An Agency's View

[malvolio]

Where I am two roles for Technical Architects have been advertised; one paid £46,424-£55,275, the other £55,928-£66,990 both roles get an extra £4k IT supplement, you start on the bottom of the range but each year go up an increment reaching the top in 4 years.

On the pension side of things my 'pot' from working at local authority for 6.5 years is £67k, I don't have my payslips to hand to see what my contribution was, but it wasn't very much in the region of 120 quid or so. I think it's going to yield £4k a year but I could be misreading that.

You may be disappointed. A quarter of a million will give you around £7k a year If properly invested without touching the capital, before tax. Considerably less via an annuity.

[gables]

You may be disappointed. A quarter of a million will give you around £7k a year If properly invested without touching the capital, before tax. Considerably less via an annuity.

That's why I keep looking at the annual statement as it appears to me to say a yearly pension of 4k. I'll dig it out tonight and look again.

[Fred Bloggs]

You may be disappointed. A quarter of a million will give you around £7k a year If properly invested without touching the capital, before tax. Considerably less via an annuity.

it is likely the "pot" is a deferred DB pension from the PS anyway so a drawdown rate or annuity is irrelevant in that case.

[Fred Bloggs]

That's why I keep looking at the annual statement as it appears to me to say a yearly pension of 4k. I'll dig it out tonight and look again.

If the "pot" is a deferred PS final salary pension, file it away and forget all about it till you retire.

[malvolio]

That's why I keep looking at the annual statement as it appears to me to say a yearly pension of 4k. I'll dig it out tonight and look again.

It may do, it depends on the actual original contract, especially if it predates the pensions liberation. I have a small income from a fund I bought years ago when leaving a permanent role. The fund total was a few tens of thousands, but they had promised a pension of £x a month for life which the fund would have supported for about three years. I took their offer.

[Lance]

If the "pot" is a deferred PS final salary pension, file it away and forget all about it till you retire.

in general this is true..... However there are now some emerging opportunities for people with defined benefits pensions to sell them (as they are worth a lot more now than they are likely to be in the future, due to QE and other things). This is quite new and something I heard about from the Radio4 money man (Paul Lewis). So treat with caution as there are likely to be scams around it.

[Andy Hallett]

Completely agree with this ultimately but I'm guessing there will be some hard work needed to find and use them. Working from home and trying to convince yourself you are a 'Janice', sticking yourself on Digital Specialists won't cut it IMO.

You only need your end client to be convinced you are Janice.

[Andy Hallett]

An Agency's View

One word - PENSION

I was looking at permie salaries at one of my PS clients then looking at what they paid in pension contributions depending on your salary it varied from around 16-24%.

And for someone who retires around 60 and lives until they are 90 that isn't enough. Granted some public sector bods die earlier but the people in those types of jobs e.g. manual ones, are either retired or approaching it as those jobs are the ones they contracted out.

Did someone say AWR? Contractors must as a minimum have same all in pay and benefits as a permie.....

[northernladuk]

Did someone say AWR? Contractors must as a minimum have same all in pay and benefits as a permit.....

I'm OK. I opted out of that before I started

[northernladuk]

You only need your end client to be convinced you are Janice.

Absolutely but if the contractor doesn't understand what they are to their client I can't see how they can start to convince their client of anything. Getting it all wrong in front of their client isn't going to make them look very good.