Could you contribute more?
09 January 2025
When you join the DC Section, you automatically pay the default 1% member contribution. The Company makes pension contributions, known as Employer Credits, of 8% of your Pensionable Pay on your behalf.
However, if you contribute more, the Company will also pay more. For every 1% more that you contribute, the Company will pay 1% additional Matching Employer Credits up to a maximum of 5% of your Pensionable Pay. That’s money you wouldn’t otherwise get, so it might make sense to increase your contributions if you can.
The table below shows the total contribution that could be paid into your Personal Account:
| Your contributions | Employer Credits | Matching Employer credits | Total paid into your Personal Account |
|---|---|---|---|
| 6% (or above) | 8% | 5% | 19% |
| 5% | 8% | 5% | 18% |
| 4% | 8% | 4% | 16% |
| 3% | 8% | 3% | 14% |
| 2% | 8% | 2% | 12% |
| 1% | 8% | 1% | 10% |
| 0% | 8% | 0% | 8% |
It’s also worth bearing in mind that the sooner you start saving, the more time your money will have to grow. Increasing your contributions early in your career can be particularly valuable if it’s something you’re able to do.
There are more resources on our website to help you think through whether you can or should pay in a little more:
- The Contribution Calculator lets you see what effect a change to your contributions would have on your take-home pay.
- The Retirement Living Standards Modeller helps you to see what sort of income you might need in retirement to provide a certain standard of living.
- Your Personal Account enables you to see how much your savings in the DC Section are currently worth.