Pension stuff

Diddums · 9 Jan 2018 at 08:00

I want to increase my pension contributions so when I retire I can buy a yacht and a helicopter and a private jet and all that.

How much do you guys pay every month? Is it percentage based or a value of your choice? When I was at BT I think the max they allowed was 5% but here I can do 100% of my salary if I want. Is there a limit on what the company needs to pay, or do they have to match every penny I pay even if I go for (a hypothetical) 100%?

Hmmmmm.

RoboCod · 9 Jan 2018 at 08:50

I think there are a couple of threads about this mate. The general consensus was, put as much as you can afford into your work pension and your employer should match it?

Otherwise a SIPP is the preferred option. Mind you, I'm clearly no expert!

KingOfTheDaves · 9 Jan 2018 at 09:00

Usually a company will match at a certain ratio whether 1:1 or 2:1 etc. But there will be an upper limit.

For example, they could match your contributions up till 5%. But if you pay in more it's not matched.

But certainly if you can afford it put in more.

Yaayuh! · 9 Jan 2018 at 09:05

I'm currently sat at 4%, the maximum the company matches (small company).

I will increase beyond this soon and i'm looking at alternative schemes.

bayo000 · 9 Jan 2018 at 09:19

Diddums said:
Is there a limit on what the company needs to pay, or do they have to match every penny I pay even if I go for (a hypothetical) 100%?

There's a nice little table for you there that shows minimum contributions by you and employer. Anything over that is up to you and your employer so check your contract/ employee handbook.
https://www.gov.uk/workplace-pensions/what-you-your-employer-and-the-government-pay

Martynt74 · 9 Jan 2018 at 09:30

My company pay in 5% whether i put in anything or not. So i just take the free money and then pay into a private pension seperately which i manage.

Skiddley · 9 Jan 2018 at 09:49

Company will typically match up to a % limit, but every company is different. For example I pay in 10%, my employer only match up to 8%. So the 2% extra I pay are considered as AVC (additional voluntary contributions). Total contrbs are therefore 18%.

I'm not aware of a personal contributions limit.

Some also offer a % match if you allocate a % of bonus payments to your pension in addition. Mine match 5%, so I pay 5% of bonuses in, to effectively double contributions.

Take any free money you can.

krooton · 9 Jan 2018 at 10:15

8% + 8% matched

swain90 · 9 Jan 2018 at 10:20

We get 8% matched plus 2 making it 10 which is really good, however if we wanted we could put our entire salary in if we wanted

Maccy · 9 Jan 2018 at 10:38

My company pays 5% and I do 3%, need to check how the fund(s) is doing actually.

Mirmo · 9 Jan 2018 at 11:25

I pay 6% and my employer pays 26%! It's a LGPS (East Riding Pension Fund).

However, I've never quite believed it but for the life of me I can never get anyone on the phone to admit it all goes into my pot.

Wage slip wise, the employee pension and employee pension figures do equate to 6% and 26%.

Anyone else in a LGPS?

Martynt74 · 9 Jan 2018 at 11:26

Do you not get a yearly statement?

Mirmo · 9 Jan 2018 at 11:31

Marvt74 said:
Do you not get a yearly statement?

I do but it's awful. They don't have a facility to login to your account online either.

The statement only has my projected yearly pension if nothing changes figure on it really.

Kemik · 9 Jan 2018 at 11:37

Mirmo said:
I do but it's awful. They don't have a facility to login to your account online either.

The statement only has my projected yearly pension if nothing changes figure on it really.

Are you sure it isn't a defined benefit scheme?

413x · 9 Jan 2018 at 11:49

I put in 10, my employer puts in 10.
Even on 32k a year at 32yo apparently my state and work pension at this rate won't be enenough to 'maintain my standard of living' in the calculators.

I put more in than so many people. Its a scary thought for the future!
I know people who don't own a house, have kids, have no savings or pension at my age. I couldn't handle it!

Mirmo · 9 Jan 2018 at 11:51

Kemik said:
Are you sure it isn't a defined benefit scheme?

Ahh it is!

Diddums · 9 Jan 2018 at 11:51

I asked our payroll what the limit is of our company's contributions, if there is one, and this is the answer I got :confused:

Will pull my finger out and do some actual reading later, I should probably know this stuff tbh.

novaenough · 9 Jan 2018 at 11:56

Mirmo said:
I pay 6% and my employer pays 26%! It's a LGPS (East Riding Pension Fund).

However, I've never quite believed it but for the life of me I can never get anyone on the phone to admit it all goes into my pot.

Wage slip wise, the employee pension and employee pension figures do equate to 6% and 26%.

Anyone else in a LGPS?

I'm in a LGPS.
From a quick look at their website I'd suggest that you're on a career average scheme now, you might've been on a final salary scheme previously but that all changed.
You don't have a personal pension pot, you all pay into the scheme and then get out whatever the rules of the scheme say.
Your annual statement should explain how it works, mine certainly does, if not have you looked at the faq section on their website, and if that still doesn't help give them a call and ask them to explain it to you.

krooton · 9 Jan 2018 at 11:58

Yeah, I was late to the party and if I maintain the 8%/8% and stay on this salary, I'd only be getting a combined £14k annual (when the average target would be £22k)

Interestingly:

Pot start date: March 2016
Current pot value: £15k
My gross contribution: £5.3k

So I have tripled my money over just under 2 years.

I also put £270 in to Crypto back in November, which is now worth £2k, lol

Mirmo · 9 Jan 2018 at 12:02

novaenough said:
I'm in a LGPS.
From a quick look at their website I'd suggest that you're on a career average scheme now, you might've been on a final salary scheme previously but that all changed.
You don't have a personal pension pot, you all pay into the scheme and then get out whatever the rules of the scheme say.
Your annual statement should explain how it works, mine certainly does, if not have you looked at the faq section on their website, and if that still doesn't help give them a call and ask them to explain it to you.

I can't quite believe it's taken me this long to actually read about the pension scheme I'm a member of!

So it looks like I'm on a defined benefit scheme and each year 1/49th of my earnings get added to my yearly pension when I retire, plus an inflation adjustment. So it looks like the actual percentage my employer pays is irrelevant to me.

Thanks guys!