Employer pension contributions

[Adultdcs]

Hi all,

This is a bit of a random/personal question. I would like to gain others opinions please.

Regarding the pension, I am full time employed & been with the same company for almost 10yrs.

Due to life changes/seperation etc, I have not felt in a position to personally contribute to my pension for quite a long period of time, including previous employment,

i have approx 15+ years till I reach retirement but due to the fact I I can’t afford the deduction it’s also cheaper for my employer…….

So, question is because I can’t afford the pension deduction, am I being unreasonable that the company should still pay their share given it is personal circumstances?

You are being unreasonable, why should they pay when you don't?

Don't be daft.

Is there any way you can afford it? You're basically throwing away free money.

Well it's variable across different schemes and employers. My employer makes a 10% contribution whether i pay in or not. So if that's the kind of pension you would like, you could find a different employer. Alternatively, you could campaign for different conditions in your own workplace.

Because surely it would be an expected expense upon recruitment. Given that the contributions are 8%split. Obviously I’m only talking the same share as were I to opt in tomorrow

If it's auto enrollment then it's very unlikely an employer would pay the full 8%.

Some employers do pay even if you don't but this is increasingly rare. The idea is to support people to save for their retirement, not take it entirely out of their hands.

Also, everyone has different views on "afford". I could "afford" a brand new Tesla, but I won't buy one, I prefer to use my money in other ways. So, maybe some people can't "afford" their pension, but they still go on holiday, or buy expensive clothes or whatever.

If it's auto enrollment, they can't legally do that. You have to have 8%, employer min 3%, though they can pay more, the whole 8% if they want. But what they can't do is pay their share where their scheme splits it, and you not pay.

Have you actually done the maths? It's probably less net loss than you think.

Same here

I ( begrudgingly). I pay in 12.5%.
my employer (NHS) pays in a pretty good amount too ) I’m an 8c)

I completely understand however I don’t have such luxuries.

The reason for my post was because I have 1 child. No family. I have cut back on everything following an abusuvie relationship & having lost my home. I am concerned when I’m gone my child will have no-one.

Having been in a situation where I left home at 16, I am trying to do my best by my child. I would like to better their circumstances.

Just for the record I do not receive any benefits and support my child (currently in uni).

So feel a bit hard done by when, if I could afford it would be an option .

to get back to the point, I don’t really understand why I should not be considered for ER’s.

please note that by explaining does not mean I am asking for anything other than the original topic x

Because I can’t afford to

im not asking for anything different than were I to opt in tomorrow…..just beat me down cuz I can’t afford the deduction

Bae cause you signed a contract where, presumably they were were clear as to the terms and conditions of your employment, including under what circumstances they would pay varying % into your pension

when they budget they likely assume a mix of take up

YABU. The scheme has set terms and you either follow those or you don't. There's no part way option.

I would really look again at whether you can afford the contributions. It's usually taken pre tax so you won't lose as much as you think.

i signed a contract but obviously they should be amended in accordance to legislation.

I really don’t understand this……
So, employers should most definitely take on an employee personal circumstances when recruiting cuz it’s quite a good saving (obvs they won’t have to pay)…….
I’m actually now agreeing with what the point in working actually is…..

Nope, I’m guessing you’re referring to salary sacrifice. You may want to check the budget.

Why shouldn’t everyone be treated equal?

Your pension contribution comes off before tax regardless of salary sacrifice. Salary sacrifice is where your salary on paper is lessen with the balance going into your pension, the budget changes will have no impact on pension contributions unless you’re in a salary sacrifice scheme.

Everyone is treated equal though, everyone in a pension scheme pays some of their own money and employers also contribute a percentage. What you’re asking for is unequal treatment where your company pays a contribution but you don’t.

I’d really look again at your numbers and see what the actual difference in take home would be if you made the minimum contribution.

I think personally that it is unequal.

Given that I do not contribute & is my choice it should not be inflicted on me due to affordability.

if it were a flat rate it would make more sense, regardless of whether an employee contributes or not.

equal treatment would be if an employer paid a set percentage regardless of circumstances.

In your shoes, I would just wait for state pension and pension credit.

Unless you’re in a pubic sector job with a generous pension scheme.

Anyone who says they can’t afford pension contributions but still has expensive holidays is foolhardy.

I wasn't aware that pension provision within the sex industry was that good 😁

Jings op you are totally deaf or just arrogant ..the government made all employers paye a percentage for employees who also contributed. Why should I tighten my belt to pay for my old age and get a better pension .when you get a private pension yes smaller than mine .for nothing and because it's smaller you will likely get other benefits. So you don't put in at working age and can take more out probably at end .how is that fair ?

Lol, have I missed an update?