A defined benefit pension is supposed to be a big plus when starting a new job. At what point does it actually become a drawback? I have been given the option of withdrawing from a db pension at work. The fund is less than 60% funded. Employee contributions are 12% of pensionable salary. The employer is making a large contribution also. When liabilities for existing pensioners (who have first call on funds) are accounted for the remainder is only 43% funded. As I have little invested in this scheme am I mad to start throwing money in to make up the shortfall? Would I be better off with a prsa despite the charges, where at least I have some control? I am 34 and have a good sized AVC fund also.
thanks for opinions.
thanks for opinions.