Confusing of Pensions

[Bovineofdoom]

Hopefully someone will give us the answer!! Although I feel like I really should know this but I really dont!

I don't get this pension stuff really. Iv never had to do any pension things before, not even the workplace one so its all new to me. It just seems like quite a bit of money to lose every month, but then maybe I'm working it out wrong

I doubt you are working it out wrong, the civil service pension is a very good pension but you need to pay a lump sum each month. Once you start receiving a regular wage you forget about the pension part and start to see it like PAYE/NI payments.

[KobiU1962]

Thanks, that's what I put and posted it now.

I have sat down with my boss this morning and he worked it all out for me and told me what I'd be paying and id got it nearly right. It just seems like such a chunk to have taken every month. But like you say, you get used to it. Is it actually worth having or is that a stupid question?

[RKJL]

its a really good pension, well worth it! from what I gather it's almost like your wages after you retire...but it depends how long you pay In for. my grandad for in the service for nearly 40 years and said it was great. out of curiosity how much was the lump sum that you work out?

[KobiU1962]

I haven't ever had any kind of pension set up so I suppose I should start. I'm 32 so I could build up a few years.

We worked it out with the Alpha one, the 39 hour contract salary is £28,950 and it worked out to about £120 a month but because they take it before tax, it would mean actually losing about £90 a month. Don't quote me on that but thats what me and my boss sort of come up with. Someone please correct me if iv totally got that wrong!

[worriedfather]

I haven't ever had any kind of pension set up so I suppose I should start. I'm 32 so I could build up a few years.

We worked it out with the Alpha one, the 39 hour contract salary is £28,950 and it worked out to about £120 a month but because they take it before tax, it would mean actually losing about £90 a month. Don't quote me on that but thats what me and my boss sort of come up with. Someone please correct me if iv totally got that wrong!

What you need to realise is that at your age you won't draw your state pension until you are at least 68, at current rates it's about £160 per week.

In your own words you've never contributed to a personal pension to date so what will you live on once you retire?

If funds allow I would be looking at paying as much into the scheme as you can afford because, believe you me, those next 30yrs will fly by!

Regards.

[YNWA]

I haven't ever had any kind of pension set up so I suppose I should start. I'm 32 so I could build up a few years.

We worked it out with the Alpha one, the 39 hour contract salary is £28,950 and it worked out to about £120 a month but because they take it before tax, it would mean actually losing about £90 a month. Don't quote me on that but thats what me and my boss sort of come up with. Someone please correct me if iv totally got that wrong!

Them figures are wrong sorry
I know 100% that the extra 2 hours are non pensionable (you only pay in based on a 37 hour contract)
So I doubt that the London weighting will be pensionable too
I would say defiantly the new red site payment wouldn't be pensionable either
Could be wrong on the last 2 so don't work your finances out on my day so

[manc-apollo]

You are 100% correct YNWA the only part of your salary that is pensionable is you 37 contracted hours. And the Alpha pension is around £100 a month

[YNWA]

Thought that would be the case if the extra contracted hours wasn't pensionable I didn't think anything else would be

[9851colle]

I have stayed at 37hrs even though could pick upto 41hrs. Just just PP When it suits me. I know an Officer who has done over 150 hours of PP for yesterday's pay day.

[KobiU1962]

As I said iv never done this before so it really did confuse me. Where I currently work, I don't even get the workplace pension until January so it really is something new to me and not something id really thought about until now. I know it will come round quick but retirement seems a long way off at the minute.

It could just make it clearer to work out, it doesn't mention anything about only 37 hours being pensionable, it just says they will take a percentage of what you earn so that's why I thought it would be based on the 39 hour contract if that's what I decided to do and was trying to get a rough estimate from that.

Thankyou for clearing it up for me

[Bagpuss]

On the steria additional job description info page it puts alpha as an avg of 5.45% contributory & avg of 18% non-contributory(wage dependant)! Only on basic though so based on the 37,39 or 41 that you sign up for! Any allowance or o/t isn't! So for i.e. 39 hours basic = £22396 would be approx £101 A month you put in. They put another £336 in. So personally I'd rather sign up to the 41 hrs & alpha! Basing my future on an accumulated pension pot could be lucrative however just as likely not with the low rates & brexit!

[manc-apollo]

All contracts are 37hrs. The added 2-4 hours are not pensionable it states it in your contract and on your pay slip.

[Porecruit17]

On the pensions form where it says what percentage would you like to contribute on the pensionable pay, is this additional to the percentage you already contribute or is this what I will be contributing ? Ovbz they match up to 3% and add there additional percentage depending on age.(alpha)

[Burtonboy]

Anyone unsure about pensions should seek independent financial advice, but any financial advisor is going to advise joining a defined benefits scheme, the only question is, are the benefits of the scheme going to be enough to fill your pension aspirations, if it’s not you’re going to need to look at additional products to fulfill any shortfall.

[worriedfather]

Or up your contributions to the scheme you join, don't forget whatever you pay is pre-tax so a very efficient way of saving.