Private Sector Employment - Reasonable Pension Deal?

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MangoJoe

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Hi All,

Looking for some feedback please, I'm hoping to change job in the next couple of months and one of the benefits I'm curious about is the quality of pension I should seek up front - Or at least some idea or guideline on what constitutes a good pension deal from an Employer?

I'm IT Management in the private sector. I appreciate that this might be too much of an open-ended question. But at the very least if people gave a general guideline it would be very helpful.

I'm just trying to inform myself in advance so I hopefully make the correct decision or indeed if I seek to negotiate a better deal.

Many thanks.
 
In my shortish experience of the last 20 years, the best deal I had was employer 7% and employee 5%. One had employer 6% and employee 4% but the others were 5 and 5. All were dependent on employee actually contributing their part of the bargain.
 
Depends on the sector / employer.
At your level 6% should be minimum.
8% plus if you go consulting with larger firms.
11% plus matched of 4% (15% employer total) available in some places.

Typically a company that has older employees on defined benefit pensions will have the higher DC contributions.

I've been on all of the above, so there's a big variety.

Death in service is standard some places; 4 times salary plus 8 times to create an annuity for dependent children.
 
There is a massive variation of pension contributions and you have to look at it as part of your overall package. I have seen small companies offer 13% and large, global companies offering 5%. But those large companies also offer share options to their employees. Or they may pay a higher salary and let you take care of your own retirement planning.

Bigger companies tend to offer pension, death in service and income protection. But then, you may not like the politics and stuff that goes on in a large organisation and prefer a smaller company where things get done quicker and without forms having to be filled out for everything...



Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
I've moved around a bit due to redundancy. I've seen 5%, 10%, 7%,14% and 0% er contribution. It really varies. I've never really seen it negotiated, like healthcare it's generally a standard rate for all employees, even very senior, but obviously worth more on a higher salary.
 
Yes I haven’t seen it negotiated but I’ve seen the waiting period waived.
 
My experience is that major IT multinationals will provide a range of options for pensions, thus you can increase or decrease yours and the employer payments and the difference is added or subtracted from your core salary. In effect, it gives you control and flexibiltity.
 
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