Pension - how much is your employer contributing towards it?

apatia77

apatia77

apatia77

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Pension - how much is your employer contributing towards it?

I just want to know what other people get.

My company only pays 3% and I think this is the very minimum, I know nothing will ever change here and I don't even have a pension scheme as I can't afford 3% or anything really going from my salary.

I just hope that I will not be forced into paying towards another pension as it is planned in the next few years.
 
Self employed -- I get sweet nothing!!

You should be working towards a pension fund of at least £500,000 (in todays money) if you don't want to live like a jippo throughout your final years ..
 
I get sweet nothing!!
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You'll be fine with your 170k a year, 8 houses.... :)

Lucky enough to have a pension scheme whereby I get just over 1/2 basic pay at retirement plus 2.5x pay gratuity. Looking at the future, all things being equal it should be ok considering mortgage will be paid off before I retire. Lots can change though in 20 years...
 
britboy4321 said:
Self employed -- I get sweet nothing!!

You should be working towards a pension fund of at least £500,000 (in todays money) if you don't want to live like a jippo throughout your final years ..
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£500,000 - you are having a lough right? Maybe this is possible when employees pay around 10% of their salaries and they get around 20% from employers, I think this is more like public sector pension rather than private sector pension.
 
My company match my contributions £ for £ up to 20% of your salary.
So I'm currently paying in around £120 a month and they match that.

Personally I've had a pension since I was 18 and have always contributed - obviously more so as my salary has increased.
With fingers crossed that all means I'll be able to retire early with a good lump sum and a fair monthly amount.
 
apatia77 said:
£500,000 - you are having a lough right? Maybe this is possible when employees pay around 10% of their salaries and they get around 20% from employers, I think this is more like public sector pension rather than private sector pension.
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The average public sector pension is £5k a year atm.
 
apatia77 said:
I just hope that I will not be forced into paying towards another pension as it is planned in the next few years.
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National Employment Savings Trust (NEST)or previously known as pension accounts are due to be phased in around 2012 for large employers and 2015 for smaller employers (anyone with 5 full time employees or more)

You will be automatically enrolled into them with a contribution of 4% from you, 3% from your employer and 1% from the government. ALL employees will be enrolled however you can immediately opt out if you wish.
 
You should be topping up your pension to get to £500,000 todays money at retirement age whatever your employer puts in there.

Just do the maths - it is VERY VERY important you realise what lifestyle you will have when you retire, before you get there, so you're not panicking over heating bills each winter! An annuity (inflation linked, taken at 65 years old,remaining partner gets 50% when the first person dies, 2 non-smokers)) will get you maybe 3.5% per annum.

Thats £17500 per year 'todays money' BEFORE TAX you will be living off when you retire.

On a £500,000 pension pot.

So I stand by the horrible, horrible facts .. you need at least a £500,000 pension pot (todays money), or you're going to live like a pauper. Start topping up now for goodness sake!
 
Easy to say, I'm on £17.000 a year now (still better than working for minimum wage), I pay £550 + bills p/m for accommodation, then car insurance, petrol, food, some other outgoings, I can't really say that I can afford paying a lot toward my pension if anything at all.
 
britboy4321 said:
You should be topping up your pension to get to £500,000 todays money at retirement age whatever your employer puts in there.

Just do the maths - it is VERY VERY important you realise what lifestyle you will have when you retire, before you get there, so you're not panicking over heating bills each winter! An annuity (inflation linked, taken at 65 years old,remaining partner gets 50% when the first person dies, 2 non-smokers)) will get you maybe 3.5% per annum.

Thats £17500 per year 'todays money' BEFORE TAX you will be living off when you retire.

On a £500,000 pension pot.

So I stand by the horrible, horrible facts .. you need at least a £500,000 pension pot (todays money), or you're going to live like a pauper. Start topping up now for goodness sake!
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My company is stopping the final salary pension scheme shortly. The above doesn't make good reading about how much i need to save.
 
bleh... I'm almost 30 have NO pension whatsoever, not been in a position to contribute towards one previously for various reasons... my current employer I think puts in 9% but I won't be here long enough to make it worthwhile. I'm pretty much screwed.
 
Rroff said:
bleh... I'm almost 30 have NO pension whatsoever, not been in a position to contribute towards one previously for various reasons... my current employer I think puts in 9% but I won't be here long enough to make it worthwhile. I'm pretty much screwed.
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In the same boat didn't even think of starting one till now im 28.

been employed for 11years with the same company
 
No employer contribution.

To be honest I've been thinking more and more about canning it - give it's current value I'd have more if I'd put the cash under the mattress and learning that I could only expect a 3.5% annuity is a kick in the teeth.

If I retire at 65 (big if) I could only expect another 20 years, I doubt very much the male average is more and certainly isn't in my family.

So if for £500,000 I'd only get 17k pa, and building up this pension pot is slower than stuffing cash under the mattress, why am I bothering?

I'd currently, and by all appearances will be better off, putting what I currently contribute to a pension into tax free savings or even better into a BTL mortgage.
 
I pay 5% company 10%, they reckon when i retire it will be worth roughly £4-5k a year.. woooooo easy times!

Glad i bought a buy to let house 10 years ago when prices were sensible, the rent is tax deductable from the mortgage interest and with other reductions it's little / no cost per year. It will have paid itself off in 15 years and i will own another house for the hassle of managing it yearly..... Should add another £5k year to live on.

Still be living like a pauper and not having the 4-6 foreign holidays a year i would expect when i retire.
 
Looking at current annuity rates I'd need a pot of 150k to get £500 a month to live on.

To get that I'd looking at about £400 a month, a considerable portion of my available income.

If however I sunk £550 a month into a mortgage for a BTL (100k will buy a nice little 3 bed close to schools+amenities here) I could let it out for about £500 judging by current rates.

Assuming 3/4 occupancy (hopefully more but still) I'd be paying £187 a month and once the mortgage was paid off have a stable income comparable to a considerably more expensive pension.

A pension pot they are probably investing in property firms doing much the same :o

Maintanance is a concern and there could be considerable one off expenses but I just can't see a pension ever being anywhere near good value given other investment opportunities out there.
 
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