Leaving a job with a DB Scheme

mik_da_man

Registered User
Messages
270
So I'm currently thinking of moving jobs.
My current job has a DB scheme which I am a member of for the last 5 years, I'm 34 now.
The new position has a DC scheme with decent contributions from the employer.

However talking to a few people they are saying not to ignore the value of the DB scheme and it should be a large factor in my decision. I know the differences in the schemes and am trying to put a notional value on the DB Vs DC scheme, difficult I know with the nature of investments in DC schemes bu I may use it as a bargaining tool in the new role.

Any advise on what it's really worth, given the duration of my service and age till retirement?

And if I do decide to leave should I leave the current funds in the DB and get the deferred benefit? From my research taking the money out of a DB generally is not the best idea as the deferred payments will likely be better than any investment.

The job I'm in now is good, I was basically headhunted for the new role and I wasn't too pushed on it at the beginning. I'm leaning towards it now, but just want to ensure I don't make an error of judgement on the value of the DB that I may regret in the future.
 
NOT my area so what follows is just based on person experience.
1: 5 years in a DB at 34 is not a lot.
2: your current employer can shut, etc the existing DB at any time
3 as a deferred member re the DB pension pot , your benefit can be hit if your current employer decides to amend the terms: this does not happen to pensioners unless it fold up
4: the DC, while it shoves all the investment risk onto you gives you more control in my limited opinion.
5: I would not for a moment base a career opportunity on 5 years in a DB at 34, not for a moment!
HTH
 
Back
Top