Pensions CETV - NHS vs private companies

[TrickyExHelp]

Hi - I work for the nhs and have received my pension cetv. It comes in at just over £250,000. For context, I’ve worked full-time and paid into the pension for 25yrs . My exh has worked full-time at different private companies (no breaks between jobs) for the same length of time and has paid into his pensions for all that time. However, he earns at least £20,000 more a year than me.

i keep hearing that public sector pensions are much bigger than private ones. Is this true? Is my pension likely to be significantly larger than his even though he earns a lot more than me?

thanks

Quite possibly yes, especially as employer contributions will generally be higher from nhs as well as the fact it’s defined benefit whereas private one likely to be defined contribution

Probably - but is does depend on what percentage he has chosen to pay into his pension.

public sector pensions are much bigger than private ones.

Public pensions tend to be 'defined benefit' so that you can be sure of what pension you receive and how it will increase in future.

The 'value' of the pot is only notional and really irrelevant because you are guaranteed to receive the promised pension.

A private pension will build up as a pot of money but what you receive will depend on how it is invested. If it's all in risky shares its value could drop significantly, if it's invested in safe things then the pot might not grow very fast. In any case it could run out and you be left without funds.

The public pension is thus very very different.

Hi, I have been through a similar thing and worked for the NHS for 25 years also. I was told that the NHS CETVs are always valued lower. As its a final salary pension they really have no idea how long you will live for anyway, because it pays out till you die. However they still have to use this valuation in divorce or they can ask you both to pay for a pension actuary to work it out properly but these can be expensive. Luckily my ex husband didn't go for my pension in the end.

Thanks for everyone who has answered!

I’m also NHS and my ex a fireman and they encouraged me to seek a pensions experts advice on settlement as public service pensions can often have hidden benefits that affect the overall outcome. I was quoted £2k for this service which would have been a split cost.

As PP said, having some idea what your employer has paid in will help. So DH and I pay in similar amounts but my employer (private sector) pays in 8% whereas his (teacher) pays about 24%…

Does anyone have any figures for the difference between a CETV and an actuary figure for a public service pension?

And I believe the time to get the actuary statement is a long wait.

Quoted 3 months for the CETV!