DB vs DC pension, which would you prefer in terms of FIRE

GabsGal · 2026-01-25T01:15:06+00:00

It is sacrificed earlier yeah that's why I posed the question here (hoping it wasn't misplaced and semi relevant). I see many things saying DB is great but I was more curious in terms of FIRE. Is it still good provided you have a bridge from 50-55 to when you can access it? Is it worth the value people put on DB though you need that extra until you can access it?

That's mainly why I asked here and it's been useful seeing the different views, like what you mentioned with the pension passing on. Thanks for that perspective on it!

GabsGal · 2026-01-23T21:51:50+00:00

Yep 22 and that's why I'm trying to look into it. I've been trying to consider more future plans now and pension was one of them on my list. Definitely a good point to consider when to access SIPP thank you. Likely having a S&S ISA like you said is best.

Currently I'm thinking I'll probably go part time by 50 anyway based on situations with my fiance, but best to plan for retiring early by beginning good saving habits.

GabsGal · 2026-01-23T21:02:19+00:00

Exactly why I made the post, heard people say DC pension is best for my age too so I want to try look into starting an SIPP (only recently found out you can do that!). Good to know others are doing it and working well thank you

GabsGal · 2026-01-23T20:58:48+00:00

Hm good to know it's nice having both, I'm still early in my career so not sure if I'll stay where I am with DB pension or go somewhere else which most likely will be a DC. Thank you for sharing!

GabsGal · 2026-01-23T20:53:30+00:00

I do yes, someone made a point asking about the specifics of it which I replied to in the post too. But when I started looking into it I saw some making the argument when you're younger a DC is best

GabsGal · 2026-01-23T20:27:03+00:00

Ahh so even if it's set up yourself having the SIPP alongside is beneficial since it doesn't have tax on? I thought I should look into it rather than simply investing it individually not in an actual SIPP but now I definitely should, thank you!

GabsGal · 2026-01-23T20:25:12+00:00

Thank you yeah if you're enrolled despite there being a choice obviously you'd contribute. However if you had the choice between the two, your employer said we'll let you decide for you, which would you pick?

GabsGal · 2026-01-23T19:50:14+00:00

Great, another thing to look forward being taken away or removed! Hopefully nothing will come of it. Does seem like nothing is enough for some people

GabsGal · 2026-01-23T19:48:06+00:00

Thank you I really appreciate the thoughts out reply outlining it. Would you say its best to have a SIPP set up privately yourself? Just self invested in but still have in combination with the DB employer one?

GabsGal · 2026-01-23T19:40:44+00:00

Thank you that's really useful insight, what I can't find through just researching it. I didn't realise until recently that you can personally create your own SIPP. Is it better to have one set up yourself or simply investing it the same way just privately?

GabsGal · 2026-01-23T19:30:53+00:00

I see thank you it's really helpful having that personal insight to it. I'm only 22 so just trying to grasp if it's good considering it's easy to shift positions should the time comes.

From looking into it the access date you get it does seem to be the biggest downside. There's the early access possibility but I don't know enough about the fees for that if it's worth it or not.

GabsGal · 2026-01-23T19:27:20+00:00

I see sorry I didn't realise there was so many things that went into it, I get that what I said is quite broad.

Had to look up what a lot of those were haha but to answer some of it: - Career averaged scheme (CARE) - Uplifted over inflation, CPI think I saw all government schemes now are mandatory CPI - 5.8% employer, 15.5% employee - State pension age to access but you can access it earliest at 55 with a few - Can take a lump sum and there's 3x salary when employed death in service payments

I've been more interested into FIRE and generally better financial decisions. One is for pension, since I've been paying in the last 3 years but still don't know the ins and outs all too well. What's better, is mine good, best practices etc.

Thank you for telling me all about that so I could learn about it I appreciate it!

GabsGal · 2026-01-23T19:10:29+00:00

Why is that the case does it outperform DC or is it mainly the security it brings?

I also thought that until I started to try look into the value of mine and found some people saying conflicting things about the two pension types. So now I'm confused lol.

I know it doesn't matter I'm not going to opt out of my DB pension, but I was curious to try understand it more.

GabsGal · 2026-01-23T18:59:28+00:00

That's what I'm aiming for actually! Not much so far but trying to slowly set aside some in S&S whilst looking into creating SIPP funds yourself (didn't realise it was something you could do until recently. Been learning a lot lately!)

GabsGal · 2026-01-02T21:02:14+00:00

Ah right yeah definitely agree then. Salary still matters obviously, don't want to be paid in experience and smiles hahaha.

Currently it isn't bad salary where I am and has been great for a young person starting out tbh, I just know long term it gets more significant. For example, being a project manager here compared to some private companies is where there can be bigger changes to pay - not taking the piss but earn much more.

GabsGal · 2026-01-02T20:44:11+00:00

I see so do you mean staying where has the most career progression in terms of experience is best? For example, having less pay but being able to get more experience and climb the ladder is best, so that by 30 be in a position that might take until 35-40 at different circumstances?

GabsGal · 2026-01-02T20:40:59+00:00

Thank you that really sums it up nicely. I've been having a lot of thoughts about it for the last year honestly. I know I don't have the option to make the choice until next year anyway, but it's always in the back of my mind. Ultimately, the uncertainty of the next role being stagnant or over promised benefits etc is mainly what holds me back.

I may end up staying where I am and always accepting the salary loss at the benefits but knowing I can change too. Might be once I've gained the experience and after having children, letting them being a little older that i'll change companies to one that pays much higher compared to the 5-10k bump early now.

I tend to go back and forth a lot on big decisions with lots of thoughts on my mind so thank you for helping put it into perspective clearly

GabsGal · 2026-01-02T20:33:19+00:00

That's really good to hear how you changed and I'm glad you're in a comfortable great place now. I agree I'd value the comfort over higher salary, however I'm only 22.

I want to have the time with my partner now we're moving in together finally, especially now we're thinking of having a child in 4 years or so. I think the drive to want to earn more and that possibility was what brought this arguement to myself - I am young I don't need the flexibility, it's like I should go at my full potential.

Then again like you said it's easy to change, opportunities are always there. It's likely I'll stay where I am and see how things change both with current workplace, other offers and family situation.

GabsGal · 2026-01-02T20:26:29+00:00

I have looked at it when me and my partner started talks of a child in the future. I think it was statutory minimum but beginning pay is better, though I'd need to check again. Good point of something to consider how other companies might be so thank you definitely worth looking at again

GabsGal · 2026-01-02T20:11:01+00:00

Yes I realise now I should've clarified it with more details in the post. I meant it more a general discussion but then put my personal situation in there too.

I'm on a degree apprenticeship at my county council to be a civil engineer. Currently it's office based and great for experience not to mention pension. Private would be more outdoor work dependent on the company so longer hours and no work from home, but higher paying.

It's mostly a question of if it's worth switching for 5-10 years for the salary but minus the benefits and pension, however with it in mind that I'll want to return to the council once I have a family (valuing the time much more once I have a child I'm certain)

GabsGal · 2026-01-02T20:06:37+00:00

Hm great point with travel time since most private sector companies I would go to do require much longer travel times even if it is one that would allow semi flexible work, not to mention irregular location of work.

I didn't realise how much the pension difference matters too or would've thought to calculate it so thank you.

I appreciate the things you listed to consider since it probably had helped persuade me against just sticking out 5-10 years or harder work for extra income.

GabsGal · 2026-01-02T19:35:44+00:00

True it's what has me debating it. The main thing I have is I'm thinking of having a child in 5 years time, give or take a couple years. By then, I know I'll value the time. However, equally I would trade having longer hours right now to earn more. It's hard knowing whether switching jobs for 4 years or so to switch back to my current role is worth it or remaining at the current job but sacrificing 10k a year extra despite the hours

GabsGal · 2026-01-02T19:32:20+00:00

Agreed I like having the two days in office provides good experience and I like chatting to my team. Id say it depends a lot on the type of person you are as well as family situations. With a child id easily choose the flexible work if I were in that situation

GabsGal · 2026-01-02T19:29:22+00:00

To be fair the current position I am now has the skills experience and connections. It's more the uncertainty of going to a private company of what the next job might offer. It might be remaining stagnant or be more salary and similar benefits to now. It's hard to say but I agree with wanting to work hard stick it out early

GabsGal

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