Page 6 | Why does everyone say that the civil service is low-paid?

YourPoisedFinch · 2025-02-20T13:10:52+00:00

friend in big 4 audit-- 32k to 50k in 3 years friend in civil service, as a statistician --- 33k to 55k in 3 years on fast stream

cucumber4745 · 03/04/2026 22:52

YourPoisedFinch · 21/02/2025 11:25

with pensions , the civil service pays more... i was on 32k at big 4, 6% pension, a heo in london is on 35k plus 28% pension

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28% pension in the CS alpha means nothings. It is defined benefit scheme and not defined contribution scheme. The 28% is given as representative of what the pension costs the CS assuming average lenght of service for a typical Civil Servant, not how much they pay in the pension.

It is one of the few defined benefit pensions around, and is a good scheme, but what you and a lot of people are missing is that for it to be worth it you need to work in the CS for solid 15-20 years + and usually wait until the state pension age as early retirement may waste half of its value.

You don’t get 28% put in your pension pot like a contribution scheme you accrue 2.32% a year plus whatever inflation rate Government sets. This benefit is guaranteed after two years in the scheme.

Wibblywobblybobbly · 03/04/2026 23:52

cucumber4745 · 03/04/2026 22:52

28% pension in the CS alpha means nothings. It is defined benefit scheme and not defined contribution scheme. The 28% is given as representative of what the pension costs the CS assuming average lenght of service for a typical Civil Servant, not how much they pay in the pension.

It is one of the few defined benefit pensions around, and is a good scheme, but what you and a lot of people are missing is that for it to be worth it you need to work in the CS for solid 15-20 years + and usually wait until the state pension age as early retirement may waste half of its value.

You don’t get 28% put in your pension pot like a contribution scheme you accrue 2.32% a year plus whatever inflation rate Government sets. This benefit is guaranteed after two years in the scheme.

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It's still more valuable year on year than a DC pension though. It doesn't only become more valuable at 15 years plus. And early retirement is also an issue for DC. If you draw that early or buy an annuity before normal pension age, that will also reduce the pension you receive. It is a hugely valuable benefit compared to DC.

cucumber4745 · 04/04/2026 00:10

Wibblywobblybobbly · 03/04/2026 23:52

It's still more valuable year on year than a DC pension though. It doesn't only become more valuable at 15 years plus. And early retirement is also an issue for DC. If you draw that early or buy an annuity before normal pension age, that will also reduce the pension you receive. It is a hugely valuable benefit compared to DC.

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I agree, my point is that for someone relatively younger in their early 20s, it may not be worth spending 10+ years in CS on a low pay to build the gold standard pension. They could achieve similar pensions in private sector due to much higher salaries. For someone on 30k, it will take at least 5 years to accrue £500 a month benefit, which won’t be worth much in 30-40 years. My understanding, which may be wrong is that once you leave the CS your pension is no longer uprated with inflation until you claim. Again, I might be wrong, but if that is the case a defined contribution scheme can surpass it given any contribution you have made before continues to grow in line with the fund investment return (although it could go down).

yoursweetpotatoesarebland · 04/04/2026 00:37

FurAll · 20/02/2025 15:14

I am a Grade 7. I jumped through hoops to get where I am: 4 years of exams. I started as an AO. I earn more than £65k but my dept pays well. Quite a few of my colleagues complete the training and move over to the private sector as it pays a lot more.

TSP?

Wibblywobblybobbly · 04/04/2026 01:08

cucumber4745 · 04/04/2026 00:10

I agree, my point is that for someone relatively younger in their early 20s, it may not be worth spending 10+ years in CS on a low pay to build the gold standard pension. They could achieve similar pensions in private sector due to much higher salaries. For someone on 30k, it will take at least 5 years to accrue £500 a month benefit, which won’t be worth much in 30-40 years. My understanding, which may be wrong is that once you leave the CS your pension is no longer uprated with inflation until you claim. Again, I might be wrong, but if that is the case a defined contribution scheme can surpass it given any contribution you have made before continues to grow in line with the fund investment return (although it could go down).

Edited

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They are revalued in deferment by reference to uncapped CPI. So to take your example, their £500 a month benefit will be increased each year by reference to CPI so that it has the same real value when it's drawn.