final salary versus stakeholders

waterworks_2

I have a choice between jobs the main difference in benefits is the pension
Currently I have a final salary pension but the job is unlikely to last more than 10 years. 1.83% per year of service.
The other job will last until I reach retirement but has a stakeholders pension. 13% contributions.
Is it a good Idea to use this as a selection critiera as I have heard final salary pension are being faized out.
thanks in advance

MarkyMarkD

13% is a good rate of contribution for the stakeholder, assuming that's the employer's contribution and not the sum of yours and theirs.

You would be personally taking on more risk by taking the job with the stakeholder pension as your pension in retirement will vary in line with investment returns and annuity rates.

With the final salary scheme, the benefits are obviously related to your final salary.

As you say, though, the final salary scheme might get phased out in any case.

It's not an easy decision.

waterworks_2

thanks for the reply but the 13% is the total 8 from the employer and 5 from me but this is my min contribution.
Like you say a hard decision

dunstonh

8% is still a good rate but its not likely to be as valuable as the final salary schemes.

Andy_L

A precise figure like 1.83% suggests it might be a career average rather than final salary.