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

taktikback

It comes down to what you want in life. You cannot underestimate the value of security and a good pension in old age -which is an argument for staying put. You would have to go some to match the value of a final salary 1/60ths pension.

I personally do not wish to be more senior than I am - but that is a very personal decision.

We had a close family upbringing. My mother died at 70 - too early - I have a wife and 3 teenage kids and whilst I'm not the most attentive father ever - I don't care more about my career than those close to me.

Only you can answer the question as to how your career defines you -If it does -change jobs - follow your dreams. If not, focus on the other things in life. What matters is that you don't look back and regret the path you have taken...this is not about finances...

..Some people say it's not either /or with careers...My experience is that it often is....

atush

If you don't hate your job, stay put for now esp with this economy. but keep your eyes open. Lster, when the economy improves you can move but do think that with non contrib FS pension, plus death in service you are talking a min 25%, but up to 30% of salary would have to be paid into a pension and Life assurance to make up for this after a move.

And if that comes with more hours/responsibility you could be looking at a 40% salary increase to make it worth it.

My OH works huge hours (but salaried so no OT) and you do have to take that into acct lifestyle wise. Esp if you have young kids, luckily his long hours began after promotion and the kids were a bit older.

BobQ

Taadaa wrote: »

I am in a similar situation to you. I have a final salary pension, been paying in for 15 years but it's only worth a couple of grand pa at the moment.

On what basis do you say that a FS pension is only worth a couple of grand pa?

Andy_L

BobQ wrote: »

On what basis do you say that a FS pension is only worth a couple of grand pa?

I suspect he means how much it will pay in annual pension, not how much it would cost to buy

Gracchus_Babeuf

Wellgood wrote: »

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

You should never stay in a job merely because of the 'golden handcuff' of a final salary pension. You need to like your job - that's the most important thing.
My feeling is that as you are well established with a major company you should stay, so I vote STAY.

Gracchus_Babeuf

CLAPTON wrote: »

about 25% of your salary (including any emplyers contribution

I would say a final salary pension is worth closer to 35% of salary as pension contributions.

Gracchus_Babeuf

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

And this is the key issue. Especially if the person concerned is working in the private sector, where final salary pensions are as rare as hen's teeth and getting rarer. Having said that, it's more likely that the company will stop admitting new members, but existing ones will retain their rights.

Gracchus_Babeuf

Wellgood wrote: »

All

Thanks soo much for taking the time to reply. There has been some useful views/perspectives

I think for the moment I will sit tight as I don't mind my job (How many people really love their jobs? )
I am relatively comfortable as wife works too and there are always other ways of making extra money i.e. ebay, second job,etc if we really needed more money. Plus costs like childcare will soon reduce/disappear over the next few years.

Also if I did move for a higher salary then it would likely mean more responsibility, hours, stress,etc,etc and I like to agree with some of the posters above on making sure you still enjoy your life and not to plan too much into the future as you might not even get there ( saying that surely my wife/kids would get some of this pension benefit if i died?)

From CLAPTONS response it looks like I would roughly need to contribute between myself and employer approx 500 quid per month meaning it would probably not be worth me moving for less then 7k pay rise just to break even

Thanks again.

PS 1 - I work for a global company in the private sector

PS 2 - Given the circumstances I have explained above would you all stay or go? Please reply "STAY" or "GO" if you can be asked

If you like your job and can make ends meet, then stay! :j
This forum is full of self-appointed 'experts' on everything under the sun, but sometimes you should just go with your gut instinct.