Widow pension refund (I have no potential widow)??

bilbo51

trelore wrote: »

I will seriously look at whether paying 9.2% of my salary is actually worth it in the future!

Why don't you do just that?

Look into setting up a personal pension where you pay 9.2% of your salary into it, employer contribution zero.

Outcome = pension for life at retirement date = £X per annum.

Compare X with Y, the figure your pension administrator says you will get from your current scheme.

I'm not a betting man, but I'll take a punt on this occasion.

I bet that X is very much less than Y.

Do I win?

EDIT: I see from rpc's post #18 that I do. :cool:

FatherAbraham

rpc wrote: »

It's a very simplistic analysis but all in, even for a single person, it looks like the DB scheme wins hands down. I thought it would be a closer result in this scenario.

It's possible that a public-sector salary might be reduced relative to an equivalent job in the private sector to take account of the higher pension liability (= contribution) falling on the employer.

However, I must add that this doesn't seem to be the case in general. Where there are comparable jobs, they seem to pay about the same, within six percent or so.

The situation is most extreme for the lowest-paid, because the national minimum wage effectively places a floor on wages, but takes no account of pension contributions from the employer. Crudely speaking, public-sector unskilled staff are far wealthier than private-sector unskilled staff.

Warmest regards,
FA

atush

There was no venom i saw, just comments to your comments.

And your 9.2%, would have to be nearer 25% to pay for the pension you get. So you can't do better with just your 9,2%.

rpc

FatherAbraham wrote: »

However, I must add that this doesn't seem to be the case in general. Where there are comparable jobs, they seem to pay about the same, within six percent or so.

Which you would expect given that most of the population don't give two hoots about occupational pensions.

Of course, the wise of MSE would roll up a pension with the salary and look at total remuneration but they are the minority. Until auto-enrollment, I suspect you would be lucky if most people got as far as "oh look, they have a pension."

grey_gym_sock

rpc wrote: »

Which you would expect given that most of the population don't give two hoots about occupational pensions.

however, most ppl have been aware of which employers tend to look after their employees, and which employers just use their employees and spit them out again.

probably ppl think more often about job security than about good pensions. but both come from a similar approach to being an employer.

so i think ppl may have some idea of how well they're being treated, even if they don't understand pensions.

though, OTOH, if they think they're being treated badly, they may conclude the pension scheme is rubbish when it isn't.