Employers Contribution DC

[Risk Reversal]

Hi,

In the context of moving job, what would people consider a good employer contribution to a DC pension?

Is 5-10% considered the norm or would 15-20% be regarded as in the minority? Reviewing a few opportunities and whilst salary/flexibility and job satisfaction are an important factor, I do want to focus on this aspect.

Perhaps people could share % without the need to specify the employer and just mention the industry. Please highlight whether its core pension rather than AVC matching also.

I have heard higher percentages were more common a while back as many private companies switched from a DB to a DC structure for new hires.

Thanks.

 

[RedOnion]

Some previous responses here:

Employer contributions to DC plan

What is a good employer contribution to a DC plan? Looking at possibility of moving companies and trying to suss out what is a good %. Salaries seem to be higher ( grass being greener...) but trying to look at the total package of what's on offer. Not on a high salary or management so don't...

www.askaboutmoney.com

You'll find generally that companies which previously had defined benefit pension will have above average employer contributions.

 

[Conan]

The “average” Employer contribution to a DC plan would be c7%. Better Employers will contribute 10% plus. As RedOnion stated, Employers who have closed down a DB scheme and moved to DC will tend to contribute at the higher end.

 

[Risk Reversal]

The “average” Employer contribution to a DC plan would be c7%. Better Employers will contribute 10% plus. As RedOnion stated, Employers who have closed down a DB scheme and moved to DC will tend to contribute at the higher end.

Thanks

 

[Risk Reversal]

I reckon I have to figure out the trade off of a relatively small increase in salary versus the trade off in a step down in pension contribution