Millomite Posted August 9, 2006 Report Share Posted August 9, 2006 I have been offered a job with a career average salary scheme. I am also in the application process for a job with a final salary scheme. Can anyone explain the pros and cons of each as I have just graduated from uni and have no idea about pensions lol Cheers Scott Quote Link to comment Share on other sites More sharing options...
dazza Posted August 9, 2006 Report Share Posted August 9, 2006 try www.pensionsorter.co.uk for some advice Quote Link to comment Share on other sites More sharing options...
pin Posted August 9, 2006 Report Share Posted August 9, 2006 I have been offered a job with a career average salary scheme. I am also in the application process for a job with a final salary scheme. Can anyone explain the pros and cons of each as I have just graduated from uni and have no idea about pensions lol Cheers Scott It really is as simple as it sounds. Both are only really of any value if you intend to stay working for the same firm your whole life, if you leave they turn into very ordinary schemes, usually. It is rare to be offered final salary schemes these days, most have phased them out as they cost the company a fortune. Oh for a final salary scheme Quote Link to comment Share on other sites More sharing options...
Pedro Posted August 9, 2006 Report Share Posted August 9, 2006 Go for the final salary scheme. P. Quote Link to comment Share on other sites More sharing options...
Millomite Posted August 9, 2006 Author Report Share Posted August 9, 2006 I think I prefer the actual job with the career average scheme though Quote Link to comment Share on other sites More sharing options...
Cranfield Posted August 9, 2006 Report Share Posted August 9, 2006 Most employment related pensions are transferrable, so that if you leave and join another Company, you can get a transfer value for the contributions (or credits) you have in your current Pension Scheme and transfer them to your new Scheme. As has been said, Final Salary Schemes are the usually best, but they are becoming very rare and most Companies that have them, do not admit new employees as members. The easy answer is that almost any Pension Scheme is a good one. It is becoming more and more important for individuals to make their own pension provisions. I believe the State Scheme will become a means tested benefit before too long, as opposed to a "right". Quote Link to comment Share on other sites More sharing options...
Mungler Posted August 9, 2006 Report Share Posted August 9, 2006 They reckon that most final salary schemes available now to people in their 30's or younger, will be phased out by the time retirement comes around or that any remaining final salary schemes will be "light" of the required funds to make them viable. I know that in the Court Service there is much hoo haa about people on final salary schemes having the goalposts moved on them. Again, you would have to look at the small print of your contract to see if your pension entitlement is contractual or discretionary or otherwise dependant on other factors (aka goalposts) which can be subsequently altered unilaterally (aka moved). Just don't get a pension with the Daily Mirror. Quote Link to comment Share on other sites More sharing options...
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