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OK - These have never been of any interest to me as I have been fortunate enough to have a defined benefits scheme with my current employer.
However, should I consider a move, or be pushed, then it is probably 99% certain that I will be working for an employer who has a money purchase scheme.
What are the benchmarks for employee and employer contributions with such schemes?
I was recently talking to someone about an opportunity where the rates were 3% employee and 10% employer, which was being positioned as a very good one, but I have no idea
Any numbers floating out there?
Big FTSE100 here and those figures look pretty good. I think ours is 4% and 8%, although I narrowly made it into the defined benefits scheme. It's really a golden handcuff now though. A recent pension forecast showed that if I work for another 21 years, the 5% AVC I contribute won't match the 11 years defined benefit I've already accrued 😯
Our is: Employee 3%,4%,5% Employer 5%,6%,8% max.
about 8 years back was tuped from a company with final salary to company with defined contribution- as part of the transfer an age linked percentage was negotiated in an attempt to match the benefits- at 41 I was getting 15% of my salary banked to the new scheme. I think at 45 it would have moved to 18%, then 21% at 50.
Keeping a vague eye on the performance, it looks like 15% won't be high enough to match the final salary scheme.
3%/10% would be v. good.
Mine currently is 5%/10%
Previously it was 5%/5%
You can put more in but the company won't match it. If you put int less then the company puts in proportionally less.
Just had my statement though, fund is £26K down on this time last year, despite all the contributions made.
Lovely.
So what happens if the pension provider fails, as do the banks, and the governmnet has no spare cash to prop them up.
Ever remember what Maxwell did with his pension scheme for the workers or tthe workers of the steelworks in Ellesmere Port.
OK thanks - based on this highly statistically significant sample it looks like a good employer should be coughing up about 8% provided the employee is prepared to match it.
3%/10% looks very good - best of breed. 4%/8% or 5%/10% may be more typical - ie, employer paying up to twice the employee contribution. Was led to believe that it may be 1 to 1 by one recruitment consultant
I think I am currently paying over 8% but that is to keep my retirement age down.
we get 3% - 5.5% depending upon seniority with the firm matching whatever you put in. Some people are too hard up to pay anything so miss out of the 'free' contribution that always seems hard.
My scheme is 6% employee, 12% employer.
You can put in whatever you want up to the 6%, and the employer will double it. It's all pre-tax, so a bigger percent means less tax paid.
So what happens if the pension provider fails, as do the banks, and the governmnet has no spare cash to prop them up.
There is a insurance scheme that steps in if an insurance company fails I believe.