Pension Contributions

[BeTheChange]

So my current employer appears to have quite a generous pension scheme.

They will double whatever contribution you make to your pension plan.

For example I currently contribute the minimum of 3% of salary and the employer contributes an additional 6% of salary.

E.g If I paid in $100 a month my employer would pay in $200 for a total contribution of $300. I spoke to my old man and he said this is ridiculously generous. Is he right?

It seems like it is basically them tripling my money. If this is the case should I be maxing it out as realistically I'm not going to be making an investments that could achieve that kind of return?

Thoughts?

 

[Billtx49]

Investigate it thoroughly for long term safety first. If it looks good, then max out on your dollar input. You will thank yourself at retirement age. Your fathers asessment is correct, but your employer is below the average based on your figures.
In the private sector, employers average 8% of paycheck with none from the employee. Depending on what you contribute, you could be way above average if there is no limit on your contribution percentage.

 

[Billtx49]

Public sector average is 5% employee matched with 7% employer. You would be above that average also by upping your contribution.