Pension

[katyazamo]

I've got a bit of a daft question and hoping someone can answer!

I pay in 5% and employer pays 3%, so the mandatory 8%. Not enough, given the half your age rule! What's the best way to go about contributing more? Should I ask my employer to bump up my contributions to, for example, 8%, and try and negotiate for them to increase theirs to 5%? Or should I just set up a monthly direct debit that comes out of my net pay? I know it's better to do it so it comes out pre-tax but my employer are pretty stingy sadly.

 

[OhMyGaad]

I have an NHS pension that I’ve had for the last 5 years - I started paying in as soon as I qualified as a nurse at 21. I’m now band 7 and contribute 9.3%, whilst I believe the NHS contributes 20%
It’s a great pension scheme compared to others and I feel very lucky to work in the NHS. The only downside is it is linked to state pension age, so I won’t be able to get it until I’m at least 68 (if not older!) so I’ve started saving money in a LISA - the idea is for me to save a lump sum that I can access when I am 60 so I can afford to work part time for the last few years until I get my pension

A few of my colleagues in their 20s like me have opted out of their pension as they’d rather have the money now… I’ve tried telling them how important it is and it’s the best free money they’ll ever have but they just don’t listen!

I didn't realise the employer contributed so much. I thought they matched the contribution? That sounds like a good idea with the LISA. I will do the same. Who did you open with?

 

[Hertfordshire_home]

I've got a bit of a daft question and hoping someone can answer!

I pay in 5% and employer pays 3%, so the mandatory 8%. Not enough, given the half your age rule! What's the best way to go about contributing more? Should I ask my employer to bump up my contributions to, for example, 8%, and try and negotiate for them to increase theirs to 5%? Or should I just set up a monthly direct debit that comes out of my net pay? I know it's better to do it so it comes out pre-tax but my employer are pretty stingy sadly.

Your employer won’t increase their contributions, as it will likely be company wide amounts that they pay depending on your level. If you got a promotion you might be able to negotiate but it would likely mean you got less of a pay rise ie the net cost to the employer wouldn’t change.

In terms of your contributions I would say it depends how complex you want it to get. The simple way would be to increase your own contributions, which would have some tax/NI benefits.

The other option is to pay into another account (similar to what I do with Charles Stanley direct) from your post tax earnings. This would give you the advantage of choosing the funds to match your risk attitude, or even put it in specific shares.

 

[ChilliBean]

I didn't realise the employer contributed so much. I thought they matched the contribution? That sounds like a good idea with the LISA. I will do the same. Who did you open with?

I only found out the other day when I did some Googling. I’d always been told the NHS pension was very good and I should always pay into it, but I didn’t realise how good!

I opened my LISA with Moneybox and it’s pretty good, I put about £100 a month in at the moment but will increase when I am able to, I have 23 years left to pay into it (I think you stop paying into it at 50) so should have a nice lump sum in there by then

 

[katyazamo]

Your employer won’t increase their contributions, as it will likely be company wide amounts that they pay depending on your level. If you got a promotion you might be able to negotiate but it would likely mean you got less of a pay rise ie the net cost to the employer wouldn’t change.

In terms of your contributions I would say it depends how complex you want it to get. The simple way would be to increase your own contributions, which would have some tax/NI benefits.

The other option is to pay into another account (similar to what I do with Charles Stanley direct) from your post tax earnings. This would give you the advantage of choosing the funds to match your risk attitude, or even put it in specific shares.

Thank you! I work for a small business so there might be room to negotiate but like I say, they're pretty stingy...although I might raise it with them in my next annual review. It looks like I can increase my contributions but my employer needs to arrange it, so I'll ask them to do it. I do have a private pension with PensionBee (they tracked down and transferred a couple of long-forgotten pensions) so I can set up a direct debit with them.

 

[Saddlesoap]

Thank you! I work for a small business so there might be room to negotiate but like I say, they're pretty stingy...although I might raise it with them in my next annual review. It looks like I can increase my contributions but my employer needs to arrange it, so I'll ask them to do it. I do have a private pension with PensionBee (they tracked down and transferred a couple of long-forgotten pensions) so I can set up a direct debit with them.

I increased my contributions a while ago. It appeared very easy, I just emailed manager to say how much I wanted to increase it and it was done. Think it must be easy to apply on a payroll system.

 

[Satisfying Click]

Thanks to this thread I managed to pull my finger out and spoke with an advisor who gave me loads of useful information about my pension. It was really reassuring and I feel more confident in chipping away at other things like my mortgage and looking into investments.

 

[Millyve]

I have 9 years in a final salary pension which I’m very fortunate for only being 30 now it’s very rare, was abit pissed when it was closed but I’m very greatful for the contributions I’ve got already.
I’m now in a new scheme which is a total of 21% mine & my employers contributions combined, my contributions have increased massively since going into the new scheme but I’ve always been one for ensuring I’m settled for the future, fortunately had good advice from others and immediately started putting away money I wasn’t use to.
Also contribute each month to a LISA will look at increasing each month soon won’t be a massive amount but like I get X amount each month for free it will pay for a luxuary holiday when I come to retire.

What age do people want to retire at? I’m hoping by 60 which yes is very unlikely nowadays.

 

[Twinks10]

Thanks to this thread I’ve contacted a pension provider from my former employer and I hadn’t changed my address with them so have had no documents for years and had forgotten all about it.
Sent off some docs to verify my identity and confirm my current address so I should now get the plan info and statements etc so I’ll know where I’m at. So thanks everyone

 

[justbeingnosy98]

What age do people want to retire at? I’m hoping by 60 which yes is very unlikely nowadays.

I’m hoping 60 too, only 30 more years of work to go..!!!

I’m upping my pension contribution next month to bring it to 20% contributions between me and my employer because of this thread. It’s so good to talk about these things but I find it hard to with my friends!

 

[hydeist]

I have 9 years in a final salary pension which I’m very fortunate for only being 30 now it’s very rare, was abit pissed when it was closed but I’m very greatful for the contributions I’ve got already.
I’m now in a new scheme which is a total of 21% mine & my employers contributions combined, my contributions have increased massively since going into the new scheme but I’ve always been one for ensuring I’m settled for the future, fortunately had good advice from others and immediately started putting away money I wasn’t use to.
Also contribute each month to a LISA will look at increasing each month soon won’t be a massive amount but like I get X amount each month for free it will pay for a luxuary holiday when I come to retire.

What age do people want to retire at? I’m hoping by 60 which yes is very unlikely nowadays.

I'm in a defined benefit/final salary scheme and the rarity of them makes me never ever want to change job until I retire even though I'm only in my 30s