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What percentage does your employer pay into your pension each month?

(64 Posts)
Star2015 Thu 11-Jan-18 07:40:10

I may be in a position to negotiate a better % paid into my pension each month but have no idea what a ‘good’ percentage is... at present it’s at 1% rising to 3% then 5% over the next 3 years.

What percentage should I be aiming for when it comes to negotiation?

I’m 33 and only have a very basic amount saving in previous pension pots from employers so I’m thinking this will be my ‘main’ pension pot when I retire.

Thanks!

Ifailed Thu 11-Jan-18 07:43:59

The more the better! A recommended amount for someone your age is 16% of your salary, that's made up of both your's and your employers contributions.

www.moneysavingexpert.com/savings/discount-pensions#howmuchshould

user187656748 Thu 11-Jan-18 07:44:32

3- 5 percent is fairly normal in the private sector.

Public sector is enormous in comparison. Doesn't work in quite the same way but the employer contribution can be the equivalent of 20% plus

pension is more difficult to negotiate than basic salary since the scheme administration can restrict things

SallyOMalley Thu 11-Jan-18 07:47:39

My employer contributes 16% into our company pension scheme (I'm in HE). Is yours a People's Pension Scheme? I think the figures you mention are more in line with that - my workplace pays between 1% and 3% into ours.

LemonSqueezy0 Thu 11-Jan-18 13:30:38

Mine is a public sector type role, so 20% on top of my contribution.
In regard to your situation , it's a great opportunity and of great benefit to you long term. Are they able to negotiate on paying directly into your pension pot, or is it a case of a salary increase that you intend to pay into your pension? It may be worth considering how this will impact on future roles and salary negotiations outside of the business

KanielOutis Thu 11-Jan-18 16:37:23

I have no idea the %, but I am public sector, pay in £100/month and get a career average pension. I'm on £22k a year.

ArbitraryName Thu 11-Jan-18 16:39:18

18%.

MissSueFlay Thu 11-Jan-18 16:43:24

Private sector here, previous employer matched contributions up to 7%, current employer matches up to 5%. If I choose to contribute only 2% then my employer will do the same so it makes sense to get the max. If I don't pay anything in, neither will they.

PinkBuffalo Thu 11-Jan-18 16:46:27

I'm public sector on 20k pa. I pay 6.5% of my monthly salary into LGPS which I believe is matched by my employer. I'm on carer average and have paid 6.5% since I started in my early 20s nearly 10 yrs ago.

Itscurtainsforyou Thu 11-Jan-18 16:47:42

Is there a rule of thumb that says you should look at the age you are when starting pension contributions, half it, then that's the percentage you should be paying in.
So in your case that's 32/2 =16%

WFPB Thu 11-Jan-18 18:01:41

16.48% (teaching) - I put in 7.4% (part-time - the percentage goes up as you earn more topping out at 11.7%).

DH works in the private sector and his employers match his contributions up to 8% (his previous employer matched up to 10% - not sure about before that but think it was pretty generous too).

TalkinPeace Thu 11-Jan-18 18:17:07

LGPS : Employer contribution is upwards of 20%

Teaching, NHS, MOD and Civil service are all "unfunded" schemes so it is a "deemed contribution rather than a real one
and averages 18%

Private sector : the legal minimum climbs in April to 2% but any employer paying less than 6% clearly does not value their staff

WeAllHaveWings Thu 11-Jan-18 18:47:42

I pay 6%, company tops up to 25%. It’s is a defined benefit pension though, not final salary.

TalkinPeace Thu 11-Jan-18 18:56:22

It’s is a defined benefit pension though, not final salary.
You mean defined contribution
DB is linked to salary
DC is fixed amounts

the latter is the mother of all mis selling scandals that will hit in a couple of years' time when people realise that they do not have enough to live on in old age

WeeBeasties Thu 11-Jan-18 18:58:24

I pay 6%, employer pays 12%.

10FingersOnTheFender Thu 11-Jan-18 19:05:27

Private sector, big employer.

Employer pays 10%. I don't have to pay anything to receive that 10%.

I would say this is pretty generous (relative to other private sector employers)

stoneagemum Thu 11-Jan-18 19:06:15

Private sector SME matches up to 6%

Star2015 Thu 11-Jan-18 21:15:31

I work for a small Parish Council and they have stopped enrolling employees into the LGPS... they have just one employee left in it and they contribute 22.2% into that pension pot.

I understood I wouldn’t receive a LGPS but hadn’t appreciated the % paid into the workplace pension until after I started.

So I’ve said I’m not happy with those and they have said they will increase them but won’t match the 22.2% so I’m looking at a figure to start negotiations.....

Seems like 16% seems to be reasonable?

Thanks everyone who has responded smile

TalkinPeace Thu 11-Jan-18 21:24:31

Star2015
I work for a small Parish Council and they have stopped enrolling employees into the LGPS... they have just one employee left in it and they contribute 22.2% into that pension pot.
Do warn the members of the size of the exit charge if ever the last employee leaves the LGPS ....

Its incredibly unlikely they will go anywhere near the LGPS percentage as for parishes its close to 30% - which all comes out of the precept.

10% would be excellent in the smaller body public sector
be willing to settle for 7%
and remind them of the exit charge wink

PissedOffNeighbour Fri 12-Jan-18 09:21:13

My mid sized private sector employer pays in 8% and I pay in 5%. I also have another private pension which I pay in a fixed amount equivalent to about another 14%. I’m 50.

OneMoreOne Fri 12-Jan-18 09:23:08

I do 6%, they double up what I do to 12% max. So at the moment 18%! Not sure I'll ever get that again if I move jobs...

OneMoreOne Fri 12-Jan-18 09:26:27

Thought I was on an exceptional one until I saw the other posts about public sector pensions!

*
Private sector : the legal minimum climbs in April to 2% but any employer paying less than 6% clearly does not value their staff*

DBs company only pay the minimum, but usually give pay rises of 15% a year. I'd rather have the pension as I guess compounding makes that a better bet. Could just put that payrise in as pension I guess.

TsunamiOfShit Fri 12-Jan-18 09:29:25

My employer pays in double what I choose to pay. I currently pay 3% so they pay 6%.

evilharpy Fri 12-Jan-18 09:31:00

I have a DC scheme. Employer pays 12.5%, I pay 6% which I keep meaning to increase.

10FingersOnTheFender Fri 12-Jan-18 09:43:47

@evilharpy That's pretty generous. is any of that 12.5% a matched contribution?

What sector are you in (if you don't mind my asking)?

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