# What % does your employer pay?



## Humpback (14 Sep 2005)

For reasons too detailed to go into here, I have been lead to believe that I'm extremely lucky to be working for a company who are making a 9.7% pension contribution, to which I have to add 5.3%.

I was looking to move jobs (the detailed reasons) and the package I was offered elsewhere would have had a max contribution of 5%.

Having initially been told "don't bother about the pension stuff, sure isn't that 25 years down the road, it's the base that matters", I was then told that 4-5% was the average contribution by most employers today, and that I'd be lucky to get 9.7% anywhere else.

What are people getting here? Is this last statement reflective of how things are out there?


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## elcato (14 Sep 2005)

Hmm.. My last employer would pay 7% if I paid at least 5%. If I paid < 5% they would pay 5%. My present employer just matches my 5%. Just as a matter of interest did you put in 15.7% by choice or was that part of the employer's deal ?


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## SteelBlue05 (14 Sep 2005)

From my experience, in IT companies, the company typically puts in 3-5% based on your years of service.


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## Humpback (14 Sep 2005)

elcato said:
			
		

> Hmm.. My last employer would pay 7% if I paid at least 5%. If I paid < 5% they would pay 5%. My present employer just matches my 5%. Just as a matter of interest did you put in 15.7% by choice or was that part of the employer's deal ?


 
Apologies, my typo there. Should have said 5.3% rather than 15.7%. The total contribution anyway would have been up to 15% - and that was part of the deal - a must do. All of which was fine with me.


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## elcato (14 Sep 2005)

> I was then told that 4-5% was the average contribution by most employers today, and that I'd be lucky to get 9.7% anywhere else.


This was the general offers I was getting when I was looking to move so I guess yes is the answer.


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## gearoid (14 Sep 2005)

I guess I'm very lucky, I'm currently getting 14% from my company. I could see my pension going up to 18% if I stay another 5 years.

I was told that this is one of the most generous defined contribution schemes in the country. I have heard of a more generous scheme, in one of the smaller indigenous banks, but I'm not complaining with mine. My previous company paid very little as well and whatever age you are the pension should always be a consideration. To me it adds 10k to my basic as I would have to fund this otherwise. It makes it very difficult to leave my current job.

Banks seem to more generous than technology companies so the IT section of a banking/financial concern might be a smart choice for you.


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## Humpback (14 Sep 2005)

gearoid said:
			
		

> Banks seem to more generous than technology companies so the IT section of a banking/financial concern might be a smart choice for you.


 
Kind of thought that, though my experience doesn't really play that out. I'm in Telecoms (IT) at the moment, and the 5% max offer came from an Insurance company (IT).


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## asdfg (14 Sep 2005)

The max may be a contribution to a defined benefit pension check this out.


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## onekeano (14 Sep 2005)

Work for a large IT co. I pay 5% and they pay 10%

Roy


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## RainyDay (14 Sep 2005)

Multi-national IT company - I pay 7% & they pay 8%


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## TRS30 (14 Sep 2005)

Large Insurance company- I pay 20% and they pay 10%.


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## LDFerguson (15 Sep 2005)

According to Pensions Board figures, the average DC scheme is 5% Employer and 5% Employee.  DB schemes will generally have far higher Employer contributions, but they're not explicitly stated as a percentage of each member's salary.  

Liam D Ferguson
www.prsacentre.com


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## Breffni Boy (15 Sep 2005)

Small IT company - I pay 10% & they pay 0%

BB


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## asdfg (15 Sep 2005)

Large Insurance Company  
I'm in a defined benefit scheme. Employer pays all. New entrants have been paying 5% but got an increase to cover the contribution. So in effect the employer pays all even for new entrants.


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## GeneralZod (15 Sep 2005)

I pay 5.3% they pay 9.7%. Do we work for the same monolith?


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## legend99 (16 Sep 2005)

smallish IT company....they pay 6% for every employee regardless of age, experience or joining date. I pay 4% on top of that...as I'm still only 28 10% per annum I think is enough right now.


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## asdfg (16 Sep 2005)

10% going into your pension fund will probably only give a pension at 65 of approx 35% to 40% of your final salary. 

You need to be putting aside a larger proporation now or a much larger percentage in the future to give you a half decend pension at 65. You may want to retire earlier in which case the expected pension will be dramatically reduced.


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## wirelessdude (17 Sep 2005)

work for large multi national they pay 9.3% and i pay approx 5%..not totally sure....that is defined in my contract


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## legend99 (19 Sep 2005)

asdfg said:
			
		

> 10% going into your pension fund will probably only give a pension at 65 of approx 35% to 40% of your final salary.
> 
> You need to be putting aside a larger proporation now or a much larger percentage in the future to give you a half decend pension at 65. You may want to retire earlier in which case the expected pension will be dramatically reduced.



Well the other aspect to my background is that both myself and my wife have only 1 sibling each...both sets of parents would be cash rich, therefore, be it harsh to say it, or cruel to say it, but when the sets of parents pass on, its likely we will come into an amount of money. I think its fair to also be taking that into account.


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## Humpback (19 Sep 2005)

legend99 said:
			
		

> be it harsh to say it, or cruel to say it, but when the sets of parents pass on, its likely we will come into an amount of money. I think its fair to also be taking that into account.



And are you asking them not to spend their money while they're alive so that you'll be comfortable in your own old age? 

Harsh isn't the word for that kind of pension planning!!!


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## LDFerguson (20 Sep 2005)

I don't see anything in legend99's post that says he or his wife have asked their respective parents not to spend their money.


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## Friday (20 Sep 2005)

Warning. I've seen some employers use a contribution based on pensionable salary, i.e. they deduct one and a half times the SW retirement pension on the basis that this portion of your salary is already pensioned.


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