Teacher’s pension v BAE systems pension

Foxy0_0

Afternoon all, I am hoping some of you can tell me which, in your experiences, is probably a better pension. I have left HMPrison service and gained a teacher qualification and I have been in the teacher in the career pension scheme for the last 4 years. I am 58 and out of the blue, have been offered a position, on slightly better salary with BAE systems. 

I am hoping some of you can tell me which scheme is better of the two considering I have only a limited working life remaining. 

Many thanks in advance. 

[Deleted User]

It looks like the new joiners BAE is a DC scheme with Employers contribution is 6%, employee 4% with optional additional matched contributions of 1 or 2%. Then optional additional non matched.
Perhaps one of those with knowledge of the Teachers  career pension can now comment.

Foxy0_0

I found this really helpful. Hopefully someone can now comment on the Teacher's career pension scheme.

OldBeanz

My son is a teacher and there is a whole raft of information about their pensions on the TPS web site. I have told him to value the pension as being worth 30% of his salary - a figure bandied about on here for HMG pensions.
Given that you have another HMG pension, at your age I would be looking at job satisfaction over pension. The other consideration being when and how you want to draw the pension as the BAE DC would be more flexible.

hugheskevi

Teacher's pension vs DC with up to 8% employer contribution for a 58 year old isn't even close. Teacher's pension is significantly better.

The 30% of salary value OldBeanz mentions above is a decent starting position. Also note that Teacher's pension has enhanced in-service revaluation of CARE (post 2015) scheme benefits which would be lost on leaving the scheme (you may not have yet moved into the post 2015 scheme given your age, but you will soon).

Retireinten

At 58, I would be working out how best to access your existing pensions, considering when you want to retire and how much income you want in retirement. The aim is to pay as little tax as possible if you can!  From there you can work out any gaps in your savings and the best way to plug that gap.. either a DB or a DC scheme! This may help you make the decision as to which is the best option for you. 

I am a huge fan of DB schemes (long standing LGPS member) but I've reached a point at 45 where my 'banked' DB income of £15k at 60 more than meets my income needs (bearing in mind our total household pension income). The longer I stay in the scheme the more income I bank over my target retirement income!  My savings gap is actually in years 55-60 for which I need ISA and private pension savings. Although I would not stop paying into the LGPS scheme (it's too good) I have reached a point where I don't feel I NEED to stay just for the pension.