Changing jobs - Moving from a DB to a DC Pension

[Nov Investor]

Looking to change jobs, which would mean changing pension, would have a Db pension of about 20K earned up from current employer, so will ring fence that one.

What I would like to get some help around would be how much more in salary would I need to target so as not to lose out

Current Salary 60K Extra's would bring it up to 75K pa

Moving to a job that has a DC, would mean I would have to contribute a substantial amount myself.

I am planning to see a penions person, but would like to get some idea's if possible before then, or things I should watch out for.

 

[Guest126]

Re: Changing jobs - Moving from a DC from a DB Pension

Hi there, a few ideas:

• Calculate what pension you would get if you stayed in the Defined Benefit to retirement
• Compare this with what you will get if you join the new company scheme and ring-fence your Defined Benefit
• Presumably the new arrangement will show shortfall compared to if you had stayed in Defined Benefit Plan
• Caulculate what percentage of your new company salary you will need to contribute in AVC to "bridge the gap"
• This % is the extra bit that you need to provide for in your new company so you should get this as "extra salary" if you like to make up for your pension disadvantage by moving
• This is a "rough and ready" check - but it is a start, and gives you an early feel for numbers
• Obviously there are many other issues to consider as well (such as fund choice, security of your old DB scheme, % contribution by your new employer to your new company scheme...to name just a few)

 

[ajapale]

Re: Changing jobs - Moving from a DC from a DB Pension

Hi Nov Inv,

Ive changed your title from "Changing jobs - Moving from a DC from a DB Pension" to "Changing jobs - Moving from a DB to a DC Pension" which is what I assume you meant.