Been offered a new job,,mian difference being the pension deal.

my current employer pays approx £200 per month into a pension for me, therefore costs me nothing.

new job i will have to put in approx £2000 per year out of own pocket, but its a final salary pension.

other than that the money side of things is about the same.

is a final salary pension worth it??.

Ray

quote:

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Originally posted by rayward


is a final salary pension worth it??.

Ray

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Basically yes, much better deal.

Its really the difference between a gamble and a guranteed outcome.

while at the moment your employers contributions are fixed. with a FS Scheme your employer gurantees you will retire with a set pension.

with your current scheme if the stock market drops 6 months before you're due to retire, you'll probably be rethinking your retirement!!

However, I'm not sure I'd change jobs just becuase of the Pension Scheme.

Edit: While I'm not an Pensions Advisor I spent 4 years running acturial calculations of personal pensions compared with Money Purchase and Final Salary schemes.

[Edited on 1/8/06 by scottc]

Yep, final salary pension is deemed as the best type of pension that you can get as the scheme rules will set out the accrual rate of the final pension for each year of service that you complete.

They're are know as Defined Benefit schemes as you know the benefit that you will get at retirement regardless of the fund value. You will have to pay in X, but the employer will then have to fund the scheme to meet the benefits at retirement. This will be much greater than the £200 that your current employer is paying.

The only thing that needs consideration is the current situation of the scheme, is it underfunded, are they thinking of winding it up (as a lot of Final Salary schemes are) etc.

In honesty, if it was me I would join it.

I am in a final salary pension and they are the best pension to have

And the only good thing about working for the NHS at the moment

thanks for the info,

the job looks to be better than the one i have at the moment, its 10hrs per week less hours too.

Ray

Go for it - FSP are worth their weight in gold. Fewer and fewer companies are doing them now for obvious reasons...

Steve

Just be aware, I'm in a final salary scheme. A couple of years ago they put the contributions up from 5% to 7% and made a reduction in payment of 4% for every year you retire before 65, oh and closed the scheme to new members, I'm just wondering who'll be paying for me when I retire.

Andy

I joined a company with a final salary pension scheme. One year later they canned it