What percentage of your salary are you paying to your pension

[Kerry987]

I am getting a bit concerned that DH and I don’t have much pensions contributions and want to increase it so would like to have an idea of what percentage people contribute. I know it will vary depending of people’s circumstances but want to have a rough idea.

Thank you

@Kerry987

I think we will be working until our 60s nearly 70. Should have started planning earlier. I am 45 but my pension pot is a bit depressing.

I don’t think it’s that bad. As a couple, your combined state pension will be over £1500 per month (tax free). With no mortgage to pay, no children to fund etc it probably results in quite a lot of disposable income after you’ve paid your bills and groceries. If both of you keep on putting money into your pensions for the next 20 years, you should be quite comfortable when you retire.

I am surprised by how many people have been working for Companies that offer pension contributions before they became compulsory in the UK. I imagine they are big companies which offer additional benefits; apart from civil cervices which I understand offer very good pensions.

I have worked part time for small Companies since having children so not additional benefits. I don’t regret it as I enjoy seeing the kids grow, creating memories, having holidays together; but wished we would have started planning a bit earlier.

5% plus 15% from employer.

Some people have mentioned their contributions into teacher pensions, but not that their employer pays in over 20% of salary too.

One of the things that makes the defined benefits pensions of the public sector such as teacher, civil service etc so good is that much if the contribution is from the employer (state in most cases).

6% max at my company is 7% and I'm 25 with 12% on student loans 🙄. Slow and steady.

@JamSarnie isn't everyone's defined contributions now?

[quote CorianderLord]@JamSarnie isn't everyone's defined contributions now?[/quote]
Think NHS is now defined benefit but salary average rather than final salary. Still bloody brilliant compared with defined contributions.

I have a small final salary but I am a not an active member as I left many years ago. So the majority of mine are made up of DC which I still contribute too.

Hopefully the state pension will still exist when we retire

@Kerry987 if the pension age stays the same then I am meant to retire in 2063. Somehow I doubt they will be giving me a state pension in 2063.

About 20%. I have a defined benefit pension and pay extra into it at the moment so I can retire early.

You accrue state pension rights when you pay National Insurance so I can’t see how that could be suddenly pulled out. The government could lower NI and say that the contributions won’t count towards state pension but what’s been paid, has been paid. The U.K. is quite a welfare state too so I can’t see that it would withdraw state pension but it is increasing retirement age not to pay out for too long.

I don't actually know! Is the LGPS and is defined benefit.

@Themostwonderfultimeoftheyear

I don't actually know! Is the LGPS and is defined benefit.

Thank you. That is reassuring

For people who aren't final salary how much are you aiming to have in your pot when you retire?

This is the bit I'm struggling with to ensure I'm paying enough in now - still have 20 years to go and have about 200k in mine and husband has military pension and likely another one from a second career but just have no idea if my estimations are correct

I pay 9.3% and my employer contributes 20.6%, I also have just over 25% share of my ex's pension.

No idea. I pay full whack into LGPS. They have a 50/50 option but I didn't take them up on it.

@Kate6000

For people who aren't final salary how much are you aiming to have in your pot when you retire?

This is the bit I'm struggling with to ensure I'm paying enough in now - still have 20 years to go and have about 200k in mine and husband has military pension and likely another one from a second career but just have no idea if my estimations are correct

I have an IFA who draws nice charts of how much my money is expected to last if I save x for y years and spend x over a further y years.

What I did was totally up all my bills that I expect to have in retirement. Added an amount for house maintenance, unexpected bills and an amount for holidays. I then said I wanted the equivalent of this amount per year (they worked out inflation for me).

With the expected amounts I plan to save and my target retirement age they worked out a predicted drawdown plan to show how that might look if I lived well into my 90s.

To be honest with drawdown etc I found it quite complicated to work out how much I needed to save and how likely that was to last my lifetime that paying for an IFA was worth it. As it happened we had quite a shortfall to be able to retire early hence throwing in as much money as we can into pensions and other savings to make that happen.

5% + 3% from my employer. I will at some point inherit around £700k - £1m so I'm not too bothered.

@JamSarnie that is really helpful thanks

I knew I'd need an IFA but been putting it off as I don't know anyone who has used one in the area and have been putting off as would prefer to go on recommendation

DH started a new job last year and that’s defined benefits - we were surprised.

They aren’t a U.K. based company though and operate in a highly unionised environment, so he’s boosted his pension as much as he can

I'm civil service, so I pay 5.4% and my employer 27.1%. I realise how lucky I am and I'll be staying here until retirement with those numbers! Equates to about 1100ish a month.

Self employed - I pay in around 15% of my annual profit (including the tax relief the government adds) to a stakeholder pension.

I'm 52 and don't have a massive pot (around £150K in total) so need to increase contributions when I can afford to. My house is paid off now though so won't have housing costs in the future.

I also have a small amount invested in a S&S ISA that I'm hoping will give me a little more to play with for extras in retirement, or cover a year or two of shortfall of state pension if I retire prior to age 67 - currently aspiring to retiring at 65 but not sure if that is achievable.

Have a DP but we keep our finances entirely separate so need to accrue enough for me to be able to live off comfortably.

Like PPs - currently just happy I am still able to make a living and will at least have a little more than just a state pension even if I won't be rich!

20% - half me and half employer. I like to pay it pjt automatically and not think about it, adds up quickly and I'd like to retire early

I pay 8% as this is highest my company will match (so equivalent of 16% going in pension)

12.5% and employer contributions are 14% I think. I'm NHS.