How big should my pension pot be ?

marklv

Baz wrote: »

I am an accountant and my wife works for the NHS as a radiographer. Granted I'm not a partner or anything flash like that, but then again I'm not a trainee either, fully qualified. She comes home with more than I do.

Firstly, this is not surprising if you work for a smallish firm with a limited clientele, but it would be different if you worked for KPMG or PWC etc. If the NHS was private it would be a massive 'blue chip'.

Secondly, again it's comparing apples with oranges as your wife is not an accountant and you are not a radiographer.

Perfect_Choice

Bonuses are not included within permitted percentage of salary pension contribution as well so when comparing models just remember it is common to have a low base salary (contributing to your pension) and then a bonus which is not gauranteed and is impacting on staff particularly badly in the current economic situation. Its a far more riskier model for steady income and pension contributions especially if you are in Sales. It is for this reason why I have by private company pension scheme with its base salary contribution, plus a SIPP to contribute and top up when I have the chance, or to cut back on contributions if I have to.

Aegis

marklv wrote: »

Firstly, this is not surprising if you work for a smallish firm with a limited clientele, but it would be different if you worked for KPMG or PWC etc. If the NHS was private it would be a massive 'blue chip'.

Secondly, again it's comparing apples with oranges as your wife is not an accountant and you are not a radiographer.

Ok, let's compare lawyers...

From this link:

In terms of salary, the public sector is also looking pretty good, especially for junior to mid-level lawyers. The public sector terms and conditions are by and large more !competitive that the private sector’s. At the junior level, for quite some time now a lawyer has been ahead in local government compared with a private sector counterpart (although it is probably starting to equal out now). At the mid-level, apart from the major firms, a lawyer is definitely better off in the public sector.

However, at the senior level the prospect of gaining equity in private law firms puts lawyers in front salary-wise, as there is an absolute ceiling they can reach in the public sector (although this can rise to six-figure levels).

So basically it's saying that from the junior right the way through to the boundary of the senior levels, the pay, working hours, staff benefits, etc are all better in the public sector.

marklv

I accept that public sector professional salaries have improved in recent years, however the ceilings are lower than in the private sector, as your article correctly points out. And the opportunities for promotion are much better in the private sector, as firms seek to expand their business activities, while in the public sector it's often a question of filling 'dead men's shoes'.

Aegis

marklv wrote: »

I accept that public sector professional salaries have improved in recent years, however the ceilings are lower than in the private sector, as your article correctly points out. And the opportunities for promotion are much better in the private sector, as firms seek to expand their business activities, while in the public sector it's often a question of filling 'dead men's shoes'.

We weren't just talking about the ceilings though. Not every lawyer is going to go right to the top of their industry very quickly. Most are probably going to stay in the middle rather than becoming a full partner of their firms, so comparing only the top positions and claiming a disparity doesn't make an awful lot of sense. Comparisons of the junior and mid-level positions appear to be very favourable for those in the public sector, with higher pay, greater flexibility and better working hours.

marklv

"Comparisons of the junior and mid-level positions appear to be very favourable for those in the public sector, with higher pay, greater flexibility and better working hours........"

I'm not denying this, but you'll find that most 'Oxbridge First' types will likely still go for the Clifford Chances and Freshfields of this world as opposed to the CPS. I accept that the public sector offers greater flexibility etc, but the fact remains that promotion prospects are invariably more limited - not just to the very top, but even to middle managerial grades. The private sector has a more fluid workforce with plenty of contract staff and relatively frequent staff turnover, while in the public sector you often find 50+ types who have been there since time immemorial and who will not leave until retirement.
Many young professionals still prefer to work in the private sector for this reason.

bendix

LOL . . . you're struggling here marklv. You ask about differentials for lawyers and accountants (two professions I'm sure you carefully chose because you expected the right stats to support your argument) and still it didnt work for you.

What next?

marklv

I'm tired of these pointless arguments that keep going round in circles. You can easily come up with reams of data and statistics to prove a falsehood - civil servants do that all the time on behalf of the government, to justify policy decisions.

The fact is that if you deny public sector workers the basic benefit of a salary related pension (note that I avoid using the words 'final salary') then you will merely anger millions of workers, cause strikes and generate bitterness that will last decades, as well as damage essential public services. It is just not worth it, despite what the Daily Muck or Torygraph say. I suggest we agree to disagree and put the argument to rest.

bendix

Yes, because, let's face it, public sector workers are special and deserve special treatment, not given to those in the private sector. You're protected, and precious, and incapable of looking after yourselves in the same way private sector workers do (who, incidentally, I don't recall going on strike when their final salary pension rights have been taken away).

marklv

bendix wrote: »

Yes, because, let's face it, public sector workers are special and deserve special treatment, not given to those in the private sector. You're protected, and precious, and incapable of looking after yourselves in the same way private sector workers do (who, incidentally, I don't recall going on strike when their final salary pension rights have been taken away).

Stop harping on like a windbag. You sound like an old LP record stuck in a groove and repeating the same part of the song over and over again. If you wish to destroy our education and health services that's up to you but people can decide for themselves.