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final salary or money purchase?
imthedriver
Posts: 3 Newbie
Hi, I am a 35yrld traindriver, in a final salary pension. The problem is, it has been closed to new entrants for a number of years, and it is in defficeit, and I am one of the youngest in it. At the moment I pay £230 a month, which could rise upto another 17%. But new entrants are in a money purchase scheme and only pay in around £100 a month. Would I be better off changing pensions and use the extra money to, pay off my mortgage,or other investments? is it possible to do that? or should i just stick it out! or are there any other options open to me?
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Stick it out ,it cannot be beaten,I am on a final salary pension now ,so glad imagine if I had taken the pay less route,but I did take part of the final salary, as a lump sum ,a bird in the hand[FONT=Arial, Helvetica, sans-serif]To be happy you need to make someone happy.[/FONT]0
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Also REMEMBER NEW ENTRANTS CANNOT GET WHAT YOU HAVE ,SO IT MUST BE BAD FOR THE EMPLOYER AND GOOD FOR YOU,think about it[FONT=Arial, Helvetica, sans-serif]To be happy you need to make someone happy.[/FONT]0
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Final salary pension is massively better than the new scheme. Its because it is so much better for you and not the companies that they introduced the new scheme which is far cheaper for them (and worse for you).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Final salary it is then, thanks very much!0
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No problem,when you are 35,it seems such a long time away,and you need the money now for your family,but you also need to be warm and safe when you are older .Take careimthedriver wrote:Final salary it is then, thanks very much![FONT=Arial, Helvetica, sans-serif]To be happy you need to make someone happy.[/FONT]0 -
You are priviliged to be in the final salary scheme.
Good luck, and drive safely!0 -
If they've already stopped the final salary scheme for new employees, then probably the next step in a few years' time will be to close it altogether anyway, since closing it to new entrants alone isn't going to close the deficit they probably already have. So take advantage of it whilst you can... it probably won't last forever.0
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If they do close it, they have to make up the shortfall anyway.0
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