Defined contribution / defined benefit pension - advantages

[quinno]

Hi guys

Look at changing jobs, got a job offer with a state body. Main perk (according to the offer letter) is the pension - it is a defined benefit scheme. Understand the basics, must admit I'm not well up on pensions (don't have one now, so going to one start anyway). Anyone any knowledge if they're all their cracked up to be? Salary on offer is not great (maybe less than I expected, but marginally more then I'm earning now, there's a few other perks thrown in), but the main selling point seems to be the pension. It is a 3-5 year contarct - any issues to kook out for pension-wise (portability if I move on?)

Thanks

Quinno

 

[legend99]

3 years worth of a defined benefit scheme I'd imagine would not be the making or breaking of your pension. you would need 40 years for the full benefit.

 

[Slim]

Hi Quinno

If you accept a contract for more than 2 yrs you will be enrolled in the superannuation scheme. As Legend99 points out, a superann scheme pension of 3-5 yrs will not be much at all. If your contact is not renewed, you will have to find a private pension anyway or get a state job.

Slim