Which Employer offers the best pension?

EveYvonne

Hi guys

Hoping someone on here can offer some advice on this one.

Basically I have about 15 years left until retirement and I haven't got much in the way of pension provision.

I'm looking for jobs at the moment but I wonder if you can help me focus on where best to concentrate my efforts, with pension being the most important criteria in my job search?

I'm looking mainly at admin roles and probably looking realistically at entering at the 15k -20k salary level.

As the world of pensions is ever changing, I really don't know where the best terms and conditions are now. I'm thinking along the lines of Public Sector, knowing that at one time Civil Service, NHS and Local Govt seemed to have decent schemes but I realise that these schemes all seem to be undergoing changes. So which one would now be best for a new entrant with 15 years service?

Just incase there are any questions about my suitability etc for such jobs, I believe I'm suitably qualified.

Also, I know it's perhaps difficult to predict, but if I were to get such a job and if say, I were to start, and even stay, at the 15k level, anyone any idea what sort of pension that might accrue over 15 years?

mania112

Tesco offer a final salary pension, so if you're looking for the 'easiest' job to pension ratio, that might be it.

ajbell

I think MP's have a good one.

mgdavid

EveYvonne wrote: »

..............
Also, I know it's perhaps difficult to predict, but if I were to get such a job and if say, I were to start, and even stay, at the 15k level, anyone any idea what sort of pension that might accrue over 15 years?

not difficult to predict at all - although some assumptions must be made.
Assume the FS scheme continues for the 15 years, assume it's a sixtieths-based scheme. then 15/60s will be awarded which is a quarter of the salary at retirement (or possibly a quarter of the average salary of the final 3 years).
Even with just RPI increase a 20k salary turns into getting on for 30k over the 15 years.

EveYvonne

Thanks for the replies, and, mgdavid thanks for the prediction info. So if I earned 20k for 15 years, then I'd get a 5k pension? that sounds ok to me when compared for instance to a private pension.

Must admit, I'm a bit confused with a lot of the pension terminology. When people talk about Final Salary schemes (thanks mania112 for the Tesco tip) does that usually mean it's a 'sixtieth' scheme, and is this sort of pension the best that's on offer?

atush

No, you'd get 25% of your final salary (or average salary depending on the job you choose). So, if you start at 20K, and finish at 30K you'd get 25% of 30K or 7.5K.

you'd get 5K pension if you ended on 20K per year after the 15 years having started at a much lower salary.

worldtraveller

IMHO you will be very lucky to find any private sector employer still offering a final salary based pension scheme, or even any defined benefit scheme in the next 5 years, let alone 15 years.

EveYvonne

Thanks atush for clarifying that.

I was actually thinking of Public Service jobs worldtraveller, although if terms were good, I'd consider anything

I did google Tesco, as mentioned earlier in the post but it seems they've pulled their Final Salary Scheme.

How exactly does something like that work, does it mean, for any new employees there's no FS pension, any exisiting employee still gets FS? Or can it be the case where you take a job expecting X sort of pension and then they change the rules and say we can only afford to give you Y?

I'm really not making much sense of what is actually on offer. NHS for example, is that classed as a FS scheme? I've looked at the website, read about 1995/2008 different pensions but can't see where anything stipulates 'sixtieth' FS or whatever.

Anyone got any other suggestions please on which employer to throw my cap at?

jem16

EveYvonne wrote: »

NHS for example, is that classed as a FS scheme?

At the moment it is, as with all Public Sector pension schemes.

However all Public Sector pension schemes are in the proposal stages of moving to Career Average schemes around 2014/15.

hyubh

jem16 wrote: »

At the moment it is, as with all Public Sector pension schemes.

If by 'all' you mean 'most' then yes. The civil service 'nuvos' and LGPS councillor scheme have always been career average.

atush

EveYvonne wrote: »

Thanks atush for clarifying that.

I was actually thinking of Public Service jobs worldtraveller, although if terms were good, I'd consider anything

I did google Tesco, as mentioned earlier in the post but it seems they've pulled their Final Salary Scheme.

How exactly does something like that work, does it mean, for any new employees there's no FS pension, any exisiting employee still gets FS? Or can it be the case where you take a job expecting X sort of pension and then they change the rules and say we can only afford to give you Y?

I'm really not making much sense of what is actually on offer. NHS for example, is that classed as a FS scheme? I've looked at the website, read about 1995/2008 different pensions but can't see where anything stipulates 'sixtieth' FS or whatever.

Anyone got any other suggestions please on which employer to throw my cap at?

Generally, a first step is to close a FS scheme to new employees. Later, they can stop current employees from adding extra years into a FS scheme and close it, but past years are protected. then the firm will have to propose a new defined contribution scheme which is usually more generous than the average- as they want to retain their employees.

So, if you join a FS (or average salary) scheme, you can pretty much count on keeping your years accrued.

Private FS/defined benefit schemes are being lost daily. So you'll have a much easier time joining one thru the public sector.