Jump to content
House Price Crash Forum
Sign in to follow this  
ravedave

Final Salary Pension

Recommended Posts

Hi,

I'm a 32yo working in engineering and I've got a final salary pension scheme through work which I've contributed into for just over 10 years now.

I've just a got one basic question - just how big a deal is it to have a final salary pension? I have been looking at other jobs and none of them offer this type of scheme. Yes, i know that they are becoming extremely rare now so hence my question.

Just how much of a difference does it make and should you assume that in x years it will have to be changed to something else(scheme is in deficit, but there is a plan in place to reverse it...).

Are pensions worthwhile any more - I know some retired people who wonder where all their contributions went and consider that it might have been better to stick it into a savings account instead.

Thanks.

Share this post


Link to post
Share on other sites

Shock horror a non-public sector final salary pension scheme!

Seriously though, depends on your view, if you believe we will avoid financial armaggeddon then stick with it, it will be a rare and great deal.

Be careful though and remember they can change the scheme part way through.

Share this post


Link to post
Share on other sites

If you're 32, you have a long time to go before your pension. A long time to hang in to a job you no longer want to be in. Go ahead and move, freeze the pension entitlement (ten years not to be sneezed at) or take financial advice on moving it, and see what your new employer offers.

Share this post


Link to post
Share on other sites

If you're 32, you have a long time to go before your pension. A long time to hang in to a job you no longer want to be in. Go ahead and move, freeze the pension entitlement (ten years not to be sneezed at) or take financial advice on moving it, and see what your new employer offers.

+1

It's a good benefit to have, you'd probably be surprised at the "cash equivalent value" it has accrued (don't get excited, you can't access that cash, but it will have a value which might well be a six figure sum).

As Porca Miseria says it's not a reason to stay in a job you don't want to be in though. It's also true to say that while the value of what you've built up can't be taken away and is protected to some degree, the rules can certainly change and many employers have closed their final salary schemes to existing members in recent years. It's likely that more will do so, replacing them with something else.

Pensions are worthwhile, especially if employers are paying into them for you or with you.

One final thing. It's rarely a good idea to transfer benefits away from a final salary pension scheme. Treat any advice to the contrary with caution.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.