Best DB pension scheme?

p00hsticks

Please don't choose a public sector job simply because it offers a good pension.

Choose something that you enjoy doing and are good at. 

In my personal opinion, we really don't want people in the NHS, Civil service whose prime motivation for being there is that they see it as the best way to retire from work early. 

Universidad

p00hsticks said:

In my personal opinion, we really don't want people in the NHS, Civil service whose prime motivation for being there is that they see it as the best way to retire from work early. 

You're not wrong that it would be good if people went into jobs because they wanted to do them well.

But it's not incentivised,  and I find it hard to expect individuals to act selflessly in seeking employment opportunities.

I had a career I was passionate about once, and my employers knew it attracted passionate employees, and the salary started low, and declined in real terms throughout the entire time I was there. The passion tax is very real.

Now I have a new job in the civil service, and you had better believe I am only there for the pension.

It should be enough that I fulfil my contract to the best of my abilities.

The experience of my life is that the minute an empoyer realises that I like what I do, they'll screw me for it.

I'm not sure why employees should be held to a higher standard!

Pat38493

Universidad said:

The civil service pension scheme currently has an actuarial reduction of about 40% if you retire ten years early, so a 10,000 pension becomes 6000 per year.

That's about a 5% compounded reduction per year.  The last estimate I got from my DB pension seemed to be working on about a 4.2% compound reduction per year, but I guess this is all complicated calculations as the increases in payment might be different between different schemes.  I think the comments on here mentioned that about 4.5% per year seems to be the rough expectation for taking DB pensions early.

Universidad

Pat38493 said:

That's about a 5% compounded reduction per year.  The last estimate I got from my DB pension seemed to be working on about a 4.2% compound reduction per year, but I guess this is all complicated calculations as the increases in payment might be different between different schemes.  I think the comments on here mentioned that about 4.5% per year seems to be the rough expectation for taking DB pensions early.

I believe it's more like a 5% reduction per year for the first 5 years early, and then 3% per year for the next 5 years early. (Specifically talking about Civil Service Alpha here).

Sarahspangles

p00hsticks said:

Please don't choose a public sector job simply because it offers a good pension.

Choose something that you enjoy doing and are good at. 

In my personal opinion, we really don't want people in the NHS, Civil service whose prime motivation for being there is that they see it as the best way to retire from work early. 

I can’t speak for the whole NHS but given the number of vacancies we’ll work with what we get. People with transferable non clinical skills are useful to release clinically trained staff back to clinical work.

The first hurdle is understanding that on the NHS Jobs website if you’re not clinically trained, you can only be Estates & Ancillary or Admin & Clerical.

jimi_man

Silvertabby said:

JoeCrystal said:

Bank of England wins on the lowest contribution rate as it is still non-contributory, although the accrual rate is only 1/95th of the average salary yearly. 

During my LGPS days, I was often asked if that was the best pension they could have.

I used to reply that that while there were other pension schemes out there, the LGPS was one of the best because.......list benefits.

Couldn't really tell them that the LGPS was nowhere near as good as my AFPS75!

Indeed. I’m fairly happy with my police pension - 2/3rds after 30 years and able take it from age 48 if you joined early (51) in my case. 

Andy_L

Universidad said:

The police and fire service are about the only schemes still open that let you retire before state pension age, without reduction.

Armed Forces let you do that as well. Although not many get the career path to serve until 50/55 when it kicks in

Andy_L

Sarahspangles said:

p00hsticks said:

Please don't choose a public sector job simply because it offers a good pension.

Choose something that you enjoy doing and are good at. 

In my personal opinion, we really don't want people in the NHS, Civil service whose prime motivation for being there is that they see it as the best way to retire from work early. 

I can’t speak for the whole NHS but given the number of vacancies we’ll work with what we get. People with transferable non clinical skills are useful to release clinically trained staff back to clinical work.

The first hurdle is understanding that on the NHS Jobs website if you’re not clinically trained, you can only be Estates & Ancillary or Admin & Clerical.

Engineer & Scientist jobs can turn up under other groups. (perversely lots of scientist jobs aren't in the "Healthcare Scientist" group where you'd expect them to be)

daveyjp

Any DB is a benefit not to be turned down, but the LGPS isn't what it once was.  My grandfather retired in the early 80s with over 30 years service.

He was by then a senior manager and his final salary lump sum was enough for him to buy a second property without need of a mortgage.

Silvertabby

Andy_L said:

Universidad said:

The police and fire service are about the only schemes still open that let you retire before state pension age, without reduction.

Armed Forces let you do that as well. Although not many get the career path to serve until 50/55 when it kicks in

No reductions when we retired in our 40s.