Firefighter pension

wazza24

Hi all I am looking some advice regarding my pension. I am currently in the New Firefighter Pension (NFPS) and have been for 3 years. This pension came about in 2006 when the government closed access to the firefighter pension (FPS) for new employees. Now as part off this shake up of public service pensions the government is changing the fire service scheme again, creating just one scheme for all employees.

The problem I have is the amount extra I will be expected to pay from 2015, an extra 4.7% bringing my total contribution rate to 13.2% apparently it works out at an extra £115 a month which is gutting. This is on top off all the other changes they have made to the scheme. And another thing I just don’t trust the government to not attack our pensions 10, 15 years down the line. I have 27 years of service left. To be honest I am just feed up with the government and what feels like a constant attack on public service workers, but any way rant over. I am thinking of pulling out of the pension altogether and saving the money in the highest rate savings account I can find, now I have thought about the pros and cons of this, for example losing the employer contribution to my saving and that money then being taxed. The pros being, I’m in control of my money, I can get access to it as soon as I want in retirement and I can get larger sums of it when needed.

Any help and advice would be greatly appreciated. I my be missing the obvious here and should just sit tight on the pension or maybe there is real alternatives to a pension that I have missed, any advise will be appreciated, any further info needed just let me know.

Thanks

xylophone

What do you think inflation would do to your cash savings? What other benefits come with your pension? Do you have dependants? Even if you don't now you might have in the future! What would happen to them in the event of your death? It seems to me that leaving your scheme would be a very unwise move!

CLAPTON

you would be very very foolish to drop the pension: even with the new rules it's still vastly better than you can do for yourself

also consider the death in service benefits, spouse and children benefits

read the full details and work out what you will recive then work out what that would cost you if you tried to fund that yourself.

McKneff

You would be quite happy turning down all this free money that the tax payer is giving you for your retirement for the sake of being 'in control, You would be mad to come out of a scheme like that.

I wonder who is going to be the first to say

'Go ahead my friend, be my guest and save us all some money

wazza24

Thanks for the replies , ....... Very good McKeff, if only all them bloody public sector workers would just work for the minimum wage, we would could also save a fortune and maybe do away with their pensions too... remember I’m a tax payer, so its hardly free money from the tax payer, its an employer contribution, the government is my employer and will be until the day they privatise the Fireservice..... wise up. People on are on here looking advise not sarcastic remarks

atush

I understand your frustration at being asked to pay more, I really do. Esp as in the private sector we have to pay more in too, and haven't had a pay rise in 4 years. The money has to come from somewhere, but I suggest you find it.

No where (apart from winning the lottery or premium bonds) will you get as much back for you 115/mon extra. And if you stop paying in you will lose even more such as the above mentionned death in service plus survivors pensions. So, scrimp, save, look at reducing your ongoing costs such as utilities, insurance, phne, broadband, pack lunches, stop smoking, no pncy coffes or one less pint down the pub each time you go in. you will find it somewhere.

It is the best deal still out there, evenif you are frustrated to pay more for it.

wazza24

Thanks Atush, I appreciate the comment. and yeah i know your right.... Thanks again

djsmith200

Im in the same boat mate!
At work yesterday our union rep was discussing it all with us. Im the only one on my watch on the NFPS and like you are in two minds at the mo. My colleagues who have been paying into the FPS for approx 20odd years on the whole are advising me to be in control of the money.
things i am bearing in mind (some of which you no doubt are aware of)
The proposed scheme is apparantly only protected for 25 years. for many (me included) that wont bring me to the end of my career, so no doubt it will be touched yet again. seeing the worry of the older hands and even myself at the moment do i want that worry in the future.
Do i end up retiring at 60 (maybe later who knows) and potentially not even get to enjoy my pot of money?
will i be staying in the job for another 30years?? i hope so, but those days have gone now, and no doubt we will be attacked in the respect of bank holidays, london waiting, and shifts- will i only be hanging on in the job due to my pension when otherwise i could get out?
10 years ago the FRS striked for 30k pay. we have taken a pay freeze and will continue to do so for a number of years. we are still not even at 30k. some would say therefore that we have taken a back step a number of years in that time!

i could go on and on but i know you understand. good luck to us all! seems like a hell alot of people are potentially going to pull out which will mean that the whole scheme will collapse....

djsmith200

and the fact that they are planning to change something we signed up for, and if we opt out of it, we cannot access it straight away is beyond me. theyre are reasons fair enough, but they are the ones changing it so we should be able to get the money back!!

molerat

Pulling out will only hurt you (and possibly your dependants). Your benefits to date are protected. Whatever it is changed to it will never be beaten by any private pension. There are the death in service benefits to consider as well.

djsmith200

true... however i beleive they only get half of what is saved!