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Post by stusco on Mar 1, 2021 19:26:06 GMT 1
Anyone know anything about salary sacrifice,my work just announced we’re moving to this !!
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Pension
Mar 1, 2021 20:40:57 GMT 1
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Post by shaunthe2nd on Mar 1, 2021 20:40:57 GMT 1
Yes it work well for you unless you need to show a higher salary to get a mortgage. You get benefits in terms of reduced NI and if yr company contribute their NI savings to your pension pot you on a winner. I'm maxing out on it at mo.
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Pension
Mar 1, 2021 20:47:11 GMT 1
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Post by midlifecrisisrd on Mar 1, 2021 20:47:11 GMT 1
Yes I've been on it for years
Your pay slip still shows the higher salary but in deductions it shows a salary sacrifice amount
You usually get the same take home pay but you get more pension contribution
Steve
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Post by stusco on Mar 1, 2021 21:17:16 GMT 1
Just read it again the tight b*****ds are keeping their ni savings,no surprise they didn’t top up the furlough payments either
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Post by reedpete on Mar 1, 2021 21:41:29 GMT 1
maybe you could ‘negotiate’ with them... If you decline the salary sacrifice route.....’because you want to have the option to flex your cash flow’, have all your salary paid PAYE, then make your own contribution at the end of the tax year...the employer would get no NI benefit, it will all go to the government, but you would get same amount going into your pension . Maybe they would like to share the NI benefit 50/50 with you.... Ofcourse if you are small fish in big company who are turning the screws then I wouldn’t want to be the one to encourage you to put your head above the parapet....
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Post by stusco on Mar 1, 2021 22:12:10 GMT 1
There is an option to opt out ,weve got 30 days notice,its just I don’t trust them they already cut our wages by three grand last March when the lockdown kicked in to pay for everyone sitting in the hoose while we were working
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Post by shaunthe2nd on Mar 1, 2021 22:45:16 GMT 1
You will be slightly better off overall (salary + pension contribution) due to your own NI savings, but the main benefit of salary sacrifice is if they tip in there NI savings into your pension. This way the cost of employing you is the same for them, but you get an improved package. As stated above, maybe try negotiate on it so that you both win. I'm trying to boost my pension before I retire and my company were quite open to this when I suggested it, and hence I have maxed what I can put in this way.
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Post by midlifecrisisrd on Mar 1, 2021 22:46:12 GMT 1
Companies can be right tw4ts 🙄
We weren't given the option, just gave us notice it was happening and explained what the benefits to either side
They have been good to me through furlough but heard something the other week that to me was mortally wrong
There are a lot of us on flexi furlough so we work days when there is work and furloughed days when there isn't (full pay on work days, 80% when not)
Some guys are being encouraged to take furlough days but if they are too busy they are asking them to work overtime one day to clear work so they can be furloughed the next day so the company can claim the money off the Gov
Steve
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Post by mickt1964 on Mar 1, 2021 22:52:01 GMT 1
Pension what does that mean?
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Post by rigga on Mar 2, 2021 12:20:12 GMT 1
We had a smart pension option, didn't opt for it as it just seemed more of a benefit for the company than for me, was late in my working life so wouldn't have made that much difference, but I wasn't in the mood to help them.
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dc
Thrash Merchant
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Pension
Mar 2, 2021 12:53:49 GMT 1
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Post by dc on Mar 2, 2021 12:53:49 GMT 1
It seems a pretty straight forward thing to do but remember, whilst you get the tax benefit now by paying more into a pension and perhaps get the extra growth, when you come to take money out, you will be taxed on it at the applicable rate at the time (tax free lump sums aside). Plus you don't have the freedom to do as you please with your money as you would in an ISA for example, which is not taxed. There are a lot of things to consider, age, current liabilities etc. but either way, doing something is better than nothing. I would try and read up about it and get some solid advice if need be. From what I have seen, pensions are something people contribute towards because that is what colleagues are doing who don't know much either. That's not saying don't do it but better to know what you are doing and not look back wishing you had done something differently.
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Pension
Mar 2, 2021 14:12:54 GMT 1
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Post by chrisg on Mar 2, 2021 14:12:54 GMT 1
If your over 55, you can book a free phone consultation with government pension wise. They dont give you advise , just tell you your options.
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Post by julianboolean on Mar 2, 2021 14:29:17 GMT 1
If your over 55, you can book a free phone consultation with government pension wise. They dont give you advise , just tell you your options. I don't need a pension adviser to tell me that when I retire I'm financially f**ked, don't know what my current employers pension will get me, but my 10 years at BT gives me a pension of £179 a year.
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dc
Thrash Merchant
Posts: 360
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Pension
Mar 2, 2021 14:56:19 GMT 1
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Post by dc on Mar 2, 2021 14:56:19 GMT 1
If your over 55, you can book a free phone consultation with government pension wise. They dont give you advise , just tell you your options. I don't need a pension adviser to tell me that when I retire I'm financially f**ked, don't know what my current employers pension will get me, but my 10 years at BT gives me a pension of £179 a year. One thing you can do is make sure you have paid enough full rate NI contributions which are needed to get your full state pension. You need 35 years. You can get a projection which will work out if you will have paid enough by the time you retire, if not,you can purchase some extra years to catch up or plug gaps.
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Post by stusco on Mar 2, 2021 16:22:47 GMT 1
Where can i find this out ?my wife might need to do this as she got bad advice when she was a youff You can get a projection which will work out if you will have paid enough by the time you retire, if not,you can purchase some extra years to catch up or plug gaps.
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Post by steve h on Mar 2, 2021 16:33:12 GMT 1
Pension what does that mean? If you are an employer, its another bloody expense and more paperwork for you, as you are now libel for someone else's old age fund. However if you are a civil servant, it is an extra (over the normal old age pension that everyone gets) pension, paid for by funds that ALL tax payers have contributed to. And if you took out your own pension when you were a teenager only to see it given to already retired people to prop up their payments.... Pension can be called "a waste of money" Money which could of been spent on bike and booze, but you chose to listen to the Equitable Life salesman. Or you could just die before you see any of it, however funded, well...its just a bet at the end of the day if you live to retirement age you win, if you don't, somebody else gets to spend it.
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Post by steve h on Mar 2, 2021 16:36:54 GMT 1
Where can i find this out ?my wife might need to do this as she got bad advice when she was a youff You can get a projection which will work out if you will have paid enough by the time you retire, if not,you can purchase some extra years to catch up or plug gaps. Ring Gov NI ins contributions office, they'll tell you if you need to buy anymore stamps to top you up. I did, years ago. I think you need 40 yrs worth of stamps?
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Pension
Mar 2, 2021 16:42:49 GMT 1
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Post by chrisg on Mar 2, 2021 16:42:49 GMT 1
Where can i find this out ?my wife might need to do this as she got bad advice when she was a youff You can get a projection which will work out if you will have paid enough by the time you retire, if not,you can purchase some extra years to catch up or plug gaps. Ring Gov NI ins contributions office, they'll tell you if you need to buy anymore stamps to top you up. I did, years ago. I think you need 40 yrs worth of stamps? You can go on line a d get a state pension forecast. Pension wise are not advisers, they tell you your choices. Knowledge is power.
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dc
Thrash Merchant
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Pension
Mar 2, 2021 16:59:50 GMT 1
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Post by dc on Mar 2, 2021 16:59:50 GMT 1
Where can i find this out ?my wife might need to do this as she got bad advice when she was a youff You can get a projection which will work out if you will have paid enough by the time you retire, if not,you can purchase some extra years to catch up or plug gaps. You can do it online as mentioned above or you can call and have them send a fully printed sheet so you will always have their original hard copy as a starting point. They will tell you it is available online but will (or did) send them if you insist. Not everyone is online at any given point.
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Post by midlifecrisisrd on Mar 2, 2021 17:22:02 GMT 1
If you have a Gov gateway account (If not you can register) you can view what your state pension is like
Steve
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Post by stusco on Mar 2, 2021 17:37:46 GMT 1
Easier said than done ! Im trying to register you have to leave to check your email for the code and when you come back you have to start again😡 i need two ipads
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Pension
Mar 2, 2021 18:44:00 GMT 1
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Post by beardy on Mar 2, 2021 18:44:00 GMT 1
Easier said than done ! Im trying to register you have to leave to check your email for the code and when you come back you have to start again😡 i need two ipads I often use my phone and laptop together to get round the email being sent and read whilst still online on the other device.
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Pension
Mar 2, 2021 18:52:03 GMT 1
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Post by midlifecrisisrd on Mar 2, 2021 18:52:03 GMT 1
That's what I do. Laptop and phone 😁
Steve
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Pension
Mar 2, 2021 19:09:11 GMT 1
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Post by mick858 on Mar 2, 2021 19:09:11 GMT 1
You may only get the basic new state pension with 35 years NI contributions. I had 40 years when I finished work but was £40 a week short of full pension because my company pension had been opted out. I can make some up by paying the missing years, almost £6k. As if that's gonna happen. Best to get some independent advice.
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Pension
Mar 2, 2021 19:11:25 GMT 1
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Post by midlifecrisisrd on Mar 2, 2021 19:11:25 GMT 1
I had opted out but opted back in about 20 years ago
Last checked years ago and think it said I'd be fully paid up by 53
Steve
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Post by rigga on Mar 2, 2021 23:23:02 GMT 1
I'm 4 years short as was opted out for a long time, I'm gonna wait to before state pension age to see if its worth buying the qualifying year's.
If I'm decrepit and falling apart by then, probably not worth it.
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Post by LC_BOTT on Mar 3, 2021 10:10:20 GMT 1
The state pension arrangements changed in 2016 I believe, so the '35 year rule' doesnt work as me and Rigga found out, (I too am 4 years short now) Good thing is you will be better off, as pension is around £175 compared to what could have been £130 ish??
It costs £780 per year to add £5.20 per week to your existing pension if you're short of years, payback in 5 years so got to be a win win, if still healthy.
At least thats what I've found out, the online estimate tells you what you get now and what it could be if topped up, and also shows all accrued years, (full or part full).
If you've done a import/NOVA you should already have a password etc sorted.
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dc
Thrash Merchant
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Mar 3, 2021 13:12:01 GMT 1
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Post by dc on Mar 3, 2021 13:12:01 GMT 1
If you had opted out during the time you missed those years, you may be better off having a pot of funds that were known as protected rights. That may well be worth more than the portion you need to spend on the top up.
There is also the possibility of delaying your pension and having a higher weekly payment. Works out about £10 a week more after 52 weeks, it used to be more beneficial but the gain was cut some time ago to the point it will take some catching up before you end up in pocket so in isolation, unless one is staying at work, it is not so appealing as appealing as it once was.
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Post by chrisg on Mar 3, 2021 16:36:47 GMT 1
I'm 4 years short as was opted out for a long time, I'm gonna wait to before state pension age to see if its worth buying the qualifying year's. If I'm decrepit and falling apart by then, probably not worth it. By the time you get to state pension age, they will have moved to to 104. I think its £175/week or 9k/year. Not good, but if it is backed up by a company or personal pension then may be ok.
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Pension
Mar 3, 2021 18:29:02 GMT 1
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Post by rigga on Mar 3, 2021 18:29:02 GMT 1
I'm 4 years short as was opted out for a long time, I'm gonna wait to before state pension age to see if its worth buying the qualifying year's. If I'm decrepit and falling apart by then, probably not worth it. By the time you get to state pension age, they will have moved to to 104. I think its £175/week or 9k/year. Not good, but if it is backed up by a company or personal pension then may be ok. Well ive got 12 years before I can claim it, with annual increases by then, added to my railway pension, I should be able to cope, and its generally recognized that your spending needs decrease in old age, so who knows what actually is enough.
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