My work wrote to me yesterday regarding making my pension a DC scheme from a DB scheme and from November this would be the default scheme and I would have to get in touch if I wanted to stay in the DB scheme a quick google search to find out what the feck a DC scheme is and the difference between the 2 and as I read it a DB scheme is better anybody working in pensions on here for some advice. I think personally work are trying to shaft us phoned the union up and they don't have a clue. Thanks
Found this HERE "Defined contribution pensions can be accessed flexibly from age 55 so this may seem like an attractive option. However, in most cases you‘ll be worse off in a defined contribution pension and for this reason it’s rarely a good idea to transfer even if your employer offers incentives for you to switch."
I used to work in pensions. DB means Defined Benefits... it's quite an old-school pension, whereby your pension is usually calculated as a multiple of your salary at time of retirement (hence why it's often referred to as "Final Salary"). Because of this, and the fact that most career paths would hope to see you as Management (i.e. big salary) by the time you retired, it is often thought of as the best type of scheme... but it totally depends on what career you're in, what sort of salary you expect to be on by retirement, and what the all-important multiplication factor is. DC means Defined Contribution. This is simply whacking your money into a pot which is invested (usually in stocks/shares). When you retire, the money in the pot is used to buy a pension. New rules mean you have a massive amount of choice about how you use your DC pot of money, whereas there is no choice with DB. But ultimately, the value of your pot will be governed by how much you put in, and how well it is invested!
To give you an idea of the DB vs DC issue, a lot of the public sector strikes we've seen in recent years (Teachers, Firemen, etc...) have been because of plans to replace their DB pension with a DC equivalent!
I would have thought that the pension provider (the actuall provider,not the company) would have a rep that you should be able to speak to regarding any pension issues,and tell you all the different options you have,giving you a forecast of your final pension value etc.
Its being moved from Zurich to Black Rock lower management costs apparently im off today will find out more tomorrow everyone received a letter in the post yesterday.
Steve, funny as that might be and I have valued most of your forum comments this isn't one of them mate. Forward planning is very important Dave, without going into details my old man gave me some very wise words when I came home with my first pay packet. 'Pension son..........you might not live long enough to enjoy it but what if you do'....... for this reason I have paid into work and private pensions ever since and as I am getting older I am paying more and more avc's every year, especially important if you have a salary sacrifice system. Whilst life and my own actions have dealt me some good and bad cards over all I am doing ok, my divorce has put my retirement back by about ten years but I am still all good for calling it a day at 60. 6 years or before.........I cant flipping wait and if you like me you will have already set up some part time consultancy work. Happy days. Think on Dave that's all I have to say.
as above,especially now with companies having to make a contribution to your pension aswell,the more you can stick in,and as soon as you can makes a huge difference to the final pot. to give you an example,i've had a pension scheme since the age of 17 (under the advice of my dad ),i earned next to nothnig at the time,so stick in £20/month,i've been doing that for 25 yrs,never even changed the amount as i started another pension scheme about 10 yrs later which i classed as my "real" pension.so thats a total contribution of about 5.5k into the "forgotten" one.it's now worth over 40k. also,if your lucky enough to be in the higher tax bracket,it makes even more sense to stick as much away as possible as you get tax releif at 40%,but dpending on your drawings come pension time will only pay the lower tax bracket. as boring as they are,thye really are something that you need to sort out as soon as you can
It was a joke , I will probably be facing similar as the company I work for is currently going through a takeover , so maybe our current pension will no doubt be changing , personally I don't think I will have as much as I'd like come retirement time. So yeah I know it's an important thing
I'm in a DB scheme and its way better than the dc one they brought in, like others say tho it depends on your salary & circumstances etc. I'm just glad I had a sober moment many years back & got one because come spring ill be able to retire early & it will have been worth every penny!
Well apparently its just Bronze level scheme that their altering fortunately im in the gold scheme there are only 40 drivers in the country in this scheme all new starters are in the Bronze scheme with no opportunity to move up to Silver/Gold the union told me the Gold scheme is ring fenced but time will tell if they decide to come after ours. Thanks for the info though.
Put simply Dave, DB means the risk is on the company, and you know clearly what you will get DC means the risk is on you, and you are at the vagaries of the global stock markets and you ain't got a f*cking clue what you will get and your company don't give a fu*k either Been there, got shafted and still having to work longer than I planned
If you are able too stay in the DB scheme? I had to come out of my DB some years ago as I left the company, the scheme was eventually wound up due to cost issues and I was given a substantial contribution bonus £30k to add to the pension pot. I could then reinvest into a scheme of my choice, I contacted a pension expert and with a low risk investment strategy, the fund has increased by almost 100% in 6 years, plus I have withdrawn some from the fund to use as a deposit for a buy to let property, which is also providing an income boost. I guess I have been fortunate but if one of your options is to reinvest elsewhere take some independent legal advice and consider.
I don't believe Im reading a Thread on Pensions on 1000r Mor amazing though is Im actually finding it useful, cheers guys lol
