Civil Service - Premium or Partnership?

nish

Hi

Can anyone please explain the differences of these two schemes to me in easy to understand terms if they dont mind?

Got to choose from these two and not sure which one is best?

Any advice would be greatly appreciated.

Thanks in advance.

JOHNGT

Premium is a final salary scheme. This gives you a known benefit at retirement - your employer takes all the risks.

Partnership is a stakeholder. This is money purchase and you take all the risks - the investment risk up until retirement and the interest rate risk and the longevity risk after retirement.

In both schemes you get 3x salary life cover.

You have to pay in to the premium one but it is well worth it. The pension you get will worth several times more than what you put in.

If you are a low earner, the stakeholder may work out better as you will get a high state second pension, whereas if you are in premium then you have to give up your state second pension. However, this may become irrelevant if the government changes the state pension.

For the vast majority of people, premium is the best (and usually by a country mile) choice.

Andy_L

Are you sure you have the choice of Premium and not Nuvos? AIUI, unless you have previous Civil Service..er..service you can't join Premium as its closed to new entrants