Employer Pensions

Your employer pension is set up by your employer and usually, both you and your employer contribute to the pension. Employer pensions have multiple benefits, not just the fact you are saving for your future, but also tax reliefs and government top ups.

At SSA we believe your employer pension should form an important part of your wider financial plan. When you come to us for advice, we make sure you understand how your employer pension will contribute to your financial journey and ultimately your retirement plan.

There are two types of employer pensions; one is called defined benefit and the other is defined contribution.

Defined Contribution: The minimum total that an employee and employer must contribute to a defined contribution employer pension is 8% of the employee’s salary. This is usually 5% on your part, if paid via salary sacrifice, and 3% from your employer. These payments are normally made during your employer’s salary run.

Defined Benefit: A defined benefit scheme guarantees a certain level of pension benefit when you reach retirement age. How much you will receive is based on the number of years of service and salary levels. Your contribution can vary in terms of percentage paid, but is usually a higher percentage than that of a defined contribution scheme.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and charges which cannot be foreseen.