Pension stuff

I pay 10%, company matches 4%, so 14% total.

My view on pensions:
- Make sure you're getting the maximum employer contribution.
- Only pay more than that if you're a higher rate tax payer.
 
12.5% into my pension (gross) and then I put about 20% of my net pay into a S&S ISA. I don't plan to wait for state pension age to retire.
 
I pay 3% company pays 3%. Might ask at my next P&D (next week) if they plan to increase this as it's pretty poor compared to a lot of companies.

If I login to my pension account I can switch between a myriad (100s) of different fund options options.. argh :/ :p
 
I'm on an NHS pension, so I pay in 9.3% and my employer puts in about 15%. I say they put that in, but in reality it's completely made up money that's got to be paid by taxpayers. It's career average earnings so the amount paid out when/if I retire should be quite nice. I'm also saving regularly into a S&S ISA as I intend to be one of those old people with plenty of cash and no dependants.
 
I pay 6% via salary sacrifice in, employer pays 22.5% in. In addition I can invest 2.5% of my gross salary in to a share scheme and receive 7.5% in shares. FTSE 100 company, dividends get reinvested in additional shares for me. Great life insurance package and Medicare too.
 
rubberduck said:
I pay 6% via salary sacrifice in, employer pays 22.5% in. In addition I can invest 2.5% of my gross salary in to a share scheme and receive 7.5% in shares. FTSE 100 company, dividends get reinvested in additional shares for me. Great life insurance package and Medicare too.
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Is this the Twitch gig? Sounds pretty lucrative tbh.
 
I pay a set £ in per month, as I own the business and pay myself a low salary amount - so a % contribution doesn't really mean anything. Hoping that company performance is such that I can max out my pension contributions this year and next, and so on. I've got private life insurance and I provide company health insurance for the entire staff (there's just two of us :p).
 
413x said:
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!
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It really depends on your investment returns, since your young it's worth putting your money into higher risk scheme's that yield higher annual returns which is what's I've done for the last 5 years and my pension has averaged 14.4% ROI year on year, at that rate I can retire when I'm 56! Of course I don't expect that rate of return to continue but 7% over the life of pension isn't unreasonable IMO. The calculations you were probably looking at were based on 5%, that 2% difference may seem tiny but over the lifetime of a pension it can add up to a lot of money. Put this way if i retire in Dec-47 at 5% average growth my pension would be worth 528K (assuming consistent contributions), at 7% the same pension is worth 814K. That would mean the difference between an annual annuity of 26k and 41k or I could retire 5 years earlier with the same 26k a year annuity (maybe not as annuities are less if you retire younger).
 
I need to look into mine a bit further.

I pay 10.9% (Matched by my employer)

I'm 33. Realised yesterday, I can't draw it until i'm 67..... sometimes wonder if it's worth it.
 
Freddie1980 said:
It really depends on your investment returns, since your young it's worth putting your money into higher risk scheme's that yield higher annual returns which is what's I've done for the last 5 years and my pension has averaged 14.4% ROI year on year, at that rate I can retire when I'm 56! Of course I don't expect that rate of return to continue but 7% over the life of pension isn't unreasonable IMO. The calculations you were probably looking at were based on 5%, that 2% difference may seem tiny but over the lifetime of a pension it can add up to a lot of money. Put this way if i retire in Dec-47 at 5% average growth my pension would be worth 528K (assuming consistent contributions), at 7% the same pension is worth 814K. That would mean the difference between an annual annuity of 26k and 41k or I could retire 5 years earlier with the same 26k a year annuity (maybe not as annuities are less if you retire younger).
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Thanks will get this switched to high risk
 
I pay in 10% and my employer pays in 15% (the maximum). Anything above that I am investing into a house and paying off the mortgage so we can hopefully downsize and release equity when older.

It does concern me how many people are putting little to nothing into a pension. Be interesting to see what happens when my generation retire (currently 32) and lots of people are trying to survive on the state pension or pensions with 3% or less contributions. Us millennials have generally become accustomed to having the luxury goods such as the latest phone/tablet/TV , foreign holidays etc but don't seem to have the same drive to safe for retirement like many of our grandparents did.
 
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Freddie1980 said:
It really depends on your investment returns, since your young it's worth putting your money into higher risk scheme's that yield higher annual returns which is what's I've done for the last 5 years and my pension has averaged 14.4% ROI year on year, at that rate I can retire when I'm 56! Of course I don't expect that rate of return to continue but 7% over the life of pension isn't unreasonable IMO. The calculations you were probably looking at were based on 5%, that 2% difference may seem tiny but over the lifetime of a pension it can add up to a lot of money. Put this way if i retire in Dec-47 at 5% average growth my pension would be worth 528K (assuming consistent contributions), at 7% the same pension is worth 814K. That would mean the difference between an annual annuity of 26k and 41k or I could retire 5 years earlier with the same 26k a year annuity (maybe not as annuities are less if you retire younger).
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This calculator estimates 2.5pc above an inflation rate of 2.5pc.
So yes, it's Conservative! Makes sense to scare people!

I tried one with 5pc and it made a hell of a lot of difference! Damn that compound interest!
 
Your employer will probably only match your contribution up to a maximum. However, they may offer a salary sacrifice option on top of this where you will get tax relief on your pension contributions at your marginal rate (20%/40%/45% depending on your earnings) and they may also contribute their employer national insurance savings worth another 13.8%. So it can be incredibly tax efficient to make top-up pension contributions. Each year you can contribute the maximum of £40k (this tapers down to £10k for those earning over £150k pa but you can carry forward previous years of unused earnings for up to 3 years) and your annual earnings each year. But if you are contributing via salary sacrifice you are also limited in that you must continue to earn at least the minimum wage.
 
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