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How much do you pay into your pension as a percentage of your salary?

(37 Posts)
AntoinetteCosway Sun 09-Feb-14 14:23:36

DH's new employer pays in 7% and we're also paying in 7%. We're both 30. I'm a self-employed tutor so my teacher's pension isn't getting anything at the moment. We don't know whether to pay more into his to make up for the fact that mine's not being fed. I earn very little (less than £10k a year) and he earns £39k. After child care vouchers, tax, NI and 7% pension his monthly income is under £2k a month. Mine varies a lot-sometimes it's only a couple of hundred and sometimes more depending on the time of year. We are on a tight budget so to lose any more of his salary to the pension would make life quite tough but I'm worried about it being even tougher when we're old!

Creamycoolerwithcream Sun 09-Feb-14 14:28:11

I think the guidelines are the percentage of half your age. So as you are 30 then it's 15%.

Creamycoolerwithcream Sun 09-Feb-14 14:29:40

Actually I think that's if you start a pension a 30. How long has your DH been paying into one?

AntoinetteCosway Sun 09-Feb-14 14:29:53

I've read that as a guide for if you're just starting out with a pension-is it meant to be a guide regardless of how long you've been paying in? I paid into mine from 22-29 and DH from 22 onwards. P

Tiredemma Sun 09-Feb-14 14:31:26

Im 36 and have paid into a pension since I was 23. I have an NHS Pension that I pay 9% into.

AntoinetteCosway Sun 09-Feb-14 14:33:19

Tired is that the total with your employer's contributions?

bigkidsdidit Sun 09-Feb-14 14:38:21

I pay 7.5% and my employer matches it. I earn almost 40k but with that, student loan, childcare vouchers, car parking spot etc I take home under 2k a month too. It is very depressing!

Tiredemma Sun 09-Feb-14 14:39:01

No- My employer contributes 14%

Tiredemma Sun 09-Feb-14 14:39:43

I will never leave the NHS- solely because of the pension

bigkidsdidit Sun 09-Feb-14 14:40:33

Id be careful about paying more into his pension btw - if he dies first, it probably isn't all transferable. You should check, but mine transfers 30% only to named spouse. Savings in your name might be better?

AntoinetteCosway Sun 09-Feb-14 14:41:07

Tired that is great!

Bigkids it sounds like our situations are very similar.

nulgirl Sun 09-Feb-14 14:41:28

I pay 6% and my employer pays 20%. I'm aware that this is a very generous system so think they'll probably close the scheme soon. They also pay 6 month full pay for maternity. Good employer (alth

AntoinetteCosway Sun 09-Feb-14 14:42:12

bigkids that is a really good point. We definitely need to look into that-it hadn't occurred to me.

nulgirl Sun 09-Feb-14 14:42:21

Finishing my point

although everyone else hates them (a bank) they are good employers.

AntoinetteCosway Sun 09-Feb-14 14:43:54

nul that really is good!

TalkinPeace Sun 09-Feb-14 15:53:19

If you have access to a " defined benefit " pension :
teachers / NHS / Civil service / MOD
and a very few companies still provide them
pile in as much money as you possibly can, buy added years, do whatever

if the only pension you have access to is a " defined contribution " pension, make sure all your other tax efficient savings (ISAs in particular) are filled up before sinking funds into an almost unregulated moneypit.

The max charges on DC schemes were meant to be regulated from 31st March this year, but enough of the men in suits took enough politicians out to lunch that its been deferred again ....

Figster Sun 09-Feb-14 15:55:21

Private sector employer here I pay 3% they pay 6%

LoveIsTheDrug Sun 09-Feb-14 15:57:33

Same as tiredemma - nhs pension.

upyourninja Sun 09-Feb-14 16:06:04

Not for profit company here - they pay 10% and I currently don't pay any. I started paying in at 22 smile

AntoinetteCosway Sun 09-Feb-14 16:07:11

I have a Teacher's Pension but I think I can only contribute to it while I'm employed by a school which is a pain in the neck. I will call them and double check though.

Notmadeofrib Sun 09-Feb-14 18:31:59

DC pensions are transferable to a spouse on death at 100%.
Only FS or DB funds can restrict death benefits

bigkidsdidit Sun 09-Feb-14 18:35:27

Oh, ok. Mine is final salary.

I put above that I pay 7 and my employer matched it. My mum (in the same scheme) just informed me I pay 7.5% and my employer pays 16%! Was I wrong grin

AntoinetteCosway Sun 09-Feb-14 20:26:09

Nice mistake to make though grin

Supermum222 Mon 10-Feb-14 12:17:25


I am NHS. I have paid into my pension since 1996 although the last 9 years I have been part time (kids!!). I am not sure whether to pay more in or not (our mortgage finishes in 3 yrs). I will probably be doing more hours soon so could afford to throw more at it but I always got the impression that AVC's were expensive and that money would be better invested elsewhere??

LydiaCrawford Wed 12-Feb-14 18:37:19

I pay 8.8% and my employer pays 14.1%
DH pays 10% and his employer 10%

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