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Discussion Starter · #1 ·
Out of curiosity, what percentage of your salary do you put into your pension?

I'm just looking through my pension just now and doing the maths. Our company has conducted a consultation period and we need to change or pension options.

The company will put double what I put in, but only up to 8% and they will put in 16%.

I'm thinking that would be a wise amount and paying more voluntary contributions myself are a little wasteful. It also seems a bit wrong to sit back on maybe 5% given the potential gains.

Thoughts?
 

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I think the maximum you can pay in is 15%. I'm paying about 12% but will have to be paying more in soon. Work longer, pay more in and get less back.

Kerr, start paying in as much as you can possibly afford, as soon as you can. Take maximum advantage of your employers increased contributions.
 

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If you can put the full 8% just to get the companys extra too. As you get older start increasing the amount you put in... my Father finished putting over 40% near the end of his working life which of course had tax benefits too.
 

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I put in 6% and the firm adds 8%. I also get 6x salary as a death policy. Not good for me but my fsmily are covered. I will starting increading my contribution when I hit 50 but cant afford it at the moment.
 

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It sudenly dawned on me i have no record of my companys contributions on pay slips or P60... Had a quick word and its only shown on my End of year pension statement...

What i didnt know was im only paying 3% and my company 4% im going to slowly increase it to the max of 7% and company contribution of 8%... Im currently losing 4% per year of free money!!!!
 

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15k here and I ain?t even got a lollipop
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Kerr think of it this way if you only put in 5% you are losing 3% so in theory you are getting 100% extra for your extra 3% plus likely basic rate tax relief at source 20% and then if Higher Rate Tax payer a furthe 20% rebate on contrutions depending on your earnings level, money tied up but it has to be a fantastic option to take, as for contributions the levels you can pay in are usually far higher than you will want to pay in , but also make sure you have been getting any HRT relief you maybe due as many are not claiming it with ajusted tax codes
 

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The common advice is 'half your age' and that is the minimum percentage that should be going into your pension (including any employer contribution), e.g. if you are 40, then you should have 20% minimum going into the pot!
 

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And then find out you've been screwed over when your reach the age.

Channel 4 investigation

Michael Buerk investigates the pensions crises facing us all. As the cost of living rises faster than many pay packets and life expectancy increases, he asks what your pension is really worth.

He examines how prepared we all are for retirement and hears from industry insiders who say, when it comes to cashing in pensions, some companies are offering their customers poor value for money. Exclusive data passed on to Dispatches suggests this can leave many of us thousands of pounds worse off during our golden years.

Even before you retire there may be others eager to get their hands on your pension. Using secret filming, the programme investigates: how some companies try to 'liberate' your pension early; the standard of their investment advice; and whether they are open about often-crippling tax bills that could seriously damage your nest egg.

With all the pension pitfalls, Buerk looks at the alternatives. Hype around rising house prices means many are looking at property as the savings saviour. Dispatches puts pensions and property head-to-head. Will buy to let and downsizing offer a silver bullet?
 

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Discussion Starter · #13 ·
House prices have to fall as they are way too high.

I haven't had the chance to see Panorama from the other night yet, but they covered the subject.

Not from a pension view, but the fact too many people were living beyond their means to oay a mortgage or rent. The economy will be far better once they do have free money.
 

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In exactly the same position as IPlod999 who posted earlier in the thread (same job allbeit in N Ireland)....a complete joke, increased payments and extra time to do to receive a smaller pension / lump sum......

Fairly sickening, as the "new" contracts were not what my colleagues nor I agreed to many years ago.....:(
 

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I am currently paying 8% with the company paying 7%, 15% in total, this is into a new scheme after our old final salary job was stopped, but I do have 30 years into that old one frozen. Cant see much point paying any more in as it has to be used to buy an annuity anyhow :confused:
 
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