Different Employer Schemes

Daniel54

Just to be clear,in your new job the pension contributions are from gross salary ( they usually are in DB schemes) ?

So the cost to you after tax relief will be 7.2% on basic rate earnings and 5.4% on any higher rate earnings

hyubh

magpiecottage wrote: »

Despite what others have said, the company is not committing to add 19%.

'Committing' is not the right word, however how fake the 19% is will depend. If a multi-employer scheme and the employer isn't expected to be in it for ever-more, then the rate will likely be determined with the aim to avoid a balancing payment when the employer exits (with the caveat there will be various other factors determining that too).

I once worked for an employer who had managed to invest the pension fund sufficiently well that for many years it did not need to pay anything more.

How long ago? Go back 25 years and accounting standards for pensions were a lot looser than today, and the tax regime for companies discouraged running 'surpluses' (as defined by the time).

hyubh

Darozzi wrote: »

The job I have been offered is a Final Salary/DB scheme. The details are 1/60 accrual rate. So assuming I stay there for 5 years, that would equal a pension of approx £6,000 per year when I retire.

Public or private sector scheme? If the latter it would be prudent to assume it will will be closing long before your retirement.

My main concern at this stage was the fact that 9% of my pay would be deducted from my salary each month

I don't think that should be your 'main concern' to be honest - the viability of the scheme is more what I'd concentrate on.