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Pension help with new employer due to merger

2 replies

Atlasstars1 · 08/02/2024 11:54

My small business is merging with another larger business and we are losing quite a lot of our (small) benefits, but, it is what it is.
I’m quite naive about pensions- I currently pay in £81 per month and my employer contributes £75.
My new employer is offering to pay £253 per month as a contribution if I increase my contribution to £150 per month.
Is this a wise move? Short term my cash flow isn’t Great (£30k salary) and on my own with kids with additional needs and costs, so I wouldn’t normally choose to increase my contribution by £70 per month but is it worth it given the increase my new employer is offering?

(if I don’t agree to increase my payment their contribution will stay the same as my current employer contributes)

I know pensions are a Rocky area so I’m not sure what’s best to do. Thank you.

OP posts:
SnowsFalling · 08/02/2024 12:18

If you possibly can, increase your contributions. Your future self will thank you.
£70 extra contribution won't decrease your salary by quite that much, because of the tax. So maybe £55 drop in salary.

TheOneWithUnagi · 08/02/2024 12:29

Sounds like a good deal. You will have an extra £247 going in per month which will cost you the net of £70 = £56 (or less if doing it as salary sacrifice)

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