Final Salary Pension Scheme advice please

izzyduck

Hi. I work for a company that still has a final salary pension scheme that I am a member of. The company has just announced that they will be making changes to the way that they will be handling pensions from October 1st.

The options I have are to:
1) Leave my pension as it is now;
2) Receive 15% of my salary in my paypacket to invest in their new scheme, either fully or partially;
3) To take the 15% as cash to do with it as I choose.

As I have no intention of staying with the company until I retire (I am a 30 year old female by the way), I am unsure about what my best option would be. I am completely clueless on pensions as a whole and would welcome any advice. Is it worthwhile to stay in the existing final salary scheme or should I take the cash and start a new pension scheme privately? If I opt out now, I cannot rejoin later.

Thank you!

dunstonh

Final salary schemes are generally better value than money purchase. The fact you may leave isnt a concern.

However, without knowing scheme details of both the old and new scheme we cannot give any advice. Plus advice on pensions is regulated and would be against board rules. Anything said on this board is not advice but discussion.

crankup

Does the current Final Salary Pension Scheme have a deficit?
If yes, how will the company and scheme members fill the hole?


Ours chucked some skips of money at it, plus upped our contributions by a few percent, raised our retirement age by 3 years, avergaed the final salary over final 3 years and tightened up early retirement. We agreed to that in a vote, so thats our new scheme but we keep final salary.
What's your new scheme details?

My opinion would be to do whatever you can to stay in a final salary deal. Its better than defined contribution deals etc.