Switching from DB to DC pension scheme
I'm currently enrolled in a DB CARE scheme with my employer, where I pay 6.5% salary in return for 1/100 salary at retirement, plus a lump sum of 3x annual pension.
I've recently discovered they also offer a DC scheme, where I would contribute 6% and the employer contributes 15%(!).
I know DB schemes are rare and the advice is usually not to switch, but in this case it seems my DB pension is comparitively terrible to other DB schemes, and the DC offering is very generous. I estimated that even a 1% real return on the DC scheme would beat out the DB offering.
Any thoughts?
The DC scheme is with Legal & General if that makes any difference.
Posted Nov 10, 2025, 12:01 PM UTC
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