Company Pensions

[kev7937]

I've been offered a company pension which I believe my employer is legally obliged to do and as I understand it any contribution I make the company has to match it .

 

This leaves me with a dilemma in that it's a small company 6 full time employees inc the boss who happens to be a very good personal friend who I have known since long before we became tree people.

 

So it's obviously in my best interests to pay as much as I can afford into the scheme but is this going to affect the companies profit and his slice at the end of the year.

 

It's prob not the best thing to be employed by a friend but it has been ok so far and this is the first time I've really felt uncomfortable about our working/friend relationship.

[Ray1]

Im not sure but i think he will end up paying less tax so he wont be any worse off. Just ask him.

[Johny Walker]

I've been offered a company pension which I believe my employer is legally obliged to do and as I understand it any contribution I make the company has to match it .

 

This leaves me with a dilemma in that it's a small company 6 full time employees inc the boss who happens to be a very good personal friend who I have known since long before we became tree people.

 

So it's obviously in my best interests to pay as much as I can afford into the scheme but is this going to affect the companies profit and his slice at the end of the year.

 

It's prob not the best thing to be employed by a friend but it has been ok so far and this is the first time I've really felt uncomfortable about our working/friend relationship.

 

opt out & put yr money in to a rental property,better long term return.

[kev7937]

Im not sure but i think he will end up paying less tax so he wont be any worse off. Just ask him.

 

Mm, I get the impression he's not that keen on it and wanted to see if anyone knows the financial implications for the company before I went any further with him.

[spudulike]

I don't know the answer to your question but one thing is for sure, the earlier you start a pension, the more impact it will have on the final amount you have to retire on!

 

If you leave this sort of decision to your 30s, you will be having to save double what you would if you start in your early 20s - it is all about compound interest and how equities gain in value over long periods of time - just depends what sort of retirement you want in your later life!

[kev7937]

I don't know the answer to your question but one thing is for sure, the earlier you start a pension, the more impact it will have on the final amount you have to retire on!

 

 

 

If you leave this sort of decision to your 30s, you will be having to save double what you would if you start in your early 20s - it is all about compound interest and how equities gain in value over long periods of time - just depends what sort of retirement you want in your later life!

 

 

Yeah. Have already got one and could plough all the money into the company one and double up but don't want to stitch him up.

[Paul Jenks]

Within a year or so all companies are going to have to do this by law. Auto-enrolment is coming our way. You're not stitching him up. There is nothing wrong with looking after your long-term interests.

If an employer thinks so little of your input that he's not willing to contribute towards your pension, (something he'll have to do soon), he's not much of a boss.

It's just another business cost that'll affect every business across the land, same as holidays, fuel and tax.

[kev7937]

Within a year or so all companies are going to have to do this by law. Auto-enrolment is coming our way. You're not stitching him up. There is nothing wrong with looking after your long-term interests.

If an employer thinks so little of your input that he's not willing to contribute towards your pension, (something he'll have to do soon), he's not much of a boss.

It's just another business cost that'll affect every business across the land, same as holidays, fuel and tax.

 

 

I wasn't sure if they have to offer you a pension or have to give you a pension, I've told him I'm up for it just wasn't sure how much it will cost the company matching my contributions

[teepeeat]

He only has to match your contribution up to a certain percentage - in my case the company will match up to a maximum of 5% - ie, they will match the first 5% of my wages should I choose to put it in. Dont really know much about the pension market, but I believe this is supposed to be a decent contribution?

[spudulike]

He only has to match your contribution up to a certain percentage - in my case the company will match up to a maximum of 5% - ie, they will match the first 5% of my wages should I choose to put it in. Dont really know much about the pension market, but I believe this is supposed to be a decent contribution?

 

5% is a healthy contribution, many just do 1%, the bare minimum and the good thing is that any pension contributions are pre tax so you are making pension payments that are free of tax:thumbup:

 

I believe all companies over a certain size will have to offer a pension to their employees -it is in reaction to the ever increasing number of pensioners and the fact the government can't afford to give them a pension!