Best pay package - public or private

dolcelatte

I'm in a dilemma as I have been offered 2 jobs. 1 is private sector and pays 20% more than the other which is NHS. Given the generous NHS pension etc. would it be better to take this than the one that pays more per annum?

smk77

dolcelatte wrote: »

I'm in a dilemma as I have been offered 2 jobs. 1 is private sector and pays 20% more than the other which is NHS. Given the generous NHS pension etc. would it be better to take this than the one that pays more per annum?

perhaps the employment forum would be a better place for this?

I'd go with the private sector job. The more money you have now the more you'll be able to afford now...The more you'll have to invest in property which over time is more than likely to make up the difference in a "generous" pension..or, the quicker you'll be able to pay a mortgage off meaning you'll be mortgage free! Whilst it's wise to consider the future you need to take even more consideration about now.

andrewnottingham

Surely with the private sector job paying 20% more than the public one you could make up the pension contributions?

I would also think that in the private sector the scope for salary increases would be better.

Good luck which ever one you choose!

davidjwest

I've had similar jobs in both private and public sector and I would go for the private sector one myself. When I was in the public sector, everyone was trying to get a job in the private sector but the opposite isn't true.

You need to maybe consider job security as well - if it's a large private sector company then you are probably going to be OK but do some research to see how the future is looking if you can.

dolcelatte

andrewnottingham wrote: »

Surely with the private sector job paying 20% more than the public one you could make up the pension contributions?

I would also think that in the private sector the scope for salary increases would be better.

Good luck which ever one you choose!

I read somewhere that you would have to pay 25% of your salary to a private pension to get the same benefits that you do in the NHS but I don't know if that is true or not.

dazza.mk

Bear the current review in mind before you make any decisions based on a public final salary scheme

http://www.telegraph.co.uk/finance/financetopics/budget/7842438/Millions-in-the-public-sector-to-pay-more-for-pension.html

kurgon

Also check any increments that are included as often the private healthcare companies do not give extra pay for evenings/nights/weekends if they are applicble.

smk77

dolcelatte wrote: »

I read somewhere that you would have to pay 25% of your salary to a private pension to get the same benefits that you do in the NHS but I don't know if that is true or not.

I've used a calculator on the NHS Pensions scheme that tells me that a 25 yr old retiring after 40 years service in the NHS earning £20k a year a pension would be £10k plus £30k lump sum.

Using a calculator I have at work (clearly this like all private pensions are estimates!) a similar projected retirement amount (excluding the lump sum) would require £226 a month in contributions which would be 13.56% of a £20k salary.

So, not sure where the 25% has come from! I read once that to get an estimate of how much you needed to pay into a private pension as a percentage (I guess it was to get 50% pension!) was to half your age. So, a 25 yr old would need to contribute 12.5% for 40 years to retire at 65. A 30yr old would need to contribute 15%...

Once again, if pension contributions and advice is required then you are the wrong part of MSE. Try http://forums.moneysavingexpert.com/forumdisplay.php?f=19

shortchanged_2

Problem is private pensions can be very hit and miss. Many people have been left seriously out of pocket relying on private pensions.

COOLTRIKERCHICK

only you can make the decision on which job to go for...based on your life style, traveling costs hours etc.

but without knowing all this.. I personally would go for the private sector with the 20% more wages.

To be honest the way things are going, no one can say what will happen to private pensions in the future..

I was watching a programme a few months back...and they had 2 members of staff paying into a private pension. one lady had paid in for x amount of years.... and would get x amount of money.... then another lady hadnt paid a penny into the companies private pension... and the person who was paying into the private pension.. would only be a few pounds better off than the other person...

which she was very disappointed with.

personally i would use the extra money and save for my pension..

Mk14:37

You shouldn't believe everything you read in the newspapers about public sector pensions. Yes, some people of several years service have them, but take it from a civil servant of two years - new starters don't get final salary pensions.