Pension fund performance - do you monitor yours, how is it doing, do you actively change it?

Well either payroll is wrong or your pension provider is incorrectly adding the 20% relief.
This is what I believe has/is happening. Tad concerning.
Not sure how to handle this.

I mean if I'm right.. What if some people have been in this position for years?
By that I mean other employees?
 
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This is what I believe has/is happening. Tad concerning.
Not sure how to handle this.

I mean if I'm right.. What if some people have been in this position for years?
By that I mean other employees?
Probably better to sort it out now than let it continue and get worse if true. I guess the pension scheme will have to repay it. Wonder what happens to the gains though!
 
Probably better to sort it out now than let it continue and get worse if true. I guess the pension scheme will have to repay it. Wonder what happens to the gains though!

What if I drop others in it who might have been on this for years?
Its no biggy for me. It's about 600 quid that would be reversed from my pension as I haven't been here long.

But if it's company wide it could change people's life plans
 
What if I drop others in it who might have been on this for years?
Its no biggy for me. It's about 600 quid that would be reversed from my pension as I haven't been here long.

But if it's company wide it could change people's life plans
Tbh I still suspect payroll is wrong rather than the pension scheme because your contribution is showing under Deductions :) But I've only had salary sacrifice and relief at source schemes in the past so can't be sure.
 
Tbh I still suspect payroll is wrong rather than the pension scheme because your contribution is showing under Deductions :) But I've only had salary sacrifice and relief at source schemes in the past so can't be sure.
I thought this.
But my tax is correct.

If I subtract pension from basic pay.. Then work out the tax from this.. Its spot on.
 
Is 62 a made up number or is it correct in terms of ratio to the others?
That's about right - should be £62.50 if it's a contribution of £250.

I thought this.
But my tax is correct.

If I subtract pension from basic pay.. Then work out the tax from this.. Its spot on.
on your payslip - what does it say for 'Taxable pay' for this period - is it the same as your monthly salary or is it the salary - employee pension contribution

eg, on mine it says something like 'salary 4000' and in deductions has 'pension' 400 and in this period says 'taxable payments' 3600.

On my pension statement it has a contribution of 400 with no additional relief.

if you salary = taxable pay then you get 20% added to your pot and need to claim the extra from UK Gov
If your salary - pension = taxable pay then you are paying from gross salary your pension and should have no top up from the government in your pension.

Think that's the only 2 options possible.
 
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The naming confuses me. Why is net pay arrangement called so, when the pension contribution is taken from your gross pay first then tax applied on gross minus pension? Net pay arrangement makes it sound like you get taxed on your net pay, which you don't?
 
That's about right - should be £62.50 if it's a contribution of £250.


on your payslip - what does it say for 'Taxable pay' for this period - is it the same as your monthly salary or is it the salary - employee pension contribution

eg, on mine it says something like 'salary 4000' and in deductions has 'pension' 400 and in this period says 'taxable payments' 3600.

On my pension statement it has a contribution of 400 with no additional relief.

if you salary = taxable pay then you get 20% added to your pot and need to claim the extra from UK Gov
If your salary - pension = taxable pay then you are paying from gross salary your pension and should have no top up from the government in your pension.

Think that's the only 2 options possible.

It doesn't break down like that.
Monthly I have :

basic pay

Then under Deductions
Pension
NI
Tax

There is no "taxable pay" separate to "basic salary"

Putting into the online calculators my (basic - pension) provides a tax figure that is the same as on my payslip
Ie just putting in (basic) produces a tax figure higher than what I'm paying.
 
The naming confuses me. Why is net pay arrangement called so, when the pension contribution is taken from your gross pay first then tax applied on gross minus pension? Net pay arrangement makes it sound like you get taxed on your net pay, which you don't?
The net referred to is net after pension contribution.
...I know
 
It doesn't break down like that.
Monthly I have :

basic pay

Then under Deductions
Pension
NI
Tax

There is no "taxable pay" separate to "basic salary"

Putting into the online calculators my (basic - pension) provides a tax figure that is the same as on my payslip
Ie just putting in (basic) produces a tax figure higher than what I'm paying.
Maybe your P60 will help to clear it up which you should hopefully get in the next month or two, that should show a value for taxable pay as it's required for self assessment submission.
 
Does anyone with Scottish Widows know if there's a way to see a summary of your funds recent performance? I know I can lookup the fund datasheet directly but I'd prefer to to login and see a "your fund has gone up/down by £x in the last six months" kind of thing. My old Aegon pension does this nicely, as does my own ISA (Vanguard) but Scotish Widows just seems rubbish at hiding it away. I like to look for curiosity rather than anything.
 
Anyone getting ready to add a lump sum to their SIPP or workplace pension prior to the end of the FY?
I usually do but not sure I'm going to bother this year, I'm pretty happy with my employer + employee contribs as they stand. Contribution limit increased from £40k to £60k this year though...
 
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Does anyone with Scottish Widows know if there's a way to see a summary of your funds recent performance? I know I can lookup the fund datasheet directly but I'd prefer to to login and see a "your fund has gone up/down by £x in the last six months" kind of thing. My old Aegon pension does this nicely, as does my own ISA (Vanguard) but Scotish Widows just seems rubbish at hiding it away. I like to look for curiosity rather than anything.
Not really, you get a bit of info in their annual summary but everything appears to be smoke and mirrors. I've never actually tried calling them though.

Apparently their fund fees are negotiated with your employer so it's worth ringing them to see what they are, and if necessary transfer them out to your own supplier. It's something on my list to do.
 
Anyone getting ready to add a lump sum to their SIPP or workplace pension prior to the end of the FY?
I usually do but not sure I'm going to bother this year, I'm pretty happy with my employer + employee contribs as they stand. Contribution limit increased from £40k to £60k this year though...

Imagine having to worry about contributing 40 vs 60K of income to your pension. :)
 
Regarding the question about consolidating pensions... Is there a benefit in having multiple pots because you're able to dip into one and leave the others to continue to grow? Or is that irrelevant as you're not 'punished' for dipping into your pension? (Assume a DC scheme).

I'm a way off pension age so I have no idea what happens when you get to the point of using it!

I've got 2 pots at the moment; one for my current employer (which is a naff provider), and one which I've consolidated all my previous pots into.
 
Regarding the question about consolidating pensions... Is there a benefit in having multiple pots because you're able to dip into one and leave the others to continue to grow? Or is that irrelevant as you're not 'punished' for dipping into your pension? (Assume a DC scheme).

I'm a way off pension age so I have no idea what happens when you get to the point of using it!

I've got 2 pots at the moment; one for my current employer (which is a naff provider), and one which I've consolidated all my previous pots into.

I did the dipping in thing with a very small pot it was one that allowed more than 25% tax free cash (i was told to check all my pots for benefits like this) ideally i would have transferred every thing into this for the benefits but it wasn't allowed .
So as i had both daughters weddings coming up and wanted to keep a good savings buffer i cashed it out, the rest in to vanguard
regret it but its done now so..............
 
I put most of my wages into my pension, I then keep a portion in cash and shares.

You can only put 60k but you can't go below your tax free allowance. £72570 is the limit, what you can earn if you want to survive on tax free wage allowance.

It is very important not to go over 84k, if you do you need to look for another provider that is not linked and port over the cash.
Shares are normally returned but I still don't trust the system.

If you place 60k then you should open up new accounts with unrelated providers.

I'd love to put 60k in. But I also want to have some money for holidays and living in the here and now. Good advice though if you can afford it.
 
People think because it has a different name they are unrelated. That is not the case, you need to dig deeper.

I'm not sure what you mean?

Why would I leave myself with little left every month when I am the main earner of the household? I want to enjoy life now rather than sacrifice everything for my retirement. Give kids experiences etc...

Life is there to be lived. I've got at least 10-15 years to go before I consider retiring. My pot is decent as it is I'm not worried about living in a mansion in my later life. As long as I can pay the bills, travel to see my family, and keep supporting my children that's all that's important to me.
 
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Ok if you have an account with Lloyds and an account with Halifax, Bank of Scotland and Scottish Widows and a few others.
This is what I mean by related.

Your combined money is over 85k.
You lose anything over 85k, the fsfc protection only covers this amount.

If the does happen don't expect to get your 85k In a year or so, it could take 10 years or more (this depends on the level of accumulated industry's lose, if the lose is to big they too can go bust).

Do private pensions work the same way?
 
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