Public Sector Pension - Opt Out?

dasherman

Foxtbh wrote: »

Imagine I paid into this pension for 18 months and then left to work in a private organisation for the next 40 years. After this 40 years, what benefit to me would that initial 18 months have been in this scheme?

In money terms it probably won't be a huge amount but as it's a public sector pension this money will be going up with inflation every year for 40 years,so it might just make the difference between you being able to retire when you want to and having to work longer.

Saving for a decent retirement is a long road and you should think of this pension as just taking the first step!

dunstonh

Its expected that people move around nowadays. Thats why pensions can move with you. Even if its best left where it is, when you retire it will provide an income relative to your period of service. Hopefully, wherever you work after that will provide a pension relative to that period. Its the combined total that matters.

One thing is for sure, if your net cost is around £90pm (or even £140), you will get back far more than it cost you as the level of benefits on the scheme far outweigh the cost.

Oldernotwiser

You may not need it at the moment but that probably also covers a large amount for death in service, which could be useful in the future.

Andy_L

dunstonh wrote: »

Its expected that people move around nowadays. Thats why pensions can move with you.

As its the new career-average Civil Service scheme rather than final-salary early leavers no longer loose out compared to "grizzled veterans" anyway

DavidLaGuardia

Hey Fox

Its all be said

Stay even as little as two years and benefit verus cost of the pension are worth it.
Leave before and get the money back anyway.

I am envoud of those in such schemes and, to be blunt, only someone who don't know the details or was A COMPLETE AND UTTER NUMPTY (avoiding better phrases that would be impolite on a forum ) would not join .