Do you stay in job just because of good pension, 30 years to go

Wellgood

Hi

Just wanting some advice. I currently earn 25k p.a. and have a non-contributory final salary pension calculated on 60ths . I am 35 years old. If hypothetically speaking I got 2.5% payrise each year from now to retirement (30yrs)I would probably end up on approx 50k p.a by the time I retire and therefore get a pension of approx 35k p.a (40/60 x 50k). Again roughly talking this would need a pension pot of roughly 700k if I was to buy an annuity that gave me an equivalent pension(please correct me if maths is miles off)

Problem is I know I could probably get an extra 5-10k p.a salary
if I left my company and went elswhere. (more money in my pocket now) but undoubtedly I would not get a non-contributory final salary pension so would have to start making monthly contributions into a pension and then buy an annuity on retirement.

My question therefore is roughly how much would I have to contribute monthly to match my pension I currently have?

Just wanted to get some of your opinions as 30 years is a longtime and I want to try and decide whether to stay due to the good pension or leave to get more money now .... have 3 kids therefore university/weddings to pay for,etc,etc

Thanks for any advice

CLAPTON

about 25% of your salary (including any emplyers contribution

tell_it_how_it_is

Think it depends how much you like or dislike your current job. If you hate it, I'd look for something else, with an eye on what pension provision there is of course. Otherwise might as well stay put.

Great to think about retirement but 1) there's a lot of living to do in the meantime, and 2) without wanting to sound morbid, there's no guarantee you will get there.

bigadaj

Could always apply for alternative employment and see what you get offered,could then use it as leverage with your current employer as they may agree to match it. If you do this you need to work out what is acceptable to allow you to move, and what conditions would lead you. To stay put.

traineepensioner

"Great to think about retirement but 1) there's a lot of living to do in the meantime, and 2) without wanting to sound morbid, there's no guarantee you will get there."
Totally agree....There's also no guarantee that your existing pension will remain non-contributory or even final salary

Mojisola

traineepensioner wrote: »

"Great to think about retirement but 1) there's a lot of living to do in the meantime, and 2) without wanting to sound morbid, there's no guarantee you will get there."
Totally agree....There's also no guarantee that your existing pension will remain non-contributory or even final salary

Or that your firm will still be in existence or that you will still be in a job in 30 years time - redundancy, health problems, need to move to another part of the country.

jackyann

I would always (other things being roughly equal) do the job that brings you the most satisfaction - my father always reckoned it was worth 50% of your salary.
Although I do have to say, that whilst neither he nor I have ever had high salaries, we did earn at least the average wage.

Voyager2002

I would imagine that the OP is a Civil Servant, so it is probable that the pension arrangements will remain unchanged, and highly unlikely that the employer would have the flexibility to match whatever terms were offered by a private sector employer.

I disagree with the reasons given for needing more money: so long as the present system of student grants and loans does not change, it makes more sense to take the maximum loan rather than meeting the costs up-front. Any spare money would be far better spent on private tutors and educational experiences while the children are still at school, so that they get the best possible 'A' level grades and so have a wide choice of good university courses. And flash weddings are purely a luxury: what counts is the relationship between the happy couple and the friends and relatives who attend, and it is perfectly possible to mark the occasion for less than the annual running costs of an average motor car.

As others have said, the real question is, what do you want to do with the next thirty years?

mrsrwallace

Voyager2002, you are so wise!! I was similar to the OP in that I always saw the end result as the main goal in life, the pension, the job security, the providing for my children. I was so busy trying to make money for the future that I have missed out on the last ten years of my life which can never be replaced. Also things change as in my household we went from a good lifestyle of being able to holiday each year, new car every few years, having money to do things at a whim to now being completely skint. Jobs are not always secure, money is never certain and while we plan ahead we are too busy ignoring the now. If we just could live for the day and take it as it comes it'd be so much simpler. I understand the OP's desire to be able to provide for their children but I know that my children will most likely remember me and their dad as parents who were constantly stressed and worried about finances and debt that we were no fun to be with a lot of the time.

Andy_L

Voyager2002 wrote: »

I would imagine that the OP is a Civil Servant,

Not with "a non-contributory final salary pension calculated on 60ths"

Spirit_2

At 35, then no. Ensure you have a job you enjoy and save for your pension by whatever means based on your earnings from that.

Sometimes pay packages are designed to keep a rope around someones neck. Unless your work is meaningful then hanging on for 30 years for the pension is high price to pay.