Pension advice sought

Monkeymia

I'm in the Firefighters Pension Scheme (FPS), which is a final salary scheme and currently pay 11% of my salary with a retirement age of 55 (I have been planning to continue contributing and retire at 60 tho', which will give me the full 30 years). I keep getting mail suggesting I transfer to the New Firefighters Pension Scheme (NFPS) which collects 8.5% of my wage and retirement age is 60 (basically I think this is a much cheaper option for the Fire Service hence the suggestions to change).

EDIT:
Further Info - As a member of the FPS you pay a contribution of 11% of pensionable pay. Your fire and rescue authority pay an employer's contribution of about 26.5% including additional charges for ill-health awards. At the retirement age of 55 the FPS goes into a state of immediate payment, to work to 60 I would have to transfer before then into the NFPS.

I've been reading online a number of articles that state I need to be paying in more than this. I'm 36 and an article on the Motley Fool (hope it's okay to mention them here) stated that you need to half your age (so for me 18) and thats the percentage you need to be paying into pensions.

I should also get a state pension, but doubt that will be worth that much.

My question then is where should I be putting the remaining 7% for best gains?

EdInvestor

The Fool article isn't relevant - you have a final salary scheme so effectively the Government is already paying the extra for you.

If you want to invest more, max out your annual stocks and shares ISA.

dunstonh

I should also get a state pension, but doubt that will be worth that much.

It probably wont be. You will be on for around £4381 a year if you had maximum qualification for the basic state pension and didnt qualify for SERPS/S2P.

Download form BR19 from the DSS site and send it off to get a state pension forecast.

Monkeymia

EdInvestor wrote:

The Fool article isn't relevant - you have a final salary scheme so effectively the Government is already paying the extra for you.

If you want to invest more, max out your annual stocks and shares ISA.

I don't have any isa's at present but a current account mortgage.
Thanks for info tho'

Monkeymia

dunstonh wrote:

It probably wont be. You will be on for around £4381 a year if you had maximum qualification for the basic state pension and didnt qualify for SERPS/S2P.

Download form BR19 from the DSS site and send it off to get a state pension forecast.

Fillining in now online (http://www.thepensionservice.gov.uk/pdf/br19/br19intapr06.pdf) - thanks

moneyandmountains

dunstonh wrote:

Download form BR19 from the DSS site and send it off to get a state pension forecast.

No need for that nowadays.
If you think you will want to look at your state pension forecast more than once in the future, then if you can register to view your state pension forecast online. This links in with the Governement Gateway scheme that is often used for tax credits, self-assessment etc.

Maybe a limited degree more pain in the short term, but should make it easier to check again in the future.

CAE

Monkeymia wrote:

I'm in the Firefighters Pension Scheme (FPS), which is a final salary scheme and currently pay 11% of my salary with a retirement age of 55 (I have been planning to continue contributing and retire at 60 tho', which will give me the full 30 years). I keep getting mail suggesting I transfer to the New Firefighters Pension Scheme (NFPS) which collects 8.5% of my wage and retirement age is 60 (basically I think this is a much cheaper option for the Fire Service hence the suggestions to change).


You say you keep getting mail suggesting you transfer to the NFPS. I think you must be referring to the options exercise currently being undertaken, whereby you have been given statements showing the benefits available under both the FPS and NFPS for comparison, together with explanatory guides. You should consider carefully which scheme you want to be in by 31st March 2007, as there are special terms for transferring now which will not be available in the future.

The new scheme is a cheaper option, but you should make the best decision for yiur particular circumstances.

New firefighters are automatically in the NFPS.

Hope this helps