GuestFebruary 11, 2019 4:08 amPersonal FinanceComments Off on Is 7% pension from an employer decent?0 views
I have a job interview tomorrow and they list a 7% contribution as a benefit. Wondering if this is good? It’s only for a 22k a year admin job, so nothing fancy where I’d expect to be treated fancy. I can’t remember what contribution my current employer does, but don’t think it is this high.
7% is good. The legal minimum employer contribution is only 3%. Whatever employer you decide to go for, you should definitely aim take full advantage of their pension contributions by contributing the requisite amount from your own salary.
It's mad when us youger people start to consider pensions, it's something we don't really have to look forward to. Pensions 20 years ago would average around 7-8% many places, public sector, even more. My dad received more than 11% working for the fire-service, and matched it. Now my rents live like monarchy (large exaggeration but they paid the mortgage and a chill af)
I work tech recruitment now, and 5-7% is good, any more than that is excellent, and if a company still pays 10%, then they really give a shit about you and hopefully you can stick around for a while!
Hopefully the legal minimum goes up to 5% soon (and the norm is to match it), as it's important for a population to be able to support itself when it reaches retirement age, and I wonder if a lot of people my age (26) and younger don't pay enough attention to the importance of saving, budgeting and getting yo' ass a decent pension!
You good though.
My employee does 7% which ups to 8% if one contributes more than 7%.