Final Salary Pensions - Who's Got One?

[GuestHouse]

I'm not sure if this is relevent to anyone else except UK members who have pensions from or in the UK.

I'm just wondering who here has a final salary pension, you know the ones, your pension will be a percentage of your final salary (Usually to a maximum of 2/3rds).

I have three (Two that I dropped out of but left the fund active) and the one I'm in now.

But such schemes are under threat in the UK and current opinion among finacial advisors suggests that nearly all will have closed within the next five years.

[billd766]

I'm not sure if this is relevent to anyone else except UK members who have pensions from or in the UK.

I'm just wondering who here has a final salary pension, you know the ones, your pension will be a percentage of your final salary (Usually to a maximum of 2/3rds).

I have three (Two that I dropped out of but left the fund active) and the one I'm in now.

But such schemes are under threat in the UK and current opinion among finacial advisors suggests that nearly all will have closed within the next five years.

Well I have a military pension and also a company pension and they both go up a small amount every year and in just over 3 years I will get the UK state married pension, but I don't think I will be entitled to a heating allowance for some odd reason.

[Carmine6]

I'm not sure if this is relevent to anyone else except UK members who have pensions from or in the UK.

I'm just wondering who here has a final salary pension, you know the ones, your pension will be a percentage of your final salary (Usually to a maximum of 2/3rds).

I have three (Two that I dropped out of but left the fund active) and the one I'm in now.

But such schemes are under threat in the UK and current opinion among finacial advisors suggests that nearly all will have closed within the next five years.

They're under threat in the US too since they're expensive to fund. The Pension Benefit Guaranty Corporation (PBGC), which insures these plans, got stuck with a few too many pension funds from bankrupt companies and lots of retirees will get much less than they were promised. Many airline pilots who would have gotten maybe $90,000/yr under the plan are now stuck with the PBGC max of much less than that. Can't remember the figure, but maybe $45,000/yr.

Earned enough credits at my last job to net about $350/month in today's dollars. I'm way more statisfied with that company's and prior employer's 401K plans which I rolled over to a brokerage. Its all my risk if I don't choose good investments, but the flip side is whatever is left goes to my heirs if I die. Plus if I am diagnosed with something fatal tomorrow, I can use it all. My dad had a fantastic pension, but died only a few years into it.

[Cassandra]

I'm not sure if this is relevent to anyone else except UK members who have pensions from or in the UK.

I'm just wondering who here has a final salary pension, you know the ones, your pension will be a percentage of your final salary (Usually to a maximum of 2/3rds).

I have three (Two that I dropped out of but left the fund active) and the one I'm in now.

But such schemes are under threat in the UK and current opinion among finacial advisors suggests that nearly all will have closed within the next five years.

My impression is that the vast majority of these schemes have already been closed to new entrants who will instead enter a money purchase scheme.Its worth making the point that there is no threat to those currently receiving pensions under final salary schemes, unless of course the fund cannot meet its obligations.Those who have just become pensioners aged 60 under a final salary scheme are very lucky boys.It all looks a lot grimmer for the younger generation.

[TBWG]

[Well I have a military pension and also a company pension and they both go up a small amount every year and in just over 3 years I will get the UK state married pension, but I don't think I will be entitled to a heating allowance for some odd reason.

Hi Billd766

Have just finished reading an article in Times financial section which says "While you are sunning yourself on a foreign beach you can still receive the winter fuel payment. Contact the DWP on 029 2042 8635 to find out how to qualify"

DWP = Dept work & Pensions

The article was about a woman in her 60's selling up and travelling the World for a few years, so no place of residence in UK.

TBWG

[billd766]

[Well I have a military pension and also a company pension and they both go up a small amount every year and in just over 3 years I will get the UK state married pension, but I don't think I will be entitled to a heating allowance for some odd reason.

Hi Billd766

Have just finished reading an article in Times financial section which says "While you are sunning yourself on a foreign beach you can still receive the winter fuel payment. Contact the DWP on 029 2042 8635 to find out how to qualify"

DWP = Dept work & Pensions

The article was about a woman in her 60's selling up and travelling the World for a few years, so no place of residence in UK.

TBWG

Thanks TBWG I will look that article up and see what it is all about.

Now I wonder if I can claim child benefit as well?

[jbaldwin]

I retired three years ago at 37. I have 8 years of final salary benfits so I will get 8/60 plus inflation of my leaving salary when I am 60. My employer closed the final salary scheme to new employees (but not existing employees) in around 2000.

[richard10365]

I have a military pension from the USA. As long as the USA dosen't fold, I think I am ok. So I am hoping they last until I die.

After that, I don't really care.

[caledonia]

There are some places in UK that still do them but they are fading fast. I work for Local Government so luckily we still have them but when I worked for some of the large financial insurers etc they always had them. In fact at one stage they were Final Salary with no contributions from the employee - now those were happy days. Think they have all nipped that in the bud sadly!!