now I’d normally go and see someone and get advice , but I didn’t see this until I got back Friday , I’m obviously away all next week and there saying if you don’t get a form off payroll / return it by the 31/5/18 you will be automatically be enrolled in this scheme , I pay £100 a month into there scheme , so is this of benefit to me or not ?
nb I also have company pensions from previous employments / private pensions / isas if that would make any difference , ta
They’re changing when they deduct your pension payments from your salary. Currently the way its deducted you save on income tax but not NI. By abusing salary sacrifice you won’t pay NI on the £100 a month you contribute. No doubt they’ll sell this as a wage rise because you take more home.
Its nice to see someone taking their pension seriously. £100 a month is a reasonable amount to be putting away if you’ve been paying into pensions for quite a while throughout your life as you have. Looks like you will be one of the few who won’t be retiring skint.
So it’s ok Connor 
, it just there apparently automatically enrolling you into it unless you get a form and say no , but you’ve got to have form in by 31/5/18 and after only seeing it Friday and being away all week it isn’t leaving any time to get much advice . Ta
If its an additional pension, with net contributions i would go for it, you can always opt out later i presume.
dozy:
So it’s ok Connor
Yes perfectly fine. Basically there are three ways of contributing to a pension:
-
Net pay - employee contribution is deducted before income tax is calculated but after employee’s NI. The NI is irrecoverable. This is the one you have been on.
-
Salary sacrifice - technically there is no employee contribution, the employee takes a reduced salary in exchange for a higher employer’s pension contribution. This means all payments are made before any tax or NI is deducted. This is the one they’re moving you to.
-
Net pay - employee contribution is deducted before income tax is calculated but after employee’s NI. The NI is irrecoverable.
relief at source - employee contributions are deducted after tax and NI. The pension scheme reclaims basic rate tax automatically. Higher rate taxpayers can reclaim the difference from HMRC. This typically applies when you use your own provider and not an employers scheme.
Conor:
dozy:
So it’s ok ConnorYes perfectly fine. Basically there are three ways of contributing to a pension:
Net pay - employee contribution is deducted before income tax is calculated but after employee’s NI. The NI is irrecoverable. This is the one you have been on.
Salary sacrifice - technically there is no employee contribution, the employee takes a reduced salary in exchange for a higher employer’s pension contribution. This means all payments are made before any tax or NI is deducted. This is the one they’re moving you to.
Net pay - employee contribution is deducted before income tax is calculated but after employee’s NI. The NI is irrecoverable.
relief at source - employee contributions are deducted after tax and NI. The pension scheme reclaims basic rate tax automatically. Higher rate taxpayers can reclaim the difference from HMRC. This typically applies when you use your own provider and not an employers scheme.
Ok, ta
Don’t turn down these offers, I did in past employment but my present company automatically enrolled me into the company scheme, it’s the best financial thing that ever happened to me, it has given me thousands in extra funding over the 11 years of being in it and still there is a lump sum to claim on retirement.
Conor:
Its nice to see someone taking their pension seriously. £100 a month is a reasonable amount to be putting away if you’ve been paying into pensions for quite a while throughout your life as you have. Looks like you will be one of the few who won’t be retiring skint.
Contributing £100 a month isn’t really “taking it seriously” (unless you are a 20 year old on £10k a year). If you’ve been making contributions at that level for 40 years, it’ll maybe get you a few hundred pounds a month. Better than a poke in the eye with a sharp stick but hardly enough to maintain a standard of living (with lots of leisure time) when added to the £700 or so a month State pension.
Roymondo:
Conor:
Its nice to see someone taking their pension seriously. £100 a month is a reasonable amount to be putting away if you’ve been paying into pensions for quite a while throughout your life as you have. Looks like you will be one of the few who won’t be retiring skint.Contributing £100 a month isn’t really “taking it seriously” (unless you are a 20 year old on £10k a year). If you’ve been making contributions at that level for 40 years, it’ll maybe get you a few hundred pounds a month. Better than a poke in the eye with a sharp stick but hardly enough to maintain a standard of living (with lots of leisure time) when added to the £700 or so a month State pension.
Read above , I have pensions from previous employment , private pension , isas etc , Mrs the same , I took this out years ago and just leave it at the £100 pm as you just don’t miss it .This is just something I’d not seen before , why I asked the question .
Anyway Connor gave me the answer so I’ll take his advice , just let it carry on
Roymondo:
Conor:
Its nice to see someone taking their pension seriously. £100 a month is a reasonable amount to be putting away if you’ve been paying into pensions for quite a while throughout your life as you have. Looks like you will be one of the few who won’t be retiring skint.Contributing £100 a month isn’t really “taking it seriously” (unless you are a 20 year old on £10k a year). If you’ve been making contributions at that level for 40 years, it’ll maybe get you a few hundred pounds a month. Better than a poke in the eye with a sharp stick but hardly enough to maintain a standard of living (with lots of leisure time) when added to the £700 or so a month State pension.
Roymondo has it here. Having said that, any top up to the £700 pm if thats what it is in the UK now has got to be worth having. That figure is a joke, thats got to equal poverty living…
I’m pretty ■■■■■■ pensions wise, never earnt enough until recently to be able to set any thing.
At least my wife will get a good pension.
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Roymondo:
Contributing £100 a month isn’t really “taking it seriously” (unless you are a 20 year old on £10k a year). If you’ve been making contributions at that level for 40 years, it’ll maybe get you a few hundred pounds a month.
No idea what calculators you use but you may want to consider using a different one as yours is quite broken. £100 a month equivalent assuming annual 2.5% inflation and a return of 5% gives a retirement pot of £220k. You could draw down £8,800 a year minimum as a safe withdrawal rate and never touch that £220k principle sum. You could draw down £15k a year and it would most likely see you out.
Conor:
Roymondo:
Contributing £100 a month isn’t really “taking it seriously” (unless you are a 20 year old on £10k a year). If you’ve been making contributions at that level for 40 years, it’ll maybe get you a few hundred pounds a month.No idea what calculators you use but you may want to consider using a different one as yours is quite broken. £100 a month equivalent assuming annual 2.5% inflation and a return of 5% gives a retirement pot of £220k. You could draw down £8,800 a year minimum as a safe withdrawal rate and never touch that £220k principle sum. You could draw down £15k a year and it would most likely see you out.
Yes, as I said “a few hundred pounds a month”.
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