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Previously on "Pension contribution % at IB vs hedge funds"

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  • TheDude
    replied
    Originally posted by DelboyTrotter View Post

    I know of another investment management firm that makes a 16% monthly contribution and matches these contributions up to 2% as well as make an additional contribution equal to 10% of the monthly amount you pay. So if you paid 2% of your salary into your pension each month, you’d receive a contribution from the company of 18.2% on top of that.
    Do they pay a relatively low salary (on which pension is based) and the the rest as non discretionary bonus?

    Leave a comment:


  • NowPermOutsideUK
    replied
    Happy Friday fellow contractors

    Could I please ask your advice and hope I do not get flamed on the following

    I have started back in the UK on PAYE perm. I want to pay into my pension to reduce my tax - I think I have two options
    1) Have the payroll deduct the amount from my payslip and enroll into the group pension (The employer wont contribute anything extra if I do that including the NI that they save)

    2) Make a pension contribution myself at year end and recover the tax saving by self assessment which I am required to submit each year.


    What is the difference between (1) and (2) from the employee (ie my point of view) - I remember eek saying something along the lines of if I did (1) then the NI the employee paid would also be reduced but I cannot find that thread and I am not sure if that is the case

    For arguments sake suppose I make a 30K pension contribution through option (1) or option (2) - What would thenet difference be if any?!

    Happy Friday

    Leave a comment:


  • jatinder
    replied
    It's also quite common for the pension contribution percentage (say 10%) to be based on a "pensionable" salary than your "actual" salary.

    eg. (from memory) At UBS, the max pensionable salary was £100K when I was permie there.

    --Jatinder

    Leave a comment:


  • eek
    replied
    Originally posted by ContractorBanking View Post

    Wow, 3% is paltry.

    Out of interest, what’s the lowest % the employer is obliged to contribute?
    3%

    Leave a comment:


  • ContractorBanking
    replied
    Originally posted by NowPermOutsideUK View Post
    I just took a role back in London now. Financial services. Salary is high as perm but pension is 3% from employer!
    Wow, 3% is paltry.

    Out of interest, what’s the lowest % the employer is obliged to contribute?

    Leave a comment:


  • mattster
    replied
    Originally posted by DelboyTrotter View Post
    I know of another investment management firm that makes a 16% monthly contribution
    Sounds generous, but is it really a "contribution" or is it just the employer's NI that they no longer have to pay? I think the maths for what they pay in NI (13.8%) with respect to your salary would work out at nearly bang on 16%.

    Leave a comment:


  • NowPermOutsideUK
    replied
    I just took a role back in London now. Financial services. Salary is high as perm but pension is 3% from employer!

    Leave a comment:


  • DelboyTrotter
    replied
    Currently employers 10.8% at an investment management firm in the city, no matching of any employee contribution: just 10.8% and you can throw in what you want.

    I know of another investment management firm that makes a 16% monthly contribution and matches these contributions up to 2% as well as make an additional contribution equal to 10% of the monthly amount you pay. So if you paid 2% of your salary into your pension each month, you’d receive a contribution from the company of 18.2% on top of that.
    Last edited by DelboyTrotter; 27 October 2021, 19:38.

    Leave a comment:


  • eek
    replied
    Originally posted by ContractorBanking View Post

    it used to be 20% at my age
    Yes it used to be the case that percentages differed with the age of the employee but it’s no longer the case.

    Leave a comment:


  • ContractorBanking
    replied
    Originally posted by eek View Post

    Which part of used did you not grasp.
    it used to be 20% at my age

    Leave a comment:


  • eek
    replied
    Originally posted by ContractorBanking View Post

    20% is very geneous, that's awesome.

    Are you saying the employer pension contribution varies with age, the older you are, the more generous the employer's input?
    Which part of used did you not grasp.

    Leave a comment:


  • ContractorBanking
    replied
    Originally posted by TheDude View Post

    Deutsche offered a flat 11% for a perm position (which I declined) - it used to be 20% at my age.
    20% is very geneous, that's awesome.

    Are you saying the employer pension contribution varies with age, the older you are, the more generous the employer's input?

    Leave a comment:


  • TheDude
    replied
    Originally posted by ContractorBanking View Post
    It's been a while since I was a permie but what are the typical pension contribution rates at tier 1 IB these days and US hedge funds?

    I was at RBS in 2006 where they contributed 13% into your pension.
    In 2008 I was at Barclays where their contribution was 10%.

    I've been applying for permie roles and expecting to get two offers - IB in Canary Wharf and a hedge fund. I'm in my mid-40's so pension contribution is high on my list.

    No idea on the hedge fund pension contribution but I've seen rates around 3% in financial services (non-IB) so have no idea on the going rates at hedge funds. I hope this is not typical as its abysmal.

    Anyone have any recent experience on pension contribution rates, would love to hear.


    Deutsche offered a flat 11% for a perm position (which I declined) - it used to be 20% at my age.

    Leave a comment:


  • eek
    replied
    It depends on what that firm thinks is enough.

    so it may be little or it may be 80% of your salary (which is roughly what the Bank of England offers from distant memory).

    Leave a comment:


  • ContractorBanking
    started a topic Pension contribution % at IB vs hedge funds

    Pension contribution % at IB vs hedge funds

    It's been a while since I was a permie but what are the typical pension contribution rates at tier 1 IB these days and US hedge funds?

    I was at RBS in 2006 where they contributed 13% into your pension.
    In 2008 I was at Barclays where their contribution was 10%.

    I've been applying for permie roles and expecting to get two offers - IB in Canary Wharf and a hedge fund. I'm in my mid-40's so pension contribution is high on my list.

    No idea on the hedge fund pension contribution but I've seen rates around 3% in financial services (non-IB) so have no idea on the going rates at hedge funds. I hope this is not typical as its abysmal.

    Anyone have any recent experience on pension contribution rates, would love to hear.



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