Employer's pension scheme for a one-year fixed-term post?

gterr

Hi there,


Just when I'd made all my plans for a gentle glide into retirement (SIPP opened, contributions and withdrawals over the next few years planned) I have now been offered a fixed term (1 year) low salary part-time job, with the option of joining the firm's pension scheme. It's a defined benefit scheme. I don't think there'd be the option of getting employer contributions to a SIPP instead - the person I spoke to hadn't heard of SIPPs!


I will definitely take the job, but I'm not sure about the pension scheme. Is it worth joining a defined benefits scheme for a one-year fixed term job? I wonder what the options would be at the end of the year. If I did join the scheme I'd want to make contributions to my SIPP as well. (I contributed to another thread here recently where this was discussed, and obviously I'd have to make sure I didn't exceed the allowances for the year.) There is a small chance that the one-year post might be extended to a second year, if that makes any difference.


I haven't seen the details for the firm's pension scheme yet, so perhaps I'm jumping the gun, but I'd be grateful for any general comments.

atush

yes, it will be worth it.

If you only stay one year, you would probably have to transfer the money out at the end to your sipp but it will be worth a whole lot more than you put into it? Free money?

gterr

atush wrote: »

yes, it will be worth it.

If you only stay one year, you would probably have to transfer the money out at the end to your sipp but it will be worth a whole lot more than you put into it? Free money?

Thanks Atush,


That's sort-of what I thought, except that with it being only a one-year post I wondered if at the end I would just get my own contributions refunded, without the employers'. if so, it wouldn't be worthwhile joining the scheme.

atush

they will give you that choice, but as you are MSE I would assume you'd say "no thanks i'll do a transfer" lol

Should boost the old Sipp quite nicely I would have thought?

gterr

atush wrote: »

they will give you that choice, but as you are MSE I would assume you'd say "no thanks i'll do a transfer" lol

Should boost the old Sipp quite nicely I would have thought?

Righto. I'll double-check that this is possible. Thanks.