Hi , how do I stop my pension contributions?
Tried the HR line but has 40 min wait and didn’t have an option of stopping pension contributions?
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Stop contributions
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RobertT
- EX ROYAL MAIL
- Posts: 6644
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: Stop contributions
It's obviously your choice based on your circumstances, but I would take time to think about your choices if I was you!
You gain tax relief and the benefit of salary sacrifice(PSE) on your pension contributions, so each £1 gross(the amount on your payslip) is only actually costing you 66.75p.
That's how much more you'd have in your take home pay if you opted out!
Plus you'd be giving away RM's contributions too.
You don't say which scheme you're in, but they pay 13.6% of pensionable pay into the DBCBS and a max of 10% pensionable pay into the RMDCP.
That adds up to a lot of 'free money' to be giving away, and has the potential to affect your retirement plans in the future.
For example: my gross payment into the DBCBS(section C) is £25.23 per week. But factoring in tax relief and PSE, the net amount is only £16.84.
RM are paying in £57.18.
So in total there's over £82 per week going in and it's costing me just under £17.
You gain tax relief and the benefit of salary sacrifice(PSE) on your pension contributions, so each £1 gross(the amount on your payslip) is only actually costing you 66.75p.
That's how much more you'd have in your take home pay if you opted out!
Plus you'd be giving away RM's contributions too.
You don't say which scheme you're in, but they pay 13.6% of pensionable pay into the DBCBS and a max of 10% pensionable pay into the RMDCP.
That adds up to a lot of 'free money' to be giving away, and has the potential to affect your retirement plans in the future.
For example: my gross payment into the DBCBS(section C) is £25.23 per week. But factoring in tax relief and PSE, the net amount is only £16.84.
RM are paying in £57.18.
So in total there's over £82 per week going in and it's costing me just under £17.
Links to all RM pension related websites are here
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derricksmyth
- Posts: 353
- Joined: 13 Sep 2012, 17:58
- Gender: Male
Re: Stop contributions
Wise advice from Robert, think carefully before doing this!
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scoobydo79
- Posts: 2031
- Joined: 15 May 2011, 19:04
- Gender: Male
Re: Stop contributions
Sorry but why would anyone want to stop them? 