Youngish and inexperienced - How am I doing?

AlanP_2

It's difficult to compare a DB versus a DC pension accurately, more gut feel and anecdotal.

If you use the often referenced 4% withdrawal from a DC pot then you can multiply the annual DB amount by 25 to estimate a value. If you think 3% is a more realistic rate then multiply it by 33.

I'm in the latter camp for DB income as at 4% withdrawal there is a risk your pot could run out before you die. At 3% that is extremely unlikely and you get the added benefits of spouse pension and life assurance so I use 33x Annual Pension to arrive at a nominal DC pot.

Albermarle

It is a DB pension that I have, I aware they are rare now.  But what I am not sure about is how do you compare a DB pension against a DC?  

In addition to the comments already made .

A private company offering a DB scheme can be putting a lot more into the scheme than they would with a DC pension.

Maybe as much as 25% , although as your contribution is relatively high at 10% , it might be less.

DC contributions from employer are minimum 3% legally , although larger employers and with professional staff can pay more, but usually not more than 10%. So if you moved jobs you need to probably compensate with a 10% salary increase just to cover the pension ( just a guess obviously without knowing full details )

MoneySavingAlly

Albermarle said:

DC contributions from employer are minimum 3% legally , although larger employers and with professional staff can pay more, but usually not more than 10%. So if you moved jobs you need to probably compensate with a 10% salary increase just to cover the pension ( just a guess obviously without knowing full details )

This is really helpful for when I look for new oppurtunties I will know how to compare pension provisions.

MoneySavingAlly

Would it be an unwise move to take money out from the offset saver (mortgage rate under 2%)  and top up my ISA allowance to the 20k this year?

Thanks,