Free money from your boss

Lesson 5 of 13 in our free Pensions guide: a 5-minute money game with the key points below.

This lesson is in the full version.

Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Pensions is free for everyone.

Questions you'll answer

Priya earns £20,000. Qualifying earnings are pay between £6,240 and £50,270. Her employer pays the 3% minimum. How much do they add per year?

Priya's employer says: 'We pay 3%, but if you pay 6% we'll match it with 6%.' She currently pays 5%. What does upping to 6% mean?

Fact: “Some employers pay more than the 3% minimum.” — Check your contract or HR — some are much more generous.
Myth: “Employer pension contributions count as part of your take-home pay.” — They're on top of your pay, going straight into your pension pot.
Fact: “Salary sacrifice is an arrangement where you swap some salary for employer pension contributions.” — It can save on National Insurance — but can affect things based on salary, like some mortgage applications. Check the details.