You might want to grab a coffee for this one and a biscuit!
Below I have listed two options; working in the police as a PC and going in business.
For simple terms, I have not included any tax.
Also below, I have even given option 1, working as a PC the benefit of the doubt by inflating the pension lump sum and added 30 additional years annual pension payments.
“Let’s say” the pension lump sump would give you £200,000.
To receive that lump sum you would have to work 30+ years of your life for the police service.
Also, I have used the Met’s pay scales for PC’s which we can add up over the years:
£19,971 – Start
£23,124 – 1 year
£24,171 – 2 year
£25,224 – 3 year
£26,277 – 4 year
£28,380 – 5 year
£32,.616 – 6 year
£38,382 – 7 year +
This equals = £218,145 over 7 years.
Then at top whack pay of £38,382 x 23 years = £882,786.
£218,145 + £882,786 = £1,100,931
£1,100,931 + £200,000 (Lump sum) = £1,300,931
Oh and let’s say you retire at 50, and you get £18,000 until you die, let’s say 80 years old.
£18,000 x 30 = £540,000
Still with me? Good! Now, let’s add all this up!
Total earning potential as a PC = £1,840,931
(If you were to rank up to Sgt or Insp, it isn’t that much better due to TAX)
Now to receive all that you would have to commit 30 years of your life with the following:
– Cancelled rest days.
– putting your life on the line.
– Developing bad mental health.
– Missing time with family.
– Low income
– Not feeling valued.
– No financial control
– No control over career
And so on.
Now Option 2:
You go into business,
Let’s say you hit £100,000 on year 1 of being in business. As you know all very achievable, seeing as “some cops” on our cohorts achieve this.
£100,000 x 30 years = £3,000,000 earning potential.
I am going to stop here.
As you can see, even with 30 years extra with option 1 of £18,0000 pension per year until you’re 80 years old AND an optimistic pension lump sum of £200,000 you are still worse off.
With option 2, I have not even included any business growth!
With option 2 you have the additional benefits too:
– Family time
– No increased risk of death on duty
– Control of your life
– Financial control – No concern about pension dilution.
– Control of your investments – (This again could way out your pension)
– Highly rewarded
– Leave a legacy when you die
The point is this:
If you’re are staying in a job because of the pension, you are missing a lot of opportunities elsewhere by being your own boss in business without having to sacrifice so much by being in the job.
Never confuse the amount on your wage slip with the amount of value you have as an ex or serving Police Officer.
You have remarkable skill sets that can be transferred into your own business, to serve the world in a different way that allows you to be paid your worth.
Life does not begin at retirement.
Life is happening right NOW.
So live it. You don’t get a second chance.