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[Marks DTM Calib]

Think I get about one of the best pensions outside of the public sector, I pay in 4%, company pays in 8%. What that actually equates to, I have no idea 

Still can't complain, I've just had a 4.5% pay rise and 10% bonus 

Sadly, not as much as you would think, it would be a long way short of that which the teachers etc get.

[tunnie]

Think I get about one of the best pensions outside of the public sector, I pay in 4%, company pays in 8%. What that actually equates to, I have no idea 

Still can't complain, I've just had a 4.5% pay rise and 10% bonus 

Sadly, not as much as you would think, it would be a long way short of that which the teachers etc get.

I just been doing a quick search, came across this:

http://www.teacherspensions.co.uk/scripts/pencalc2.asp

I put in a final salary of 30k, with 35 year service. The pension itself comes out at 13k which is about average, but where on earth does that 40k Lump sum in addition come from? 

[aaronjb]

These are hardly average incomes that are being discussed here 

Oh I know - I was surprised, actually.

Think I get about one of the best pensions outside of the public sector, I pay in 4%, company pays in 8%. What that actually equates to, I have no idea 

Still can't complain, I've just had a 4.5% pay rise and 10% bonus 

If it's anything like mine then, as Robert says, surprisingly little! I pay in 5% and the company pays 5% - at 65, that will be worth a staggering £12,000 a year.

Go me.

It sounds a lot but it isn't. Firstly you will get taxed on every penny of it as your state pension will have taken up most/all of your tax allowances.

Oh I know - my point was exactly that it isn't a lot.. in fact, it's pretty abysmal - especially given I don't expect there to even be a 'state pension' by the time I retire.

Then again, I don't expect to make 65, so..

[albitz]

Think I get about one of the best pensions outside of the public sector, I pay in 4%, company pays in 8%. What that actually equates to, I have no idea 

Still can't complain, I've just had a 4.5% pay rise and 10% bonus 

And nor will anyone else. The contributions will be invested, and the value of your pension on retirement will depend on the return on the investment. Thats how pensions work these days - outside of the public sector.And its the only possible way they can work, unless you have means of taking the money from someone else to pay for your guaranteed monthly income.

[Varche]

Think I get about one of the best pensions outside of the public sector, I pay in 4%, company pays in 8%. What that actually equates to, I have no idea 

Still can't complain, I've just had a 4.5% pay rise and 10% bonus 

Sadly, not as much as you would think, it would be a long way short of that which the teachers etc get.

I just been doing a quick search, came across this:

http://www.teacherspensions.co.uk/scripts/pencalc2.asp

I put in a final salary of 30k, with 35 year service. The pension itself comes out at 13k which is about average, but where on earth does that 40k Lump sum in addition come from? 

[/highlight]

That is an easy one to answer. Savvy folk get a wage and a good pension. Part of that good pension is a lump sum typically 2 times or similar final salary. A large amount of it is tax free too. Like I said earlier. cake now or cake later!

Also meant to say that if you get your pension planning wrong and end up with state pension plus a crappy small pension you will not qualify for a lot of things that folk with nowt get by virtue of being viewed as having means. 

[Marks DTM Calib]

The lump sum is available to all.

When your plan matures you have to buy annuity which is the plan that pays your monthly pension payment.

However, you have an option to take upto a third of the plans sum before purchasing the annuity (clearly your monthly pension payment will be less as a result).

This can actualy be a sensible thing to do (and more so given the increase in pension age) as you then get some guaranteed benefit from your years of paying in and gamble less on how long you are going to live. This lump sum could be spent or invested to top up your monthly pension (but the key thing is that it will continue to exist and not simply die with you like a pension annuity - although your other half may be entitled to receive some of your pension after your death....do beware though, some annuities dont support that!)

[Marks DTM Calib]

As an idea of a calculator for a 'non public sector pension'

My old final salary scheme (now frozen) was something like

(Final salary averaged over the last 5 years service x (no of years contributions/55) x 60%) - state pension. (note state pension is about 7900 a year)

Which, given how much I contributed, was not much!

[Marks DTM Calib]

Just did a quick calc, on a standard private pension, you would need to save about £600k to be able to retire at 65 with a 28K per year annuity!

Hence why some are questioning why bother even going for a pension when you could invest in 'other things'

[aaronjb]

I just checked mine - the final pot would be somewhere in the region of £500,000 in todays terms (£1,000,000 in 'then' terms) with a pension of £19k in todays terms.

Pretty poor, really. Good job I'm planning to kick it at about 60

[tunnie]

Just did a quick calc, on a standard private pension, you would need to save about £600k to be able to retire at 65 with a 28K per year annuity!

Hence why some are questioning why bother even going for a pension when you could invest in 'other things'

Like property?  :-/

Guess if took on a second flat, in 25 years time when that mortgage is paid off, the rent from that, minus any running costs would be money in the bank.

£200k investment in a flat, could yield around £12-14k a year once its paid off

[STMO123]

Teachers pension also carry a life insurance element. Three times annual salary for me to spend if she pegs it during service.

[STMO123]

Oh, and to put in perspective for Tunnie, teachers pay 6.25% of their wages (tax relieved, of course), and the LA pay in another 13%. So, 19.25% of annual salary into the pot.

[tunnie]

Oh, and to put in perspective for Tunnie, teachers pay 6.25% of their wages (tax relieved, of course), and the LA pay in another 13%. So, 19.25% of annual salary into the pot.

Humm thats a fat contribution, looks like i need to up mine. I think I could increase mine to give in 8%, i'm not sure if the company doubles what ever I put in, or just put in 8%  :-/

[albitz]

Oh, and to put in perspective for Tunnie, teachers pay 6.25% of their wages (tax relieved, of course), and the LA pay in another 13%. So, 19.25% of annual salary into the pot.

That is a staggering amount.

[STMO123]

Meanwhile...........comrade Bob Crow was spotted having a champagne lunch in Scotts of Mayfair this week. The bill for him and his four union colleagues came to £650. Not sure if that was paid from his six figure salary or from his generous expenses account. Maybe his members should be asking for a reduction in their union subscriptions.

Or maybe they should continue laughing like fook at LU and the train companies who bow to their every whim. Jealousy is an ugly emotion Albs.
It used to be the haves and the have-nots. Now it's the haves, the have-nots and the bitter onlookers.

Like this:
http://www.bbc.co.uk/news/uk-england-london-13896546