The Hard Life of the Defined-Benefit Scheme Member

FatherAbraham

I was chatting to a recently-retired acquaintance, who's about 15 years older than I. When he told me that he's now retired, I replied that I'm now seriously committed to a retirement date (I'm DC, so I get to choose), and working on achieving that.

So he asked me whether I'm now reducing work hours in preparation for the change to not working, in the way that he did in his last few years.

I found myself somewhat speechless, considering that my plans up to the retirement date mostly consist in trying to get a big enough pot together to avoid being well below the poverty threshold, and thus include considering increasing my workload or seeking a more stressful and better-paid job during the remaining years before retirement.

People like me simply don't have the luxury of worrying about how the change from full-time work to retirement will challenge us, psychologically speaking, because the more pressing existential question of having enough money to enjoy retirement gets in the way. Perhaps it's healthier not to be a DB member, and have real problems to deal with?

I expect Dr Maslow had something to say about this.

hugheskevi

I expect Dr Maslow had something to say about this.

Not sure about Dr Maslow, but I'm sure Muscle750 will have something to contribute

westv

I guess the Smurfs royalties must have dried up.

Triumph13

westv wrote: »

I guess the Smurfs royalties must have dried up.

You'd hope that one of his seven sons might be able to help out...

Wenlock

FatherAbraham wrote: »

I was chatting to a recently-retired acquaintance, who's about 15 years older than I. When he told me that he's now retired, I replied that I'm now seriously committed to a retirement date (I'm DC, so I get to choose), and working on achieving that.

So he asked me whether I'm now reducing work hours in preparation for the change to not working, in the way that he did in his last few years.

I found myself somewhat speechless, considering that my plans up to the retirement date mostly consist in trying to get a big enough pot together to avoid being well below the poverty threshold, and thus include considering increasing my workload or seeking a more stressful and better-paid job during the remaining years before retirement.

People like me simply don't have the luxury of worrying about how the change from full-time work to retirement will challenge us, psychologically speaking, because the more pressing existential question of having enough money to enjoy retirement gets in the way. Perhaps it's healthier not to be a DB member, and have real problems to deal with?

I expect Dr Maslow had something to say about this.

I expect you realise that many DB pensioners receive extremely modest pensions?

Whereas many of the posters on this forum have almost obscene sums in their pension pots but still delay retirement, despite having projected annual pension income way above the wage of regular workers.

bostonerimus

Whether it's DC or DB contributions are a major factor. The mandatory and long term contributions to DB plans often make the payouts richer than DC plans that have a poorer contribution records.

kinger101

Wenlock wrote: »

I expect you realise that many DB pensioners receive extremely modest pensions?

Whereas many of the posters on this forum have almost obscene sums in their pension pots but still delay retirement, despite having projected annual pension income way above the wage of regular workers.

The average employer contribution to a DC scheme is less than one third that of a DB.

https://www.employeebenefits.co.uk/issues/september-online-2017/average-total-contribution-rate-occupational-dc-schemes-4-2-pensionable-earnings/

The only reason people on here boast about good DC pensions is because they've been squirreling away a fair portion of their take-home pay into pensions. Naturally, this site, and this particular forum, attracts people who have an interest in saving.

Parking_Trouble

Wenlock wrote: »

I expect you realise that many DB pensioners receive extremely modest pensions?

Whereas many of the posters on this forum have almost obscene sums in their pension pots but still delay retirement, despite having projected annual pension income way above the wage of regular workers.

Define 'obscene'

It's all relative and depends if you had some choices about which industry/sector/company you went into and what level/salary you rose to. Baby Boomers had it better than most but you can't fault them for the time they were born. DB pensions and jobs for life were once the norm for many workers.

Everyone's circumstance are different. Don't waste your time putting down other people's situations. You need to focus on your own.

Paul_Herring

Parking_Trouble wrote: »

Define 'obscene'

"I'm jealous."

At least that's how it's coming across...

Silvertabby

“ Define 'obscene'
Originally posted by Parking Trouble

Paul_Herring wrote: »

"I'm jealous."

At least that's how it's coming across...

Someone once told me that I was 'lucky' to have an Armed Forces pension. Yes, I said - I'm very lucky - to have completed my 22 years service with my life, limbs and mind intact. Unlike so many others.

DT2001

I have a modest DB pension and a modest (I think) SIPP pot. These plus SP will produce less than the average wage. However I am very happy with my life and do not think I could have coped with the stress that so many high earners (and savers) seem to be under. They will have paid in more tax to the system than me and maybe are likely to draw their pensions for less time (any research into length of retirement and income?). Good luck to all.
As someone else said, each to their own and if the posters on here can continue advising well it will be a pleasure to read.