Pension advice
Author
Discussion

Staplebug

Original Poster:

135 posts

171 months

Friday 30th May 2014
quotequote all
Hi all,

The company i work for has offered me 2 options with regards to what pension scheme I enrol in.
I am having a hard time choosing which one to go for.
At present I cannot make any addition contributions to my pension however I hope this will change in 5-6 years’ time.

Scheme 1
You contribute 3% of your Pensionable Salary each month to Scheme 1. You can also contribute to the Scheme 1 Investment Account in order to boost your pension savings. CompanyA credits your Credit Account with 20% of your Pensionable Salary, which is available to you at age 60, and will match your contributions to the Investment Account up to 3%.

Scheme 2
CompanyA contributes 10% of your Basic Salary to your Scheme 2 account each month. You do not need to contribute, but if you choose to contribute, CompanyA will pass on its National Insurance saving (currently 13.8% of your contribution) to your account.

PurpleMoonlight

22,362 posts

187 months

Friday 30th May 2014
quotequote all
Assuming Basic Salary is not higher than Pensionable Salary, the Scheme 1 would appear to be a no brainer.