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

[Star2015]

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!

financial institution in The City. Employer basic contribution is 9% then will match anything i contribute on top of that up to a further 5%. I pay 5% so total employer contribution is 14% and total contribution is 19%

I am 45.

NHS - I pay 9.3%

Oh and I think they contribute 14.3% or something

1%, and it's a rubbish scheme. Private company. Cost of living pay rise this year was 1.25%, and didn't come into effect until October.
I've previously worked in the third sector (employer paid in 5%, I could pay as much or as little as I wanted, scheme was not great but not as bad as my current one) and public sector (eligible for LGPS. being an utter tit I never joined as there always seemed to be better uses for the money).

Honestly, when I read stuff like employers having 22% pension contributions for some older employees whilst offering much less to newer starters, it disinclines me to want to bother paying in at all. I appreciate that in OPs case the two schemes are different so it won't be her paying for the 22% contributions, as it would be in some companies. But I bet whatever scheme you pay into OP is going to give you a great deal less than it gives people who enrolled a couple of decades before you. It's quite dispiriting. I am increasingly thinking just to pay in the minimum the employer will match and find other ways to invest.

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

Can you tell us more about this talkinpeace?

They pay 8%, I pay 15%

@IsaSchmisa

Honestly, when I read stuff like employers having 22% pension contributions for some older employees whilst offering much less to newer starters, it disinclines me to want to bother paying in at all. I appreciate that in OPs case the two schemes are different so it won't be her paying for the 22% contributions, as it would be in some companies. But I bet whatever scheme you pay into OP is going to give you a great deal less than it gives people who enrolled a couple of decades before you. It's quite dispiriting. I am increasingly thinking just to pay in the minimum the employer will match and find other ways to invest

I'm pulling out of my work's pension scheme this year for this exact reason. I refuse to pay for my senior colleagues' ridiculously high final salary pensions (which they're guaranteed after a much less stressful working life than me) when the scheme is changing such that my generation are not guaranteed a penny. Fuck that, I'll invest the money myself.

And it's just not sustainable. I appreciate that OP would be in a different pension scheme to the 22% person, but for those who are in the same schemes as people with very high promised pensions, the idea that there might be enough to pay us anything like what's promised, or even what we put in, just seems implausible. It does not seem like a sensible financial decision for me.

Also wondering if company pensions as hey are will work long term. Colleague of mine thinks best thing since sliced bread, an annuity pays you for the rest of your life, the tax advantages are amazing, the money is protected yada yada. He is on final salary.

I certainly am diversifying between pension, ISAs, probably get into some shares, but I don't feel like I know enough...

DH’ s employer matches up to 3% it seem like a good scheme making decent 13% annual returns

I was going to say I'm sure he does think that if he's final salary, but frankly I wouldn't be betting on them holding either. Maybe if he's retiring very soon but there are some people who aren't 50 yet who have them, I believe. Final salary pensions in 45 years time? Unlikely.

DB schemes stopped being affordable with a retirement age of 65 around 30 years ago - which is why companies dropped them and forced all except the directors across to DC schemes
funny that DB remained the right thing for senior staff.....

Governments have been kicking the can down the road for decades ( hence the UK's deficit ) so chickened out of dealing with DB final salary schemes.
In 2012 all public sector pensions moved to career average
But the utterly unaffordable liabilities from the 80's and 90's are still to be paid
by current staff who will never get pensions like that.

If you have access to a DB scheme .... Do Not Leave It. Under Any Circumstances just don't.

As for the OP in a Parish council, they need to take sector specific advice
Urgently

So when you say misselling, do you mean you think they won't be paid?

Isa
DC pensions will pay out.
But the amounts will be less than people paid in and far less than enough to live on.
UK pensions have the highest charges in the EU
So lowest returns

Gotcha. I think so too, since that money has already been spent.

Talk do you genuinely think that DC schemes will pay out less than has gone in? DH and are are both mid 40s and are both self employed. our priority was going to be to switch to putting money into the pensions but your comment has made me worried.

DH has about £250k in his and I have about £350k in mine. That currently gives us predicted incomes of circa £23k each including the state pension (whatever that might be in 20 years' time)

3%

user187
Look at what you have paid in, look at what you have compared with inflation.
The fees are far higher than most people realise.
If you have a lot in there you will probably be OK

but an auto enrolment pension taking 3% of a £15k salary a year will never provide security in retirement.

For my level my company match up to 5% . For people higher up its up to 7.5%.

Thanks for all your responses everyone... I’m ultimately going to aim to be at 15% but if they agree 7-10% for now in addition to the contributions I make I’ll be happy.

Thanks again.

star
Remember that under the Transparency code, whatever they agree for you will be published on the web .....

I'm in the private sector in an apparently booming industry but my employers contributions are a dismal 1% and not set to rise (it's only just gone up to this from, er....zero).
I'm just going to have to top myself at retiral, I think.

Pensions are a con. Ours are worth less and less each year, even though we've been paying in for 30 years.
Presumably we are are paying for those on final salary pensions. Who are originally expected to only live 5-10 years post retirement, but are now living 20-30 years?

Well their contributions are pretty unlikely to be covering it...

Can someone explain to me in simple language why everyone says "we're paying in but not going to get it back" regarding workplace pensions? Because it really bloody confuses me. What about the contracts we've signed? What about the Ts and Cs and the agreements? I've we've signed something to say that "every year of contribution is worth £400 p.a. pension upon retirement" (for example) then that is a legal document which must be followed and upheld! Please explain because I simply don't get it!