Hello Signallers.
I hopefully will be signalling trains. Got my medical this Friday and references are being checked. But I'm a little confused with the choice of pensions and was wondering if people could advise or explain in layman terms my true options.
The way I understand is.
1)If I don't pick then NR will place me in to one automatically and pay 3% contributions (I can also choose to pay up to 7%??)
2)the Care scheme seems like a finally salary pension scheme
3)you take a reduced salary in order to pay your contributions but this works out better as you earn more as you pay less tax?
4)The SMART system sees you pay less NI contributions because your paying into your own scheme?
Having read the paperwork they sent several times, I'm still a little confused and the assumptions above may be completely wrong as I have misunderstood the information. The pension helpline have not really helped. Basically I'm looking at what one is right for me. My concern is that my contract is a FTC (I'm hoping it will extend - or I stay in with the company and go else where)
Any suggestions or explanations would be great. At the moment I see the first option similar to a stake holder pension where I would buy an annuity at the end, so I'm rather attracted to the CARE scheme but the SMART system and lower gross pay to pay contributions confuses me. I'm sure its not complexed but don't want to opt for the wrong choice.
Thanks
I hopefully will be signalling trains. Got my medical this Friday and references are being checked. But I'm a little confused with the choice of pensions and was wondering if people could advise or explain in layman terms my true options.
The way I understand is.
1)If I don't pick then NR will place me in to one automatically and pay 3% contributions (I can also choose to pay up to 7%??)
2)the Care scheme seems like a finally salary pension scheme
3)you take a reduced salary in order to pay your contributions but this works out better as you earn more as you pay less tax?
4)The SMART system sees you pay less NI contributions because your paying into your own scheme?
Having read the paperwork they sent several times, I'm still a little confused and the assumptions above may be completely wrong as I have misunderstood the information. The pension helpline have not really helped. Basically I'm looking at what one is right for me. My concern is that my contract is a FTC (I'm hoping it will extend - or I stay in with the company and go else where)
Any suggestions or explanations would be great. At the moment I see the first option similar to a stake holder pension where I would buy an annuity at the end, so I'm rather attracted to the CARE scheme but the SMART system and lower gross pay to pay contributions confuses me. I'm sure its not complexed but don't want to opt for the wrong choice.
Thanks
