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pension question?
nick205 - 4/8/11 at 08:57 PM

I'm about to change jobs going from one with a stakeholder pension where the employer contributes to one with no pensiin scheme at all.

I will obviously need to set up a private pension, but how does this work in terms of income tax? In my current scheme my contributions are made pre-income tax deductions. Is this the same for a private pension?

macc man - 4/8/11 at 09:15 PM

I have a private pension and my payments are net of tax paid. The amount you pay is less than that invested in the scheme.

big-vee-twin - 4/8/11 at 09:19 PM

If the company your going to doesnt offer a stakeholder, they are breaking the law if they have more than 5 employees

Proby - 4/8/11 at 09:25 PM

quote:
Originally posted by big-vee-twin
If the company your going to doesnt offer a stakeholder, they are breaking the law if they have more than 5 employees


As said, if more than 5 employees they have to provide a pension, although they DO NOT have to contribute.

Bare - 5/8/11 at 03:25 AM

Hopefully the Salary received at the very least equals that .. IF.. the employer had to contribute /match your contributions to the pension scheme.
IF not yer Screwed and could likely be better off at Tesco's.

Ninehigh - 5/8/11 at 06:45 AM

What's a pension?

Peteff - 5/8/11 at 08:24 AM

quote:
Originally posted by Ninehigh
What's a pension?


It's where you pay someone money to give back to you in later years and they hope you die before they have to pay out. It's a bit like gambling.

nick205 - 5/8/11 at 09:32 AM

quote:
Originally posted by Peteff
quote:
Originally posted by Ninehigh
What's a pension?


It's where you pay someone money to give back to you in later years and they hope you die before they have to pay out. It's a bit like gambling.



A very fair analogy I feel

nick205 - 5/8/11 at 09:36 AM

@ Proby and big vee twin

You're correct! having clarified with them they do indeed offer a stakeholder pension scheme, but they don't contribute to it.

This simplifies things as I can now calculate the extra I'd need to contribute to match my current employee + employer contributions. The new salary is higher, but obviously the offset of extra pension contributions needs to be deducted to get a true value.

Cheers guys, as ever LCB is universal resource and quick too

Ninehigh - 5/8/11 at 12:16 PM

quote:
Originally posted by Peteff
quote:
Originally posted by Ninehigh
What's a pension?


It's where you pay someone money to give back to you in later years and they hope you die before they have to pay out. It's a bit like gambling.


I'm not taking that bet then If I haven't done something stupid enough to get me killed by the time I'm 70/80/90 then I've done something wrong