final salary pension at 32

polo2000w

The worst thing you could do is opt out. Final salary schemes are incredibly valuable - what you pay is a fraction of the real cost of providing you with the pension. There is also a government backed protection scheme now in place for all pension schemes.

harryhound

I feel that is a slightly simplistic posting. Here I am talking about the private sector.
Final salary schemes are good value for senior members of the company and loyal servants who work there for a lifetime. That is rare these days and such people may well have done better by progressing their careers by moving to a "better" job and improving their CV.
If you stay where you are you may become surplus to requirements in your 50's, especially if you work for an old fashioned firm staffed by "lifers".

I worked for the last 20 years of my career, paying 5 - 6% of my salary into a pension scheme and knowing the score agreed to take an early (enhanced) pension in my late 50's. So far I am pleased with my decision as the pension is still being paid! The company has been taken over and my job no longer exists.
Some of my former colleagues are still working for the rump of the organisation and paying considerably more than I did to keep the pension fund on track and stop it being hived off to an insurance company. Thanks guys!
I wonder if the decline of the company was inevitable? Perhaps that long pension contribution holiday had something to do with it???

My message to anyone under 35 is get rid of your BAD credit commitments, and decide where you see yourself going, only THEN decide how much you want and can afford as a pension fund. With a bit of luck you will stay healthy and will be able to work into your 70's if you really need to.
"My family will only benefit from the Death in service scheme if i'm with the pension fund." I see that you are a family man. What sort of family? Just you with a lump sum going to your parents? Wife and 1.8 kids? This could mean four parents that might need to be cared for in their dotage? Wife working? etc. etc. etc. Please read the deed, I would be surprised if at least the "half" orphans are not covered and the spouse does not get some sort of pension. If there is stuff you don't understand, if you post the clauses here, I'm sure someone will be able to point you in generally the right direction.
Have you made a will?

Harry

PS When I moved to my final employer, I had 10 years of contributions to my previous employer's fund worth xxxx.
"What will you give me in your fund if I transfer this xxxx" admittedly the previous company's scheme was not as "good", but it had only cost me 2.5% of salary.
"2 extra years" came the reply. Well it is still where it was, the fund still exists and the pension (naturally) is continuing to grow.
After I had worked for the new company for 4 years I got a "What will you get if you leave" statement. The figure was almost exactly the same xxxx amount.
IE If you give us xxxx we will take on two years of liability for you in your old age BUT if you agree to release us from four years of liability to you in your old age we will only pay you the same amount. You work it out!

exil

That means that if you want to transfer values it's best to do it sooner than later. I've fallen into the same trap.

The logic is - your salary in your new job is (hopefully) now higher than it was in your old - so x years in the old scheme is now going to buy fewer years in the new. Wish I'd thought of this 10 years ago.