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[quote=Anonymous][quote=Anonymous]Neither of these are going to provide you with a comfortable pension on their own - you will need to supplement with additional savings.

I would do a number of simulations of excel under different assumptions before making a decision.

Does option 1 involve an employee contribution? If so, how much?

In the current low interest/low inflation environment, there is little question that the first option would be preferable.  however, in the situation of the 1980s and 90s option 2 might be somewhat better.

Another key variables is how long you will stay at the company. If it is for a few years and then you will have a long career elsewhere then option 1 will be worth a lot less. If you will spend the rest of your career there, then it is worth less.[/quote]

No employee contribution for Option 1.

I wonder if "a bird in the hand is worth more than two in the bush", i.e. Option 1 is a promise to pay in the future whereas with Option 2 get paid now and it is your money.  It's likely that Option 1 is actually the better payout (should the promise be fulfilled as it stands now).[/quote]

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