Would you leave a job that includes a final salary pension

Walter Sobchak

Walter Sobchak

Walter Sobchak

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Joined
22 Jan 2006
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698
For a job that doesn't include a final salary pension for only a 5k increase?

Eg £25k pa which include 1/60th final salary pension scheme v £30k pa job with career average pension scheme?
 
Depends how much more you expect your salary to rise and how close to retirement you are.
 
Yup if the new job offered better prospects and I still had a fair few years left before thinking of retiring.
 
The key factor is how long you have until retirement really. Without that it's impossible to give an informed answer. Also, what you are currently earning (i.e. in percentage terms how much of an increase is the 5k?).
 
Pensions are deferred salary.

I don't think I'd give up a job with a final salary pension.
 
I would be do back flips if I could get final salary pension :p

I'm on a pretty good scheme(these days) where employer equals all my contributions up to 10%. Probably still won't be worth **** when I retire at 90 (which it will probably be fit us lot) luckily Missus is a teacher so she has a decent enough pension.

Pensions aren't worth jack these days which is making the housing problem as everyone buys a second house (or two) instead pushing up housing prices, something I intend to do too :p
 
I would never base my job choice on what kind of pension the company offered. My former company scrapped their final salary pension scheme for all employees, including those who had been there for 30+ years.
 
Monserrat said:
This.

Final-salary pensions don't really exist any more, so hang onto the one that you have.
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Tell that to those who were told their DB scheme had magically become DC.

Given how long OP has to retire, I'd put money on his current scheme not being final salary for him by the time he retires. With 20+ years left they have no obligation to keep it as it is.

There are a particularly angry set of water company employees who can vouch for this.
 
I imagine at 25k a year with 20 years until retirment, you could probably be earning a lot more (depending on what you actually do) and thus you probably shouldn't worry about it.
 
Duff-Man said:
The key factor is how long you have until retirement really. Without that it's impossible to give an informed answer. Also, what you are currently earning (i.e. in percentage terms how much of an increase is the 5k?).
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This too little info.

For example my gf has 4% deducted from her salary as gross salary sacriface and the company adds 12% into her pension fund so basically 16% of her salary which is very generous since she loses only about 3% of her take home pay.

In theory this will give her a very good pension and not far behind final salary scheme (lesser ones)

On the other hand her Mother is in a final salary scheme and she gets 49/80ths of her final years salary which will mean a very generous pension of around £40k per annum plus an initial lump sum of £120k.

However I know many other people with less generous final salary schemes.

Assuming the final salary scheme still exists when you get there, it's easy to work out what that is worth. Then easier enough to figure out hoiw much of your extra £5000 per annum you would need to put into a pension scheme to match the same final salary payment.

You might find that it takes all of the £5,000 or even more depending how generous your final salary schem is.

In my gf's mother's case I am nopt sure you could have paid enough of your salary into a pension to return around 2/3rds of your salary in a private pension.
 
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I'm on final salary but you can bet it won't be that when i retire in 40+ years time, been paying into it for 6 years though, sometimes i think it would be better to pack it in and buy a house with it.
 
Greebo said:
This too little info.

For example my gf has 4% deducted from her salary as gross salary sacriface and the company adds 12% into her pension fund so basically 16% of her salary which is very generous since she loses only about 3% of her take home pay.

In theory this will give her a very good pension and not far behind final salary scheme (lesser ones)

On the other hand her Mother is in a final salary scheme and she gets 49/80ths of her final years salary which will mean a very generous pension of around £40k per annum plus an initial lump sum of £120k.

However I know many other people with less generous final salary schemes.

Assuming the final salary scheme still exists when you get there, it's easy to work out what that is worth. Then easier enough to figure out hoiw much of your extra £5000 per annum you would need to put into a pension scheme to match the same final salary payment.

You might find that it takes all of the £5,000 or even more depending how generous your final salary schem is.

In my gf's mother's case I am nopt sure you could have paid enough of your salary into a pension to return around 2/3rds of your salary in a private pension.
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I think it will take a lot more to get the 2/3rds of my salary until I die and a decent sized lump sum. My company currently pays 12% to my 6% in to the pension pot, but like a few have said how likely will it still be around in 20 years.

But I suppose they will only be able to stop the current scheme and not take away the 18 years I've already paid in.
 
Theophany said:
Tell that to those who were told their DB scheme had magically become DC.

Given how long OP has to retire, I'd put money on his current scheme not being final salary for him by the time he retires. With 20+ years left they have no obligation to keep it as it is.

There are a particularly angry set of water company employees who can vouch for this.
Click to expand...

Which water company are you referring to?
 
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