New Job

wardinho

I am in a bit of a pickle. Im about to graduate and have two job offers.

Job offer 1: Allows me to stay at home and earn the same salary as option 2 ut does not offer a company pension scheme.

Job offer 2: Has same salary but requires relocation to Aberdeen for a year. There is a company pension scheme in place as well as health benefits.

My problem is that im very new to this but im concerned about my pension options. I really want to stay in my present location but I would need to arrange a pension by other means. If I do not have a company pension - as offered by company 2 - will I lose out in the long term due to the company not matching my contributions etc. as with a company scheme?
I really have no idea whee to go from here as its delaying my employment decision and I don't trust my judgement yet re: information I have seen so far.

dunstonh

Pension schemes can range in "worth" from 1% through to around 15% of your salary, if you were to put a monetary value on it. For example, if you are being offered a company pension that pays in 5% if you pay in 5%, then that is in effect 5% more gross salary. If it is a final salary scheme, this can be as much as 15% in monetary value although its harder to work out an exact value.

Do you have any information on the job 2's company pension?

wardinho

Not yet, the contracts are being sent this week but I know they match m contributions.

dunstonh

wardinho wrote:

Not yet, the contracts are being sent this week but I know they match m contributions.

Thats the bit to look out for then. If they match exactly then if you pay 10%, they will pay 10%. This in effect is a 10% pay increase. That percentage is the key value.

Chrismaths

But at such an early stage in your career, you probably ought to consider the best job for experience for the future, rather than purely focussing on wonga now. The right experience with the right company will increase your future earnings much faster.

wardinho

Thanks guys.

If I don't go for a company pension scheme like that, do I miss out in the long term? Or are there private pensions that will see me into my retirement comfortably?

I'm completely ignorant to all this.

dunstonh

wardinho wrote:

Thanks guys.

If I don't go for a company pension scheme like that, do I miss out in the long term? Or are there private pensions that will see me into my retirement comfortably?

I'm completely ignorant to all this.

A pension is just like any savings/investment plan. You get back what you pay in. If you pay enough in you will get enough out. If you dont pay enough in, you wont get enough out.