your employer using?
  • tali
    tali Posts: 709 Forumite
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    Brynsam wrote: »
    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?


    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
    Brynsam Posts: 3,643 Forumite
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    tali wrote: »
    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%

    Great. So what's the problem?
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    tali wrote: »
    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%

    So with tax and NI relief you'll near as dammit double your money. You'd be mad not to.
  • greenglide
    greenglide Posts: 3,301 Forumite
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    and NI relief
    Who mentioned salary sacrifice?

    Without salary sacrifice there is no saving of NI.
  • tali
    tali Posts: 709 Forumite
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    Brynsam wrote: »
    Great. So what's the problem?

    I didn't know of the 2% employer contribution until after my original post
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