Pensions

[yasockie]

It's hard to admit that, but I am clueless about pensions.
Just to gauge a permie offer against my Ltd income, I would like to compare the whole package, which includes as they described, a generous pension scheme.
It is a public sector client and they use this: JSS (Joint Superannuation Services)
What does 8.25% mean - does the employer contribute 8.25% of my annual salary?
It seem that they will match an extra 3%, which also seems nice.

Finally, until now I've had to invest most of my Ltd profits back into the business and I was unable to set up such a generous scheme for myself. Does it make sense for some reason, to start that now and transfer to the above so that it counts as an extra year or some similar benefit?

Finally, I know there's quite a few places on the web, where I could read a lot more about pensions, can you recommend any particular ones?

[kevpuk]

Go speak to an IFA - by far the best starting point IMHO

[stek]

Go speak to an IFA - by far the best starting point IMHO

...and they'll sell you the one they get the biggest kickback from....

[kevpuk]

...and they'll sell you the one they get the biggest kickback from....

Don't need to buy - good for first-base explanations and advice

[mudskipper]

Civil service pension is usually a 'final salary' scheme, so removes the whole uncertainty element which is what I hate about pensions. Sounds like a good scheme to be in.

[malvolio]

How it works for permies is that you make a "voluntary" pension contribution from your pre-tax salary, say 5%. Your employer then puts in an amount as well; in the case quoted, 8.25%. So your pot grows by 13.25% of your gross a year. Of course, you have effectively reduced your gross by 5% and your employer is only paying ErNICs on 95% of your gross so his 8.25% is actually around 7%.

So comparing it to YourCo's position isn't straightforward. Speak to an expert.

[Martin at NixonWilliams]

Don't need to buy - good for first-base explanations and advice

I agree - It's always good to have a free consultation just to get an idea of what's out there, then do your own research and compare what you have been offered with what the providers can offer you directly.

[Vandalay]

...and they'll sell you the one they get the biggest kickback from....

They can't do that since RDR last year. It's all fee based now.

[yasockie]

How it works for permies is that you make a "voluntary" pension contribution from your pre-tax salary, say 5%. Your employer then puts in an amount as well; in the case quoted, 8.25%. So your pot grows by 13.25% of your gross a year. Of course, you have effectively reduced your gross by 5% and your employer is only paying ErNICs on 95% of your gross so his 8.25% is actually around 7%.

So comparing it to YourCo's position isn't straightforward. Speak to an expert.

So (8.25+3)*2=22.5%, almost a quarter of of my annual salary gets contributed, which must be good?

[stek]

So (8.25+3)*2=22.5%, almost a quarter of of my annual salary gets contributed, which must be good?

I was going to comment on this cos it does;t look right but I'm arseholed now...

Chimay....