pension

[tris-]

my new employer offers a final salary pension scheme. but this sucker is going to take 5% of my earnings.
i dont know if im better off not paying in to it and keeping the cash, or should i go in to it from the off? would i still be safe waiting a few years and then paying when im earning some more?

im only 23 and thinking i might be dead by the time i get the payout anyway.
btw its a local government, so i dont think i could lose it all like a private business. unless a local government can go bankrupt?

 

[Lamp]

take the pension

 

[tris-]

take the pension

right from the outset though?
5% a month works out as a large chunk of the money i have left after paying for everything else.

 

[Chronictank]

right from the outset though?
5% a month works out as a large chunk of the money i have left after paying for everything else.

not many companies offer it anymore, take it while the offer is there

 

[crispy]

right from the outset though?
5% a month works out as a large chunk of the money i have left after paying for everything else.

Cut down on hookers and cabbage.

 

[tris-]

hmm what the fuck. just used the state pension calculator, and i cant start recieving it untill im

SIXTY EIGHT?!

that can piss right off. looks like the final salary scheme is payable from 55.

thats sold it for me.

 

[Aoami]

when i was working in local government all the old people used to go on about the pension being the only good thing about working there

 

[Ch3tan]

Bite their hands off. A final salary pension is a rare thing indeed these days.

 

[Lamp]

Too many young men & women in society are neglecting their financial future.

You need to stop spending everything you earn on computer games, pizza, & pussy and tuck some away for a rainy day. For you can rest assured, there WILL be rainy days to come, and you may be caught out in a torrential downpour with no umbrella or shoes and no one willing to shelter you from the rain that beats down so hard it makes your head bleed.

 

[tris-]

sorry dad i stopped buying computer games ages ago

 

[Moriath]

5% isnt anything and the sooner you start the more its worth at the end

 

[cHodAX]

Trust me, final salary pension funds will all be closed to new members in the public sector within the next five years and quite possibly within the next two years. Take it now, do not wait because it is the best pension system you will ever buy into, the rest of us get fucked over on private pensions.

 

[old.Tohtori]

Too many young men & women in society are neglecting their financial future.

You need to stop spending everything you earn on computer games, pizza, & pussy and tuck some away for a rainy day. For you can rest assured, there WILL be rainy days to come, and you may be caught out in a torrential downpour with no umbrella or shoes and no one willing to shelter you from the rain that beats down so hard it makes your head bleed.

Or...party all you want, spend all you want and have fun without the stress of needing everything to be "safe"

You know what i call people who leave a big heritage? Morons :lol:

Live while you can, enjoy it to the full and screw the government implanted "regulars".

 

[Olgaline]

Your a damned fool if you dont take the offer.
In DK the employer ahs no choice, he Must! pay you a pension
without eating in to your salary, it's added on top, and subtracted prior
to taxes.

 

[tris-]

Or...party all you want, spend all you want and have fun without the stress of needing everything to be "safe"

You know what i call people who leave a big heritage? Morons :lol:

Live while you can, enjoy it to the full and screw the government implanted "regulars".

but if i am still alive by 60 ish then im not going to want to work till nearly 70 am i? not if i can retire at 55.
you cant get your state pension here untill a certain age.

 

[old.Tohtori]

but if i am still alive by 60 ish then im not going to want to work till nearly 70 am i? not if i can retire at 55.
you cant get your state pension here untill a certain age.

Yeah, the 5% won't hinder you that much in regards to spending, you won't really miss it that much. Was just disagreeing with Lamps notion to act like a stuck up tootie about spending

Enjoy life man!

Though, i plan on working until they force me out. Depends on the job really.

 

[Moriath]

its 5% before tax as well .. so actually you will only notice 70 odd percent of 5%

 

[Lamp]

Or...party all you want, spend all you want and have fun without the stress of needing everything to be "safe"

You know what i call people who leave a big heritage? Morons :lol:

Live while you can, enjoy it to the full and screw the government implanted "regulars".

Yeah thats the spirit...........................................

 

[Aoami]

sitting on fh all day doesn't seem like that much of a party to me

 

[Killder]

It's more than likely your employer will also be contributing another 5%, thats how it normally works. So by not contributing you are actually losing 10%.

Take the pension - it's more than likely that in a few years time when you could afford to pay 5% they will have changed from a Final Salary scheme to something else and you wont have the option.

 

[taB]

my new employer offers a final salary pension scheme. but this sucker is going to take 5% of my earnings.
i dont know if im better off not paying in to it and keeping the cash, or should i go in to it from the off? would i still be safe waiting a few years and then paying when im earning some more?

im only 23 and thinking i might be dead by the time i get the payout anyway.
btw its a local government, so i dont think i could lose it all like a private business. unless a local government can go bankrupt?

The important question here is what percentage does the employer contribute if you pay 5%?

I pay 5% in and my employers pays 10% from their pocket (tax breaks and shit).

The longer you wait to start a pension saving the more you have to save it's some kind of exponential curve shit. Google it.

 

[cHodAX]

but if i am still alive by 60 ish then im not going to want to work till nearly 70 am i? not if i can retire at 55.
you cant get your state pension here untill a certain age.

55 is the big selling point of these pensions, a couple of close friends of my family both recently retired at 55 from the local council and took home very nice sums at an age where they are still in good enough health to properly enjoy the freedom that money brings.

 

[tris-]

thanks for the tips.
i reckon ill join up straight away, especially if it means not working till 70.
ill be half bastard dead by then.

 

[old.Tohtori]

Yeah thats the spirit...........................................

It is actually if you want to live like that, no worse/better then your lifestyle.

sitting on fh all day doesn't seem like that much of a party to me

Then why don't you get out once in a while.

 

[Tilda]

If you can do salary sacrafice to increase the % going in, its worth doing even if it takes a few hundred off your monthly take home. Its the difference between being quite comfortable when you retire, and only just comfortable. and you get tax relief!

 

[CorNokZ]

How can someone who's so inactive be a mod? His avatar is still wearing a santa-hat! WE HAVEN'T DONE THAT FOR YEARS!!

 

[kiliarien]

Some truthful and slightly misleading posts in here, coming from someone who's looked into this a bit (I used to have a teachers' pension, opted out atm). A few points:

Your employer, if it's a civil servant pension which it seems it is, will also be contributing what you do. So you do get an extra contribution from them and as is mentioned it's taxless. Also you get a National Insurance tax break from it too. All good.

Check if it is a final salary pension or a retroactive one. For example, the final calculable amount is based on the maximum wage you earned through your career if it is retroactive, rather than the one you actually finished on. It's a common trick to try and downgrade workers towards the end of their career to keep pensions cheaper.

Check if they are allowed to amend you early retirement age. Because right now 55 is classed as early retiremrnt for most civil srevant pensions - so you will sacrifice your final annual pension salary amount by taking it early. In teaching that was recently raised from 55 to 60, and it makes rather a difference in final annual amount.

Related to the above point - check if you are allowed to 'buy' extra years later on, so you can retire at 55 but it will keep the amount of annual salary the same as if you retired at 60.

And as someone has already said, if you 'forget' about it as lost money, then you'll never miss it and that's cool.

Hope this helps.

Personally, I opted out of what is still deemed an excellent pension. Reasons - I might well be dead before I'm close to it. I plan to get property later in life.
Pensions claims for my family if I die makes them worth nowhere near what I put in if it's collected majorly earlier.

 

[tris-]

it is the local government pension scheme Local Government Pension Scheme

 

[Fafnir]

OMG Just realized i'm over halfway to pension, WOOOT no more work... Just another 32 years of labour to go...

 

[Huntingtons]

How can someone who's so inactive be a mod? His avatar is still wearing a santa-hat! WE HAVEN'T DONE THAT FOR YEARS!!

I second that emotion.