Increase in salary or increase in pension contributions (same percentage) which would you choose?

[Star2015]

Just that really?

Either a 3% increase on my salary or 3% increase in my employers pension contributions (taking their contribution to 5% for this coming financial year).

There was a hint of a further pay rise once I’ve been in post 12 months (September) so I’m thinking I should take the 3% on my pension.

Any thoughts?

How old are you, how good is your pension already and what's your tax bracket? Is it a defined contribution scheme? I think I'd lean towards increased pension contributions. However, you just take a salary increase - you'll be able to put the money into a private pension anyway but at least your salary on paper will be greater which might be relevant to things like mortgage applications.

If you can cope without the payrise I would go for pension. You wont miss it as you haven't had it if that makes sense.

Thanks both, I think pension too especially as there’s a hint of a pay rise later in the year.

I’m early 30’s.. I have one pension from another job but it’s not much. DH has a LGPS which he’s been in a good few years but I also want to build up my pot say over the next 25 years so that I have a decent pension of my own.

You will save a bit of national insurance but other than that, it doesn't make a lot of difference. You can always up your pension contributions yourself.

Salary, as I think it's best to have my money where I can control it. I'm always slightly apprehensive about pension schemes changing in the future.

Pension. If you don't need the money now.