Pension advice - large company to smaller

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MRDOLLAR
MRDOLLAR Posts: 118 Forumite
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in Pensions, annuities & retirement planning
Hi all ,
Looking for a bit of free pension advice please.
I currently work for a large company .
I pay 10% in to work pension they then pay 16%. Which of course is fantastic.
The money is great too roughly gross £37,000 including shift pay per year.
Unfortunately I’m looking at leaving the company as the commute and shift work has taken its toll.
I’m looking at getting a 9-5 or better suited work life balance commute job around £30,000 so this will be a drop in salary. Also I have noticed the work place pensions tend to be around 5% and they match this.
So has anyone got any tips on the pension side of things and getting the best out of it . Leaving pension or moving jobs etc ?
Regards Mr Dollar

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  • dunstonh
    dunstonh Posts: 116,387 Forumite
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    Its not one we can answer. its effectively money vs short term lifestyle. Although reduced money and increased pension contributions from you could affect your short term lifestyle in other ways. Or if you dont increase your own contributions to compensate then its your long term lifetsyle that takes the hit.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Maybe you'll recoup some money on lower commute costs.
    Put as much as you can into the pension to at least get the employer matching but it will still be a big drop.
    Check how your money is invested in the old pension dont let it languish in rubbish funds - which will generally be the company default scheme which will be very cautious and not do you any favours if its going to be invested for say another 20 or so years? (just guessing)
  • tacpot12
    tacpot12 Posts: 7,972 Forumite
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    How old are you?
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • MRDOLLAR
    MRDOLLAR Posts: 118 Forumite
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    36 years young !
  • tacpot12
    tacpot12 Posts: 7,972 Forumite
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    While I appreciate you are at the end if your tether with your current job, leaving it will have a profound impact on your retirement savings - unless you can divert additional income to your pension when you change jobs. You are currently puttting/receiving 26% of your salary of £37,000 into your pension.

    I would encourage you to look for a new employer that will contribute more than 5% to your pension and try to make the total amount up to as close to 26% as you can afford.

    Had you been old and looking to retire at 55 I would have suggested staying in your current job, but at 36 I don't think this is a viable option for you.

    Try to take advantage of the fact you have a job on a good salary to negotiate hard for a good salary but closer to home.

    Best wishes
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • MK62
    MK62 Posts: 1,449 Forumite
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    Had you been old and looking to retire at 55
    ....:eek:;)
  • Dox
    Dox Posts: 3,116 Forumite
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    There's nothing 'magic' about the amount an employer will contribute to a pension scheme on your behalf. It's all part of the total remuneration package, so focus on that rather than individual bits of it. If you can find a decent base salary you could look at paying in more to your pension yourself (with tax relief) - it all adds up.

    Ultimately it's a case of which matters more to you: cash or lifestyle?
  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    tacpot12 wrote: »

    I would encourage you to look for a new employer that will contribute more than 5% to your pension and try to make the total amount up to as close to 26% as you can afford.

    Had you been old and looking to retire at 55 I would have suggested staying in your current job, but at 36 I don't think this is a viable option for you.

    Don't you think OP might have thought of that? Although at 36 he is, of course, fast heading to his dotage based on your concept of 'being old' before you've even reached 55!
  • sandsy
    sandsy Posts: 1,720 Forumite
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    That's extraordinarily high employer pension contributions - the level that would only usually be seen with a defined benefit pension.

    How is your current pension structured - does a pot of money build up with investment returns or do you get an entitlement to a specific level of pension each year in retirement?
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