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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To ask about your work place pension?

120 replies

Mmmmarmalade · 26/04/2024 14:34

How much you contribute as a % of your salary and how much your employer does?

The minimum an employer has to is 3% which feels awfully low.

my old old employer had a very good scheme, performed v well to, they paid 10% and then a further match up to 6%.
current is ok competitively but not as good, 8+5%

what’s yours like? Wish I still had my old pension plan, can’t lie

OP posts:
TerroristToddler · 26/04/2024 16:57

My employer matches up to 7%, plus some extra to cover the NI saving amount. I put in 15% by salary sacrifice. Employees have to put in I think 3% as a minimum but I increased it along the way each time I've had a payrise.

Redlettuce · 26/04/2024 17:02

I think you'll mainly get replies here from people with higher pension contributions. Many people don't know much about their pensions and are probably getting the minimum.

I work in this area and around half employers in the private sector pay just 3%, which is the minimum amount.

countdowntomexico · 26/04/2024 17:03

Law firm. They pay 5%. I currently pay 30% but I've just had a significant pay rise so I'm currently deciding how much extra to put in my pension and how much extra to give myself as a pay rise.

Janome9300 · 26/04/2024 17:09

countdowntomexico · 26/04/2024 17:03

Law firm. They pay 5%. I currently pay 30% but I've just had a significant pay rise so I'm currently deciding how much extra to put in my pension and how much extra to give myself as a pay rise.

Are you not in danger of hitting the annual limit at 35% on law firm money after a significant pay rise?

Redlettuce · 26/04/2024 17:13

Lawyers are on around £50k - £60k round here so nowhere near the limit.

Redlettuce · 26/04/2024 17:13

The limit is £60k per year now!

Janome9300 · 26/04/2024 17:14

Redlettuce · 26/04/2024 17:13

Lawyers are on around £50k - £60k round here so nowhere near the limit.

Sorry was picturing you at Slaughters or something! Take it as a compliment 😁

soundsys · 26/04/2024 17:16

Employer 3%, me 5% which is pretty much the minimum I think. But it's a small social enterprise. Previous employer: I put in 6% and they put in 22% (university!).

AgnesX · 26/04/2024 17:23

Matches up to 7%, you can put as much as you can afford I think. DC since it's the private sector.

DarkDarkNight · 26/04/2024 17:23

Direct Contribution pension. Employer puts in 0.5% more up to 8.5%. I contribute 8% to get the maximum. I’m moving jobs soon and that will be DC where I will get 13% for a 7% contribution.

I used to be NHS but won’t get a lot from that pension as I was part time and a band 2 while there. I’m pretty scared about my pension, I only have £17,000 in my current workplace pension and am aware I should have much more at my age (40). I wish there was more education about it in schools and early career how important it is to start early and how those early contributions will mount up.

countdowntomexico · 26/04/2024 17:26

@Janome9300 I wish Grin

Youcannotbeseriousreally · 26/04/2024 17:30

I pay 8.5% they pay about 19% I think:

lechatnoir · 26/04/2024 17:32

I work for a charity so have both crap pay and crap pension! Salary sacrifice 3% from both and they will match up to 6%. I've just had a (minuscule) pay rise which won't even cover the recent increase on our mortgage payments otherwise which is a shame as I had hoped to increase my contribution a bit.

Honestly, if this wasn't the most flexible job ever with wonderful colleagues I'd have left long ago!

Banana34 · 26/04/2024 17:36

I pay 9.8%, employer pays just over 23%.

Spendonsend · 26/04/2024 17:38

I pay 6%, my employer 3% in my main job.

Jobs 2, 3 and 4 are LGPS where i pay 5.5% and they pay loads. Like 13% or something. Its defined benefit.

Zanatdy · 26/04/2024 17:39

No idea but I’ve got a civil service pension and I know it’s a good deal. I pay nearly £400 a month

NoisySnail · 26/04/2024 17:43

Employer puts in 3%, I put in statutory minimum.

Mmmmarmalade · 26/04/2024 17:49

So in muppet terms how does the nhs pension work?

OP posts:
Skykidsspy · 26/04/2024 17:52

Mine goes with service. 5% initially, 6.5% after 5 years, 7.5% after 10, 10% from 15 years and 12.5% from 20 years. Non contributory, although I also put in.

Gottoloveatakeaway · 26/04/2024 17:54

cadburyegg · 26/04/2024 14:59

Snap

Me too
But I add a voluntary 10% as I'm panicking a bit now about getting old

OneMoreTime23 · 26/04/2024 17:55

Mmmmarmalade · 26/04/2024 17:49

So in muppet terms how does the nhs pension work?

Contributions are determined by your salary band. You then accrue 1/54th of that year’s salary which gets uplifted for inflation etc and paid when you retire.

so if you earn £35k in year 1 you earn £648 of pension.
year 2 £36k £667 pension
year 3 £37k £685 pension and so on.

when you retire you get all of those amounts added together as your annual pension. So something like £14k a year if you do 20 years in that payband (plus cumulative inflation so probably more like £16k).

DeedlessIndeed · 26/04/2024 17:55

Private.
6% employer, 8% personal.

Dibblydoodahdah · 26/04/2024 17:57

Nw22 · 26/04/2024 15:43

@DappledOliveGroves I’m sure public sector employees can only dream of your salary though

You don’t know what the poster’s salary is. At the last law firm I worked for I earned a very similar salary to my teacher brother.

Flopsy145 · 26/04/2024 17:58

Public sector, I contribute around 5%, employer 27%

MoodyMardyMargaret · 26/04/2024 17:59

In large schemes the employer % reflects the amount needed to cover scheme liabilities as well as current employee contributions, they’re no longer the gold plated pension schemes of 20 years ago.

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