Good Morning All,
So it appears to be the norm for new drivers to expect to do some agency work to start with, unless you get lucky with an employer.
I was just wondering how pensions come into the equation, is it simple to manage your pension, do you add your own contributions (optional)?
Because i’ve read that agencys want you to work 3 months before they allow you a pension, not sure if they are all the same though.
any comments guys/gals 
cheers
I’m by no means an expert, although I was offered a place as a trustee in my previous employment so know a bit about where I worked before, but that was for a final salary in house scheme. As far as I am aware you can choose how much you will contribute, and then your employer and the government will match that amount at 3:1 ratio. What I don’t know is whether there is a limit that you can put in, but I will look into that and get back. As it stands I dont think the legislation comes into force for a company that employs less than X (sorry not sure of the number) until October, although many have already opted in.
Most employers will try to auto enroll you at the minimum contribution level because the less you pay in the less they pay in, so you’ve gotta be prepared to say you’d like to pay in more. Whether they will take the hump if you try to pay in more is open for debate so maybe wait until the trial period (usually 3 months) is over before saying you’d like to increase your contributions as you’ll want to keep your nose clean until you’ve proved yourself. Realistically unless you’re paying in a minimum of £30/week you aren’t going to be getting anything to shout home about when you retire. Personally I’m going to be looking at paying in between £40-50/week. If you are young then £30/week would be a good starting point and don’t put it off, the younger you start the better!
Hi Tris,
Well i’m 28 this year and going to start training for C, C+E, in the next month or two. I appreciate your comments btw. Also with regards to agency’s, worst case scenario, if you have to work for a couple of them just to scrape together a weeks work, does it get more complex trying to manage a pension, 2 agency’s - 2 contributors? etc.
cheers.
Dan Bear 87:
Hi Tris,Well i’m 28 this year and going to start training for C, C+E, in the next month or two. I appreciate your comments btw. Also with regards to agency’s, worst case scenario, if you have to work for a couple of them just to scrape together a weeks work, does it get more complex trying to manage a pension, 2 agency’s - 2 contributors? etc.
cheers.
I’m unsure as I have an inherent dislike of agencies.
Personally speaking I think you’re wrong to assume you will have to work for an agency to start off with. Once you’ve passed it’d be better for you to go round your local hauliers and sell yourself. For a start you’ve made a massive effort at a great expense to have got qualified - they will appreciate that. Also they are crying out for drivers and many would rather have you on their books than be forced to pay a middle man for you to work for them. I only passed in December and went job hunting the old fashioned way and I had half a dozen options within reasonable commuting distance. And if you get with a decent firm they will put someone with you for a week or so and train you up. I’m not sure but would you get this with an agency?
Most agencies will try to get you to go self employed that way you pay for your own pension, same with holiday pay. It makes the £1 per hour extra most agencies pay not look so good
Some agencies pay you directly as an employee, some pass your wages through an umbrella company which is effectively your employer, and no doubt others have different arrangements.
The Government’s new auto-enrolment rules mean that if you are an eligible employee and your wages are above a certain threshhold then your employer will have to automatically put you into a workplace pension where both they, and you, contribute. Bigger employers are already having to do this, smaller employers are starting to now, and everyone is expected to be doing it by 2018. You can opt out, but then you lose the company’s contributions. You will probably be expected to pay contributions in alongside your employer, but probably not too much - and since you’re asking about pensions I assume it is of concern to you so presumably you will be okay putting a little away for your future. You will get tax relief on your pension contributions.
Alongside auto-enrolment the Government is developing another concept called ‘pot follows member’. If this takes off then the idea is that your pots of pension contributions with different companies follow you around so you don’t lose track of them.
Another big change coming is that, from April 2015, from age 55 you can take as much of your pension pot as you like in cash - you don’t have to buy a pension. The first 25% cash is tax-free, but you pay income tax on the rest just as if it were a pay cheque. Remember, if you take a big lump of cash that’s like getting paid a massive bonus and you could easily push yourself into the higher tax brackets. Oh, and you’ll have much less left for the rest of your retirement…
If you want to go it alone then you can set up your own personal pension and pay into that wherever you work. You won’t get employers to contribute, but at least it is all in the one place. You may still be forcibly auto-enrolled into workplace pension schemes but you can always opt out (and repeat this process every couple of years). Is the loss of employer contributions worth the convenience, though? Maybe just good record keeping is what you need, and a bit of work to transfer your pot when you change jobs.