Calculate the cost to you
Use the pension modeller to find out what being a member might cost and how much you can afford to contribute.
It might cost less than you think...
Your contributions to your pension also receive tax relief. This means it might cost less than you think. Add this to the extra that your employer pays and you will be getting a whole lot of savings for only a small cost.
Let's look at an example in terms of a monthly payslip for a member earning £24,000 a year and contributing 3%:
BEFORE PENSION PAYMENTS:
| Step 1. Monthly salary |
£2,000 |
| Step 2. Tax |
£292 |
| Step 3. Salary after tax |
£1,708 |
INCLUDING PENSION PAYMENTS:
| Step 1. Monthly salary |
£2,000 |
| Step 2. Pension contributions |
£60 |
| Step 3. Tax |
£280 |
| Step 4. Salary after tax and pension |
£1,660 |
You can see by comparing these payslips that the £60 pension contribution has only cost the member £48.