Should I defer my final salary pension

ferrett

Iam currently a member of a final salary pension with accrued guaranteed benefit of c15k. This is at 1/60th per year of service however without inflation increases and final salary considered for this is capped at c35k. My salary is now c double this cap.

This costs me 4%. Via salary sacrifice.

I also have an avc worth c£55k, contributing the max of 8% from salary with my company contributing 4%. Via salary sacrifice. However if I leave the final salary scheme I would no longer be open to this offering.

I can defer this final salary pension, at which time I would stop accruing benefit, my current accued final salary benefit would start increasing in line with inflation and I could start an alternative scheme with my employer. Where I would contribute max of 5% and my company 13%. My previous final salary cap mentioned would no longer apply.

I’m starting to think that I should defer my final salary portion as it would start accruing inflation based increases and start my companies alternative pension offering to get the inflation increases to my accrued final salary benefit.

Thoughts?

AlanP_2

So you contribute 4% of £35k to get 1/60th of £35k at scheme retirement age?

You also have an AVC pot alongside the DB scheme? What are the options for this when yu retire? Can you take it as the TFLS for the entire DB + AVC pot?

How much do you want / need when retired and how long until you want to retire?