Better salary and position or better pension

[Foreverundecided]

Hoping to get some insights on a job choice I'm faced with
So after taking a few years out of work to focus on my young DC I decided it was time to return to my career and I've ended up with two job offers

Firstly both are good jobs in the profession in which i am qualified in and both flexible mainly working from home

The first job is in the private sector and is actually a promotion from where I left off , this job is better pay
It's flexible and it sounds like a exciting opportunity to make some big changes
They seemed really excited by my previous experience and want me to come in and make some big changes which really excites me
The salary for this job is just over 60k

The second job is a area of the civil service
It's actually a backwards step in terms of position however pay is roughly the same what I earned before I took my break
It is in a interesting area however they've been quite vague about what I will actually be doing
Obivously the benefit here is the defined benefit pension scheme , it's alpha for any one who knows about it
The salary for this job is 53k

Benefits to the first job are the better salary plus they offer a good bonus scheme
I'd be in a slighter higher position than pre kids and the position I was actually looking to step into previously
I'd report directly to the Director and it's a massive company so lots of room to progress
The area is similar to the area I worked in pre kids and I think I could make massive improvements

The second job has the amazing pension however I'd be a step back and previously in said position also in a government funded organisation not civil service I was often reminded of the hierarchy and put in my place and felt I couldn't do the job to the best of my ability due to this , I worry it could be similar
However this might not be the case at all

Also the first job have had me in to meet the team and to their Christmas night out and seem excited to have me

The civil service job sent me a generic offer and told me they don't know who I will be reporting to as they are off sick and no further communication

It's also worthwhile to note I'm 31 so quite a while away from retiring

Thanks in advance

I have retired early and I can because I have a defined benefits pension so left at 55. I did take this out age 21. I cannot begin to tell you how very different mine and some of my friends lives are now at this age. The ones who do not have good pension provision will work till they are state pension age. One of the reasons this early retirement came about for DH and I though he is younger than me so has to wait three more years is we had some friends die. For our ages DH and I are very healthy but we have slowed down compared to when we met in our twenties so we want to enjoy retirement together. Seeing friends not even make it past their fifties was sobering.

The first job sounds like the better job if honest but thats my honest opinion on the benefit of a defined benefits pension.

First job.

But other factors come into play - commute, holiday, flexible working, other benefits (gym, healthcare etc).

I understand your dilemma.
There is a lot to be said for a defined salary pension. BUT I think you will be bored at Civil Service job. The other opening looks exciting, pays more and you believe better prospects. Why not start a private pension with the £7K extra salary per year?

What do the first company do for pension contributions? What if you choose to put 12 % salary into their scheme would they match or do up to 10%? The first job certainly sounds like you'll enjoy it more!

The private sector job sounds more interesting but that could also come with more pressure/stress and potentially more expectation to work longer hours. The civil service job sounds more boring but is likely to come with more flexibility.

You don’t say how old your DC are but if they’re still fairly young consider how a higher pressure job might work round family life. If they’re a bit older this is less of a concern (and you might decide that the interest level of job 1 outweighs any inconvenience anyway).

But I agree with the previous poster - if you do take job 1 use the higher salary to pay as much as possible into the pension.

@RolyPolyFishHead thank you for your honesty , yes I think the first job sounds better but the defined benefit pension is very appealing although I have no idea if I could stay at the job for long if it's wasn't interesting challenging or progression wasn't there

@Bankholidayhelp the first job is a very easy commute and they've said they'd never expect me in more than once a week
Private health care , flexible hours too plus quite a few other company perks

Second job it's a train ride into a city I don't particularly like and they've said two days in the office unless a reason that doesn't work
Don't really know how that goes in practice as I've only spoke to hiring manager who isn't someone I'll be working with or who has even been to the office i'll be based

@Froniga yes that's my worry that it won't challenge me and not as much scope for movement
That is one thing I've been playing about with

@WaitingForSunnyDays as standard they contribute 9.6% , I haven't enquired but I do have time to find out before making a decision

You sound like you want the first job, so that’s what you should probably do. However, once you are in position at the
CS in time there will be room for progression and it’s difficult to get into. Don’t underestimate the pension long term.

9.6 is pretty good - to me the negatives of the second one would outweigh the pension I think.

The civil service pension is very good (it would make the total package worth about +£80k), so 9.6% from private sector company is good, but still quite a bit lower.

I wouldn't read too much into the generic offer vs being 'wooed' by the private sector company. The CS recruitment process may be impersonal, but that is unrelated to how you're treated when you join. And the private sector do 'woo' new starters to get them in the door - again, it doesn't necessarily mean they will treat you better once you're there. When private sector companies take an interest in me they take me out to lunch and tell me about their growth plans etc, but I'm under no illusion that I would get special treatment once I've signed a contract (I've worked in both public and private, so plenty of experience to base this on).

So I guess it comes down to your level of excitement about/interest in the the role itself. It sounds like you're really keen on the private sector role to me, which would swing it in favour of that.

@ChessieFL we have 4 DC ranging from 6 to 3 so very young and very close age gaps so yes the pressure element is somethin to considered
However we've got great support in terms of childcare

The original plan was to wait until they all started school but firstly I missed work secondly the longer I was away the more I worried about finding it hard to return

From what they first job have said there is others with young children and they are open to working hours around the kids etc

But of course what they say and how these things are once you start can differ substantially

I'd vote for first job, but I understand why you can't choose between them.

There's no wrong choice really

@TarantinoIsAMisogynist 9.6% for the private company contributions

And I'm probably more interested in the private sector job but then it might be because I know more about it and they've been more trying to get me in the door

I almost wish I didn't have the options as if I'd only got one out of either of the jobs I'd of been happy and probably ended my search

First job and make AVCs

Second job it's a train ride into a city I don't particularly like and they've said two days in the office unless a reason that doesn't work
Don't really know how that goes in practice

I can give some insight on this, based on being a current civil servant. The Cabinet Office has mandated 60% attendance across the civil service, and it is being enforced. Some organisations may still be doing 40%, but it is likely to go up based on the central direction of travel.

When they say "unless there is a reason that doesn't work", they don't mean unless it is inconvenient for you. They mean that exceptions would be made on specific days in the event of transport strikes, weather events that prevent travel, or covid/sickness where you are infectious but well enough to work.

This. Job one will progress you further

@TarantinoIsAMisogynist thank you that's very useful to know

The company I left prior to maternity is government funded although not civil service however I know they are currently going in the same direction I have a friend returning from maternity and she was told to apply for flexible working if she wanted to be in the office less

Also I found the company I was in prior to be quite regimented in certain rules all in the interest of being fair across the board but sometimes in practice it didn't work

In all honesty the commute to the city is awful and I can't say I'm fond of the location which is a consideration if I'm to spend quite a bit of time there

Job one.

As pp mentioned you can make additional voluntary contributions (avcs) to your pension, and as you progress up the ladder you can invest more into your pension as a tax saving opportunity.

Don't underestimate the value of a flexible role/supportive company as working parent. Being close to home vs a commute away is also important, especially if there is an emergency at school (and not like trains have been particularly reliant with all the strikes, and in bad weather, services can be impacted too...)

Nearly 10% company contributions are high, could be a lot worse, we’ve had 3% the last few years / companies my partner has worked at. I would take the first job but put what you can into your pension via salary sacrifice to boost it up as it’ll be tax / NI free. Also might be beneficial to get down to the child benefit threshold if your household is still eligible (but obvs bonus is included in your total gross Income per year as well). (But I don’t have civil service experience so this is just my experience from the private sector. flexible, WFH, good bonuses and annual pay rises :))

I would choose Job 1. It sounds more exciting. And financially you will do well even if the pension isn't quite as solid.
I used to love getting a bonus when I worked in the private sector. I think you will make good money in job 1 and the progression can be quick and lucrative. You can make additional contributions to your pension as and when you can afford it.

Yes on the bonus! I receive one and this is great for holidays, renovations around the house etc

And many private companies that my friends work for contribute bare minimum to the pensions, so yes, job one contribution is very generous

Take the job you want and start your own private pension too. I've always had my own pension and a company pension.

Definitely take the job that gives you the flexibility you need while your kids are young. This doesn't have to be your forever job (and probably won't be) so pay into your own pension alongside the company pension. And when you leave roll it all into one and keep going...

I would go for the private one. Reading what you've written it seems to excite you far more than the civil service job which you seem to think i a backwards move and are describing it in cautious terms.
Pension of 9.6% is very good. You could always consider a higher personal contribution to take your salary below 50k for child benefit if it suits the family (no mention of DH earnings) Sounds more flexible for getting there and less requirement to be in the office, sounds welcoming and friendly. Position is better, pay is better & bonus. I would be considering chucking bonus into pension perhaps? Some of these private co bonuses are excellent - I used to sometimes get 25% of salary from one company.

Seems a good stepping stone. Next move maybe consider civil service at a higher level, having used this post to skip a level or two, or three?

Agree with PP, first job but will also add that your earnings might be capped in the public sector or not keep aligned with inflation while private sector has more flexibility. You should consider future earnings potential as well as the current packages on offer.

Also UK productivity per capita has been falling since 1997. The UK is in decline. This is controversial but I wouldn't commit myself to be dependent on a government run pension in 30 years time over managing my own scheme for the future.

You're 31 - go for the job that excites you.