Civil service vs private sector job offer

RS2021

Hi,

I have been offered two junior-to-mid level jobs, one by a private sector company and the other by a civil service (CS) body. The salary offered by the former is £40k, whilst that offered by the latter is £25,665. However, I am conscious of the CS pension, which, in this case, would include employer's contribution circa 21% of the gross salary, with employee contribution of 7.1%, being substantially more generous than the pension scheme operated by the private sector company (standard 5% employee contribution and 3% employer contribution calculated on pensionable earnings).

Assuming I am equally motivated (or otherwise) by the contents of both the jobs and all other employee benefits remaining the same, accepting which offer makes more financial sense? I understand that the financial sense of the CS employment may be realised over a longer period of time.

I am really torn between the two, leaning slightly towards the CS option, solely because of the job security. That said, redundancies are becoming more and more common in the CS too from what I hear. The appeal of the other offer lies, almost entirely, in its pay packet.

Thank you very much in anticipation of your considered views on this.

Best regards

TELLIT01

There is very little, if any, more job security in the Civil Service than in the private sector.  I worked in the Civil Service for about 7 years and there were at least 3 rounds of redundancy in that period.  The office I worked in is expected to close in the next year or so and there are no other offices within 30 miles, so redundancy for all staff is most likely.

If the salary difference was just a few thousand the enhanced pension might be worth factoring in, but a 60% difference would make it a no-brainer for me assuming both jobs appeal.

Andy_L

It seems unlikely that the CS is going to be allowed more than 1% cost-of-living pay rises for the foreseeable future and, unlike the wider public sector, most/all (?) departments have done away with pay progression so you can only get a pay-rise if promoted.

RS2021

Thanks both! It seems the consensus is tilted towards the private sector job?

biscan25

Other considerations:
Bonus in the public sector job? 
Paid time off in leiu in CS job.
I only know the CS in my sector: actuarial. Its well known that working for GAD (CS) is mundane and frustrating.

MovingForwards

Take the £40k role and drop nearly £15k a year into the pension, that way your pension may be on par with the CS role on retirement.

funnyvideo

My view is whilst you should think about the future to a certain extent, it's what's happening now that's more important. You don't know what's going to happen in the future and anything can change. 

When I was trying to decide what to do as a career I seriously considered becoming a teacher. I hated the sound of the job but was tempted by the retirement age of 60. It's not 60 anymore so thank god I didn't go down that road.

RS2021

Many thanks for your thoughts guys. 

Dazed_and_C0nfused

However, I am conscious of the CS pension, which, in this case, would include employer's contribution circa 21% of the gross salary, with employee contribution of 7.1%, being substantially more generous than the pension scheme operated by the private sector company (standard 5% employee contribution and 3% employer contribution calculated on pensionable earnings).

Are you sure you're making the correct  comparison?

The standard civil service pension is a Defined Benefit scheme so the level of your contributions and the employer contributions have no relevance, you are paying to get a guaranteed, inflation proofed, pension from NPA for the rest of your life.

Or are you thinking of signing up to a DC pension for some reason?

Thrugelmir

Putting the money aside. Very different worlds to work in.  Which would you be happier in. Civil service will suck the life out of you if you are of a dynamic nature. 

Lanels

Hi RS2021 - Hope you dont mind me asking but I am in the exact same situation at the moment and burning my brain trying to figure out which option is best to go for.....which option did you pick? Are you happy with you decision? Any advice greatly appreciated