Fire service pension. Defer or transfer??

atush

As for the arguments regarding public sector versus private pensions i can't be bothered to get into arguments. The FPS is a good pension and optional therefore i shouldn't be criticised for joining it.

No one will criticse you for taking up a PS pension- we recommend it.

I'm not paying more money to the government purely for having a public sector pension. But this is also due to my age i will invested my money in something else.

You will be criticised for this however as it is shortsighted and dare I say stupid. THERE is NOTHING you can do with tha 900 that will even approach the new pension scheme not to mention you will lose your employers contributions. And that 900 will not 'go to the govt' but to help the govt pay for yours and others in your scheme's pensions.


Go on over the HL pension calculator and see how much your new contribs will buy in in 30 years compared with 30 years in the new scheme. It will be but a tiny fraction.

Doing this will be the worst mistake you ever make.

molerat

Another area to look at, are you married or intending to be. Your family may still get some compensation if killed "on the job" but what happens to them if you are killed crossing the road ?

atush

Yes, if you cease paying onto your pension your family will no longer receive any of the Death in Service benefits that go alongside.


So from your extra 900 you will also have to deduct heavy LI premiums as if you have a risky job you will be paying extra (which the govt pays for you if you are in the pension?).

dunstonh

The FPS is a good pension and optional therefore i shouldn't be criticised for joining it.

Not one is going to criticise you for joining it. It is the numptees that don't join it that need their heads testing.

I'm not paying more money to the government purely for having a public sector pension. But this is also due to my age i will invested my money in something else.

Are you now saying you are not going to stay in the scheme and thinking that alternatives will be better?

finossil

Nobody answered the initial question!

No they cannot change the deferral age...you will receive your deferred pension at 60 (lee1983)

I am a CM with 10 years and am leaving the scheme...I cannot afford the extra £100 per month in contributions and do not wish to do an extra seven years for MUCH less benefit in a scheme that the government can change as and when they wish!

You'll never find a better scheme is not an answer...good luck!

dunstonh

I am a CM with 10 years and am leaving the scheme.

As a tax payer, I thank you. However, that is just so short sighted.

.I cannot afford the extra £100 per month in contributions

Except it is not £100. You get tax relief on that and when you leave the scheme, your NI contributions will go up. Nothing else will come close to matching the benefits. So, all because you dont want to pay around an extra £70 pm you are going to throw away tens of thousands, or even into 6 digits.

Madness.

xylophone

You'll never find a better scheme is not an answer.

It is, you know!

Presumably you will continue to save for your retirement? You are happy to take the investment risk?

If you save outside a pension (in an ISA say) and fall on hard times, you will be expected to use your savings before you become eligible for means tested benefits.

Your NI will go up. And see http://www.telegraph.co.uk/finance/personalfinance/how-budget-affect-me/9161869/Millions-face-losing-top-up-pension-payments.html

Think on!

finossil

dunstonh wrote: »

As a tax payer, I thank you. However, that is just so short sighted.



Except it is not £100. You get tax relief on that and when you leave the scheme, your NI contributions will go up. Nothing else will come close to matching the benefits. So, all because you dont want to pay around an extra £70 pm you are going to throw away tens of thousands, or even into 6 digits.

Madness.

The extra seven years is a big factor! plus, I signed up to a pension of which every facet is being changed without my consent, who's to say they won't just change it again when the need arises?

It is not a decision I am taking lightly - thank you for the comments

finossil

A few of the other factors...

Was final salary - will be average salary
was RPI linked - will be CPI
was 11% of my wage - will be 14%
Could have retired at 53 - will be 60
Deferral age is 60 - will be 65...so if I defer now I get my accrued pension when all those that work through to 60 get theirs...can I do something else with the contributions in the mean time and save myself several years?

If I become unable to carry out the duties of a Firefighter during those extra years (53+ is pushing it for a very physically demanding job) do you think i'll be given early retirement or sacked on capability issues?

Any correction of errors or further advice will be gratefully received before I take the leap!! Thank you Finossil

rpc

Before making a rather large decision (which is quite possibly a bad one), have you worked out what you want to live on when you retire and how much it will cost you to fund that?

There is NOTHING you can do that will get you the benefits of the new pension for less money. Whatever else you do, your retirement age and/or income will be seriously harmed. You will be in control (subject to the whims of the markets and lawmakers), but you will be worse off.

It's easy to say you don't like the new pension, it gets much harder when you try to work out how to pay for retirement in another way. Taking your current contributions and investing them somewhere else, without having done the sums on retirement, is folly. If you are going to change, you need to know what you will get.