best way to put money into a Pension

[KAZ]

I am starting a new job, the company have offered to pay a proportion of my salary as a pension (ie they will pay this amount directly into my pension plan) is this the best way of doing this? or is it better to be paid the amount with my salary and then pay the money into my pension myself? I know that one way must be better with regards to tax but I don't know which??

Thanks.

[WendyS]

If you company pension scheme is a Final Salary one, grab whatever they offer with both hands as these plans are becoming as rare as hens' teeth.

Not knowing what type of scheme it is, I would have thought that it would be less complicated just to have the money deducted from your salary into the company scheme where the tax benefit will automatically accrue. If you're talking of a personal pension which has nothing to do with the company and is entirely administered by yourself, you may not get the benefit of a company contribution, and would need to get some independent advice.

[Hammer]

If they pay it straight in before you see it (called something like a voluntary salary sacrifice), then Mr Taxman doesn't include it as part of your earnings, so you don't pay income tax or National Insurance on it.

If they pay it to you and then you pay it into your pension yourself, you can claim back the income tax, but not the national insurance.

[jason1980]

i would keep all your income and get a personal pension plan from a bank or building society where you can choose your monthly payments by direct debit- but that's me...