Please help me with this pension question… no idea what I’m doing

[pforpension]

I have been offered a new job. It’s a step down from my last one in terms of benefits and so whilst my old company matched my pension contributions, this company will not.

I am a bit embarrassed to say I don’t really understand pensions. Will the new company take money out of my pay for my contribution to my pension? Or will that not happen automatically? Will I have to set up my own pension somewhere and then just literally pay in from my pay? I’m out of my depth! For context I will be paid 72k so I’m not sure what would be a reasonable amount to pay in?

There will be a pension that they contribute to, they have to by law. You’ll get the info when you start but they have to automatically enrol you. If they provide the minimum require by law, you’ll contribute 5% of your salary, and they’ll add in 3%. You can almost certainly increase your contributions, but it sounds like theirs might be capped at 3% (or maybe it goes up a bit but doesn’t match yours).

ETA - how old are you and what’s your current pension pot? That will help people give a guide on what they’d suggest you contribute. But obviously it also depends on other financial factors like your outgoings

What % will they be contributing? Usually if your enrolled into the pension scheme you will be able to set your contribution unions, but there is a minimum for both you and your employer (assuming you’re in the UK?). The % you should pay really depends on Your age and when you want to retire, and what you already have in pension pots.