How much is a defined benefit pension worth?

D

Deano

Registered User
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Hi

I’m just trying to weigh up my options as I am looking to change job. My current employer offers a defined benefit pension of 40/60ths of final pay (minus state pension) and I pay 6% of my salary into the pension fund. My new employer pays 7.5% of my salary into a PRSA.

Is there any way of working out how much I would have to pay into the PRSA to make the new pension comparable with the old one? Just for example, say that I am 30 and looking to retire at 60 with a salary of €50k.

Any advice greatly appreciated!!
 
Did you look at the pension calculator on the Pensions Board website? This will give you a reference point in terms of funding required to target your desired level of benefit.
 
Off top of my head I would say that DB Plan is costing company about 15% to 18% of your salary - so that is what you should look for from new employer if you want to "match it".
 
Deano is your current db scheme indexed in any way? Are there other benefits associtated with the current scheme ie Death in Service, Childrens and Spouses etc?
 
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