Fire Brigade pension or private pension

Kev83

I'm trying to find out whats best I am on a new firefighter 40 year pension scheme which we pay 8.5% and the bragde pay 12.5% i think.
With all the changes coming in were we pay more in and get less out, would it be worth me pulling out of the fire brigade pension and sourcing a private pension from somewhere, I hear the Virgin Money pensions are a good bet.

I don't think the Fire briagde pensions provides a lump sum payment on retiring. I'm 28 so have a few years to go, any help or advise would eb greatly appreciated?

jem16

Kev83 wrote: »

With all the changes coming in were we pay more in and get less out, would it be worth me pulling out of the fire brigade pension and sourcing a private pension from somewhere,

Absolutley not. Nothing will even come close to it as you are throwing away the employer's contributions.

No defined contribution scheme will be anywhere close to a defined benefit scheme.

I hear the Virgin Money pensions are a good bet.

I don't know where you heard that. Virgin pensions are about the worst you can get.

I don't think the Fire briagde pensions provides a lump sum payment on retiring.

You can commute up to 25% of your pension to get your lump sum.

I'm 28 so have a few years to go, any help or advise would eb greatly appreciated?

Stp dithering and stay put. You will not do any better.

ViolaLass

If you put your money into a private pension, the fire brigade will not pay their 12.5% into it so you will be losing out hugely.

Don't do it.

BobQ

Kev83 wrote: »

I'm trying to find out whats best I am on a new firefighter 40 year pension scheme which we pay 8.5% and the bragde pay 12.5% i think.
With all the changes coming in were we pay more in and get less out, would it be worth me pulling out of the fire brigade pension and sourcing a private pension from somewhere, I hear the Virgin Money pensions are a good bet.

I don't think the Fire briagde pensions provides a lump sum payment on retiring. I'm 28 so have a few years to go, any help or advise would eb greatly appreciated?

If you are thinking about doing this you need to seek independent financial advice. If you are a member of the FBU they will probably suggest one but you can choose your own.

My view is that whatever changes are made to your current scheme you are still going to have a defined benefit scheme albeit based on your career average salary that your employer contributes a significant sum towards (extra to your salary and contributions). A private pension is likely to require a bigger contribution from you for the same benefits, and its unlikely that your employer will contribute more than they are legally required to do.

A lump sum is not necessarily the best pension benefit compared with income but if it were you could convert part of your pension to a lump sum but that is a decision for the future.

dggar

Kev83 wrote: »

I'm trying to find out whats best I am on a new firefighter 40 year pension scheme which we pay 8.5% and the bragde pay 12.5% i think.
With all the changes coming in were we pay more in and get less out, would it be worth me pulling out of the fire brigade pension and sourcing a private pension from somewhere, I hear the Virgin Money pensions are a good bet.

I don't think the Fire briagde pensions provides a lump sum payment on retiring. I'm 28 so have a few years to go, any help or advise would eb greatly appreciated?

You should speak with who ever administers the pension scheme. they will be able to tell you whether there is a lump sum element. They will also tell you what the penion (either monthly or annually) will pay you when you come to draw on it.

Then check what contributions any private scheme would need to match it.

cupkate

I'm no pensions expert but used to work for DWP pensions. When private pensions for the masses first came out (around 20 years ago? ), the advice was to stay with employer's pension scheme. The returns on a private scheme are rarely, if ever, as good.
Also, there will be no employer's pension contribution if you switch to private.
Therefore, you would have to contribute more to get the same pension from Virgin(or any other) than you would staying in employer's scheme. As far as I can tell, this advice hasn't changed
If unsure, see an INDEPENDANT financial adviser

JoeCrystal

Kev83 wrote: »

I'm trying to find out whats best I am on a new firefighter 40 year pension scheme which we pay 8.5% and the bragde pay 12.5% i think.
With all the changes coming in were we pay more in and get less out, would it be worth me pulling out of the fire brigade pension and sourcing a private pension from somewhere, I hear the Virgin Money pensions are a good bet.

I don't think the Fire briagde pensions provides a lump sum payment on retiring. I'm 28 so have a few years to go, any help or advise would eb greatly appreciated?

No, No and No. Pulling out of one of the best pension schemes in the country is easily one of the worst decision you could make in your lifetime. Keep on paying into it!

Cheers

Joe

sheffield_lad

These posts keep coming up, public sector staff who seem clueless on how good a deal they get.

I think this may well be the fault of the unions, I have a feeling plenty of PC workers will be out on strike come the 30th but they won't really have a clue why or how good their schemes compared to the rest of us are.

BobQ

howee wrote: »

These posts keep coming up, public sector staff who seem clueless on how good a deal they get.

I think this may well be the fault of the unions, I have a feeling plenty of PC workers will be out on strike come the 30th but they won't really have a clue why or how good their schemes compared to the rest of us are.

Here we go again...... another thread being turned into an anti-union whinge....

sheffield_lad

Bob the threads over, unless you want to tell the guy we are all wrong and he should leave the scheme?

So why are NHS, fire brigade staff etc coming on here and start threads suggesting they are thinking of starting a private pension? The only reason is because they are misinformed over what they are actually going to have even after the changes.

I would love to see a pole of how many public sector workers believe that the changes to pensions via Hutton effect their EXISTING pensions, Unions are not making anything clear I suspect most think their historic pensions are being robbed too.

Yorkie1

The change from RPI to CPI will have an effect on the historic part of the pension accrual, as well as anything accrued under the new terms.