Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
RobertT wrote:I'm not sure whether they'll give you that sort of advice or not, but there is an easy way of working out the maximum to stay within PSE limits:
So for a full timer, that would look something like:
11.62 – 8.21 = 3.41 x 38 = 129.58
That's the gross amount, so your take home pay would only reduce by about £88. Although personally I wouldn't go above around £120(gross) / £81(net) to be on the safe side.
RobertT,
Just wanting to check with you that this advice of remaining within PSE linits relates to the entire pension payment that I make? As in 6% from salary as normal maximum contribution and then the balance made up to the level from AVCs?
I have no personal experience of paying the maximum into AVC's, but there are people on these forums that currently pay in the region of £120(gross) / £82(net) per week in AVC's on top of their basic contribution.
I'm sure someone will come along and confirm.
But bear in mind the comment from mrcurve about the minimum wage increasing in April. Assuming we don't get a pay rise, and using the same maths as above, that will reduce the maximum amount to about £110(gross) / £75(net).
heapsy wrote:I'm currently paying £120.88, just short of the maximum permitted. This gives me an hourly rate of £8.43. About 22p above the minimum wage rate.
Heapsy, is that £120.88 all towards your AVC or are you still contributing to your regular pension scheme so is a total to both?
heapsy wrote:I'm currently paying £120.88, just short of the maximum permitted. This gives me an hourly rate of £8.43. About 22p above the minimum wage rate.
Heapsy, is that £120.88 all towards your AVC or are you still contributing to your regular pension scheme so is a total to both?
