Announcement

Collapse
No announcement yet.

Pensions

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Pensions

    Hi,
    Will anyone give me an idea of typical employee /employer pension contributions that pharmacy staff make and receive please? A friend has suggested 4% employee and 8% employer. Does this sound typical?

    Also, are the bonus payments that pharmacists receive usually considered pensionable?

    Thanks for your help in advance,
    ChopperT

  • #2
    Re: Pensions

    In industry I was given choice, 2% + 4%, 4% + 8% or 6% + 12%. I opted for latter as was aged 40 on joining and no previous pension.
    johnep

    Comment


    • #3
      Re: Pensions

      4 + 8 appears a perfectly good offer, especially in the current financial climate. Obviously the chosen scheme would be key, with regards to both parties. Both contribution, and fund-related charges can currently be knocked down to a minimum with the potential provider, it would appear.

      In my position, aged 47 and self-employed, I am allowed a tax-exempt contribution of 25% of my net relevant earnings, and continue to contribute this, despite the global position.

      I think young pharmacists would gladly accept a 4 + 8 split.

      Regarding bonuses, it is dependent on how the bonus is paid as to whether it attracts an employers pension contribution. That's a matter to discuss with your accountants, as there are likely to be attendant tax implications.

      Fleeg.
      Last edited by Fleegle; 26, November 2008, 08:21 PM.
      Don't Stop Believing

      http://youtube.com/watch?v=rnT7nYbCSvM

      Comment


      • #4
        Re: Pensions

        Actually I think you will find that many companies offer stakeholder pensions where the employer makes no contribution at all. Some offer 3+3 that I am aware of.
        http://uk.youtube.com/watch?v=Hmbyj0XFUhA

        Comment


        • #5
          Re: Pensions

          My fund is shrinking so fast that I'm terrified to put anything more in!

          Comment


          • #6
            Re: Pensions

            Unfortunately, it's usually pay the pension, or pay the taxman. Assuming things will improve, your continuing contribution will have bought you shares at a very low price......

            PS..Nice one Tony..there goes the future pension of ChopperT's prospective employee pharmacist....
            Don't Stop Believing

            http://youtube.com/watch?v=rnT7nYbCSvM

            Comment


            • #7
              Re: Pensions

              Originally posted by Fleegle View Post
              there goes the future pension of ChopperT's prospective employee pharmacist....
              how true, that's what i had in mind when reading the post
              [COLOR=Olive]xxxx They tried to break my back, but i survived. whatever doesn't kill you, will only makes you stronger xxxx
              [/COLOR]

              Comment


              • #8
                Re: Pensions

                Are we in some sort of collusion to give false information to people who ask honest questions? Chopper T will agree a package with his new pharmacist who is at liberty to agree or walk.

                My advice to Chopper T would be to abandon hope of making a profit out of a 100 hour pharmacy and do a deal with his local pharmacy if possible.

                I am not apologising. I will answer questions as honestly as I can and if the concensus of opinion here is that you no longer wish me to contribute then say so and I will stop doing so.
                http://uk.youtube.com/watch?v=Hmbyj0XFUhA

                Comment


                • #9
                  Re: Pensions

                  Originally posted by Tony Schofield View Post

                  I am not apologising. I will answer questions as honestly as I can and if the concensus of opinion here is that you no longer wish me to contribute then say so and I will stop doing so.
                  This place would be much less interesting without your posts!!!

                  Comment


                  • #10
                    Re: Pensions

                    I was talking to a retired pharmacist this moning about pensions as it happens and he does a couple of days a week for us and has been with us for most of his career and he was saying that we put in 6% and they put in 16%.

                    I havent got a pension at all but come the new year I will.

                    Comment


                    • #11
                      Re: Pensions

                      A 16% employer contribution depends on how the deal was struck in the first place. It is beneficial for an employer to pay this type of contribution, as it usually gives rise to enhanced tax and, possibly more importantly, employer's National Insurance reliefs based on the employee's basic salary.

                      I'm pretty sure your now-retired friend negotiated this deal based on a reduced salary, (or he started it a long, long time ago when employers were more generous with their contributions). Reducing salary with a view to investment for retirement is not a bad thing, but is always age and means-dependent. e.g. his mortgage was minimal.

                      Pension contributions are age-dependent for tax purposes i.e. the older you are, the more is allowable against tax, on a rising percentage scale. 22% is on the high side, as it indicates to me a start-up age of probably, middle-forties.

                      Don't forget, however, that early in your career you will have many other necessary financial outlays. Gauge your pension contribution accordingly...you can always increase it later, when you have more available cash.
                      Last edited by Fleegle; 1, December 2008, 08:33 PM.
                      Don't Stop Believing

                      http://youtube.com/watch?v=rnT7nYbCSvM

                      Comment

                      Working...
                      X