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Aspro
19 Feb 19 11:12
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Date Joined: 16 Dec 02
| Topic/replies: 17,651 | Blogger: Aspro's blog
For those of you that are in a company 'auto-enrolment' pension (if any of you actually work that is) be advised that from April the contributions will be increasing quite heavily.

Currently the contributions are 5% of which 2% is paid by the employer. In April this will raise to 8% with 3% being paid by the employer.

Assuming an income of £24k, this will mean that your contributions will increase by £40 per month (£32 net), reducing your net (take-home) pay, however; there is some good news.

The annual allowance is being increased by £650 to £12,500 per annum, which should give you another £10 per month in your net pay.

I believe this to be factual if my understanding of the changes is correct. Hopefully it will be helpful to some of you.
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Report Hamsterdam February 19, 2019 5:52 PM GMT
This will cause people to get rid imo especially as there is no guarantee of what the pension age will be when many young people retire. If you are settled and in late 30's/40's/50's then maybe keep it on but for younger people I can see why they would want to get rid of it.
Report dave1357 February 19, 2019 6:20 PM GMT
Hamsterdam • February 19, 2019 5:52 PM GMT
This will cause people to get rid imo especially as there is no guarantee of what the pension age will be when many young people retire.

This has nothing to do with the state pension.  There was some debate about linking the age private pensions could be taken to 10 years before the state pension age, but that hasn't been fully activated afaik.
Report Crisp77 February 19, 2019 7:33 PM GMT
If you are used to living off £24k you'll probably need to stick more than that in your pension
Report Aspro February 19, 2019 7:45 PM GMT
You can draw a private pension at 55 today, but there is talk that this will rise to 57 soon. Youngsters need to pay into this but they probably won't; it is all about today, just as it was when most of us were young.
Report Johnny The Guesser February 20, 2019 7:11 AM GMT
Suck it up is my advice.

Bank the extra employer contributions , and the tax relief .

Thank me when the pot matures.
Report Just Checking February 20, 2019 12:15 PM GMT
An auto enrolement pension will be a private pension. Ahh others explain this all above.
I like pensions. Especially if you are higher rate tax payer, there are a no brainer.
Report Nebs February 21, 2019 8:11 AM GMT
There will come a time when the state pension is means tested. Everyone needs, say, £170/week to survive, got no other pensions then your state pension will be £170/week, got another pension of £80/week your state pension will drop to £90/week, got another pension of £200/week then thanks for your NI contributions but you are getting naff all.
Report 1st time poster February 21, 2019 11:07 AM GMT
nowt new talk of the work place 30 years ago ,you either want nothing or a huge pot anything in between ,eventually you,ll be no better off, need 200 grand plus to get 800 a month, eventually anything less and you,ll be paying for your own state pension
Report 1st time poster February 21, 2019 11:11 AM GMT
without 6% isa,s from 30 years ago ,high interest rates,and the cycle of recessions ,down turns,events such as Brexit etc,whatever the guru,s tell you getting 200,grand in a stocks invrested pension is a mammoth task
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