Will my pension rise with inflation if I stop paying in?

kwmlondon

I work in the public sector and have a final-salary pension. However, if I left this sector (education) and then got a private pension obviously I'd stop paying into the state one. My question is this:

Does the final salary rise with inflation between now and when I retire if I stop paying into it?

For example, if I earned £30k/pa and I've worked long enough to get 1/4 of that when I retire I'd be down to receive £7,500 a year but if I work another 20 years and pay into another pension would this one still pay £7,500 a year or would that rise with inflation over the two decades?

JoeCrystal

Index-linked. Which one depends on the scheme rules.

Cheers,
Joe

kwmlondon

JoeCrystal wrote: »

Index-linked. Which one depends on the scheme rules.

Cheers,
Joe

That's great. I was worried that if inflation went up (which experience says is likely) and I moved to another sector then the pension I'd built up while here may be worth next-to-nothing. Thanks - that's reassuring.

jamesd

"I'd stop paying into the state one" would normally be taken to mean paying into the state pension. And that happens whether you are in a public sector job or a private sector one. But I think you really meant that you'd stop paying into the public sector final salary pension, not the state pension.

kwmlondon

jamesd wrote: »

"I'd stop paying into the state one" would normally be taken to mean paying into the state pension. And that happens whether you are in a public sector job or a private sector one. But I think you really meant that you'd stop paying into the public sector final salary pension, not the state pension.

Glad you got my meaning, I don't discuss pensions often!

marlot

Ironically, with public (and private) sector pay restraint, my deferred pensions have been growing faster than my salary the last few years.