Pension Scheme

I had heard that our pension scheme (very similar to 401Ks in the U.S.) at work was good, but hadn’t really considered joining since we’re here on a short-term basis. However, I had my meeting with the financial advisor today and was amazed at how good the plan is, so I signed up. I contribute 6% tax-free and the college matches 14%, for a total contribution each month of 20%! So in other words, £54 is taken out of my paycheck each month and then £234 goes into my pension.

Also, the government pension (what we would call social security) is a 2-part system here. One part has to remain as a government pension, however the other part can be designated into an employer pension. That amount will be £844 for my first year.

So between work contributions and the government contribution, the value of my pension should be quite good by the time I transfer it to my U.S. employer’s 401K. I asked about how difficult that will be to do and he said it just involves a phone call on my end, but lots of paperwork for him :)