Case studies

Find out what Amber, Red and Blue are saving towards their future and how their employers are helping. Why not calculate the cost of membership and find out how contributions build in your fund by using the pension modeller.

Amber

Age: 23
Salary: £14,000
Priorities: would rather be spending money on a holiday

Currently saving 0% a month for retirement

Employer contribution structure:

Member contribution	Employer contribution	Total contribution
3%	3%	6%
4%	4%	8%
5%	5%	10%

Amber's employer only contributes to the pension if their employees do. Because Amber doesn't make any savings for the future Amber is missing out on at least a 3% contribution from their employer - that's like another 3% on top of Amber's salary which is saved for the future.

Show Amber in the Pension Modeller

Red

Age: 42
Salary: £21,000
Priorities: has a number of financial commitments which mean there isn’t much to spare at the end of each month

Currently saving 4% a month for retirement

Employer contribution structure:

Member contribution	Employer contribution	Total contribution
4%	8%	12%
5%	10%	15%
6%	12%	18%

Red’s employer generously doubles any contribution that their employees make. This means that Red only needs to save 4% a month, and the actual amount being saved for the future is 12% of Red’s salary. Hard to turn down.

Show Red in the Pension Modeller

Blue

Age: 59
Salary: £24,000
Priorities: could afford to contribute more but doesn't know if it's worth it so close to retirement

Currently saving 1% a month for retirement

Employer contribution structure:

Member contribution	Employer contribution	Total contribution
1%	5%	6%
2%	6%	8%
3%	7%	10%

Blue has saved 1% a month for retirement for the last seven years and has benefited from employer contributions. Blue has built up a small pot of savings for the future and has a bit of cash to spare. Blue decides to boost their savings and increases the monthly contribution to 3%. This means that Blue’s employer also increases its contribution by an extra 2% - in total an extra 4% towards Blue’s savings.

Show Blue in the Pension Modeller

SHPS | Defined Contribution

Case studies

Amber

Red

Blue