MegaSack DRAW - This year's winner is user - rgwb
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I have a job offer that comes with a final salary pension. An alternative job is likely to pay £10K more (might even be £15K).
I realise I'm not giving much info but I don't really want to share everything here.
Any advice?
depends really.
What's the actual salary ?
if it's £400,000 and £410,000 it doesn't much matter..
If it's £30,000 an £45,000 then it may do.
Personally all things being equal I'd take the higher salary as you can then manage your own pension plans, including options outside a traditional pension. That said there are far more factors that come way higher than money when choosing a job for me.
Double post
What % of your salary do you have to contribute to the pension scheme. What % of your final salary to you accrue each year. How many years left have you till retirement?
Be aware the final salary might not be in place when you do retire.
Well you could just add everything up in the overall remuneration package and see which job comes out on top. HMRC gives a "value" of the final salary pension will be 20 times that of the benefit accrued each year. So for every £1000 of pension benefit you earn that is taken as a equivalent of £20,000 of pension contributions. In reality at the moment it is more like 40 times on a like for like basis.
Do the sums and see what one comes out on top. I suspect it will be lower paid one with the final salary scheme though.
Which one has better prospects/promotion/rising pay scales/health benefits? Does the higher paid one also have a decent pension, just not a final salary one? Which do you prefer? Commute time?
Bear in mind that a lot of places are winding up FS pension schemes at the moment.
What’s the question?
Not enough information for any meaningful "advice". Off the top of my head I think you'd want to answer at least the following:
Age?
Salary?
Tax status?
Final salary but how much is the employee contribution?
Job prospects?
Funding position of final salary scheme?
What other pension provision / retirement plans do you have?
When will you retire and how much do you need?
By final salary I assume you mean a Defined benefits scheme? What is the other scheme. A defined benefits with career average or a defined contributions scheme?
DC schemes should come with reasonable salary advantage although as bruneep implies always bear in mind that pension schemes arent protected as well as some might think and you can be screwed over.
Obligatory I aint a financial adviser or anything close excuse for misguiding you.