Chit Chat
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10 Feb 12
09:19
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Date Joined:
14 Jun 03
Have just signed up with our company pension scheme. I'm paid each month on the 27th, but my pension contribution is not paid into my fund until the middle of next month. There is a govt rule that says a pension contribution has to be paid within 19 days from the month in which it was deducted.
Question - those of you who have a pension scheme through your employer - how long do deductions take from your pay to get into your pension fund?
I think this would have a very visible impact over 25/30 years of contributions, losing 3/4 weeks of interest for every single payment.
Question - those of you who have a pension scheme through your employer - how long do deductions take from your pay to get into your pension fund?
I think this would have a very visible impact over 25/30 years of contributions, losing 3/4 weeks of interest for every single payment.
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Replies: 31
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Doesn't that work out at about 19 days?
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yes but my point is, why does it take so long? In this day and age, surely the money could be paid from my salary direct to the pension fund. I don't get why it needs to sit in another bank account for 3 weeks before its paid into my pension. I am losing that interest and someone else is benefitting from it.
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"yes but my point is, why does it take so long?
.... I am losing that interest and someone else is benefitting from it." "Someone else" has to eat, don't they? |
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All of the financial services industry, all their employees and financial advisers, all their glossy brochures and advertisements, all their immaculate buildings are all paid for out of the charges and fiddles they extract from the investor.
We pay for the lot, and all they do is shuffle our money around. They’re just a pack of overcharging thieves. |
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have you addressed the situation with your lazy rsed wages dept ?
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Go knock yourself out- its well worth chasing imo.
And whilst your at it make sure your salary is always paid exactly on time and not 3 or 4 days early every month. |
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calculate your final pension fund value at retirement x 3 weeks interest- multiply by 5% - then allow for 25/30 years inflation- and the delay is costing you a good quality lollipop per month.
oh - btw unless things have changed in the few years in which i left administering a company pension scheme: the 19 days are taken by your company to do the admin/ checks each month to ensure accuracy for the entire payroll/make the payment ; we used the Pru and the day monies were paid over and funds cleared- they applied interest. |
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shouldnt you be happy your pension is losing money 3 weeks slower than the rest of us,
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if it is a unit-linked scheme you could actually benefit from this, especially if the unit value is lower
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You are right that, in this day and age, the process should be quicker. Some investment managers and scheme administrators have signed up to "straight through processing" (which basically means real time trading rather than putting in a request to buy, waiting for the transaction, then waiting for the contract note, then updating records etc etc.) but not all. Until they do, nothing will change.
The other problem is that the stautory requirement of 19 days after the month is too lax. But, whilst the managers are meeting that timescale they are doing nothing wrong. Ours are generally credited in the first couple of working days in the next month but the onus is on your HR/Pensions team to manage the providers to more aggressive timescales. By the way, Aspro is also right - early investment doesn't mean it would work in your favour! |
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Can't help - non-contributory pension here.
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i never been a great believer of the pension system.
Investments for your old age income yes,pension pyramid scheme no! I remember a few years ago a mate of mine was in serious financial difficulties and he confided in me for some help.I saw that each month he was paying hundreds of pounds into a pension pot. I said you cant afford to keep doing this and his reply was i cant afford not too. The cost of his debt was out stripping any return on investment he was going to get out of his pension. Whats the situation today ? His wife left him and he died last year before he was 50! Theres a moral in this story |
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The charges on these private pensions are daylight robbery.
When someone takes the open market option for their annuity for instance, the financial adviser who does the paperwork gets commission from the company based on 1% of the pot. That’s a grand for a few hours work on a £100,000 transfer. That has to result in a smaller pension for the pensioner, it’s nothing less than theft. |
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When someone takes the open market option for their annuity for instance, the financial adviser who does the paperwork gets commission from the company based on 1% of the pot
...and the rest! |
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Surely that's retiring snooker players only
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I won't have a pension .. only a slight government one
but if i owned property is that means tested and decreases any small pension i might get ? Not really bothered .. i'd rather sell drugs when i'm 67 .. just wondered  |
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Not at all Mc M. What you've earned will remain yours although keep in mind that this is based on current rules
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Thanks Aspro ... even if i owned a few buy to lets i'd still get my government pension then .. that's cool
Probably won't matter to me though as i hope to move abroad to retire |
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You'll still get your pension :)
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Cool .. i'll pay th £90 i owe then
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any income earned from buy-to-lets will be classed as earned income and taxed accordingly. Keep that in mind.
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yeah but i don't work ....
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Doesn't matter; your state pension, added to BTL income and any other taxable income could still put you into the taxed bracket
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I know thanks for the point though aspro
I guess my tax free allowance would be used up first ? If i was over that allowance i'd consider myself rich anyway |
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so will only ever pay tax when i'm rich
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Indeed it would and it'll be even higher once you turn 65
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the rentals or the allowance
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The Bills!
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I like you aspro .. are you an accountant or a financial adviser ? I guess i'm on the right track though .. if i have to pay tax i'll be doing ok ... and then i'm off to thailand  |
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financial adviser; usually I charge but I felt sorry for you
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that's what they all say
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