pension with employer

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
2 replies 1.3K views
rygonrygon Forumite
748 Posts
im just wondering if i can get some non-biased advise.
our company has just been taken over by a larger company. i was in the final salery scheme but as they dont have it at this new company (well they do but closed for new employees last year) us non protected members now have to join a different pension scheme.
anyway im only 21 and i was in the fs since 18 so it doesnt matter much to me.
This new scheme seems you pay say 3.0% of your salary a year (say it comes out to £187.50) then an annual revaluation is put on it (say 2% or £3.75) this gives me a grand total of £191.25. Now they say that if i retire with just ne year pension i get that total per annum.

i just cant see how if ive paid £191 htye give me that every year..is this too good to be true????
Smile and be happy, things can usually get worse!

Replies

  • dunstonhdunstonh Forumite
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    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    Seems pretty awful to me.  Obviously the new company doesnt seem to think much of its employees.

    Can you just clarify the last bit of your post with regards to the amounts.  It doesnt read too clearly at present.
    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.
  • PalPal Forumite
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    I don't understand the figures either. If 3% of your salary is £187.50 a year you are earning £6250 a year, below minimum wage unless you are part time.

    The pension accrual figures are not clear either. Can you check the documents again and post a few more details? If the booklet is available online provide a link.
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