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Retire sensibly – avoid public sector pension schemes

Retire sensibly – avoid public sector pension schemes
Want to shift your public sector pension to a Self Invested Personal Pension (SIPP)? Here we offer retirement savings ideas for public sector employees.

There is plenty to entice public sector employees into their workplace pension scheme. A generous employer contribution is certainly high up on the list. calls it a “no brainer” – why wouldn’t you chose your employer run pension when they are contributing to your pension as well? It’s a fair point. Most public sector pension providers match your contributions at the very least.

But anyone on a defined benefit pension scheme (which is most in the public sector) should be aware that they will not see either their own or their employers contribution. Their pension will be used immediately to pay current retiree salaries. Their own retirement salary is determined by their average annual salary over their working career and will be paid by future public sector employees.

But then there’s also the fact that ‘opting out’ is a bit of a chore – when everyone starts their job (whether that’s in the private…

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