Is having a public health sector pension enough for retirement planning?

corganrocks

Hi all,

I'm 27 and have paid in to a public sector pension since the age of 22. I believe my contribution is 6% of salary which the employer then matches. General rule often expressed online seems to be to save 10% of income in order to have a half decent retirement.

I know that 10% is seen by some as an arbitrary figure and that it's best to try to save as much as possible but would it be accurate to say I am in a sense saving 12% due to the employer matching my contributions and therefore I am free to merrily frolic with my remaining income? I think in theory I could save about 50% of my pay even after the pension is taken out, certainly 20% without trouble, but I'm conscious of not wanting to spend my whole life up to retirement going overboard on the penny pinching so I can be a loaded OAP.

Thanks.

Bigmoney2

Depeds on if its a final salary/ defines benefit scheme or a money purchase/ defined contribution scheme.

atush

Public health pensions are generally defined benefit ones. Which is yours?

As to if it will be enough, that will depend on how many years you accrue, and how many people will beliving off the income along with personal factors such as if you woned your own home or were renting, and if the mtg was paid off etc.

dunstonh

I believe my contribution is 6% of salary which the employer then matches.

That makes it sound like a money purchase scheme. Whilst most public sector schemes are defined benefit.

General rule often expressed online seems to be to save 10% of income in order to have a half decent retirement.

Not heard of that one before. 10% could be too much for some but woefully inadequate for others.