Airline pension schemes for cabin crew compared: what the legacy carriers give, what the low cost and Gulf carriers do not, and how to think about it at 25
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#1 SAS Copenhagen, and the pension gap thread on here is from an ex crew who wishes she had thought about it. This is the version for the crew who are 25 and can still do something: what the different airline types actually provide, and how to think about it without becoming an accountant.
Legacy European carriers
A workplace pension under the collective agreement, with employer contributions that are a real percentage of salary, plus the state pension of the country. At SAS, Lufthansa, KLM, BA, Air France, Iberia and the others the employer contribution is one of the biggest hidden parts of the package and it is the reason the total compensation is closer to the Gulf than the salary suggests. Crew who stay 20 years retire with something. Crew who leave after three take a small pot with them.
Low cost European carriers
A pension exists under the local law (auto enrolment in the UK, the mandatory schemes elsewhere) with employer contributions at or near the legal minimum. Better than nothing. Not the legacy level. The agency contract years often have nothing beyond the legal minimum or less.
US carriers
401k plans with employer matching under the contracts, and the matching at the majors after the recent agreements is meaningful. Plus Social Security. The crew who contribute to the match from day one are the ones the union reps point at.
Gulf carriers
No pension. An end of service gratuity under UAE and Qatar law (a lump sum based on years of service and final basic salary) paid when you leave, which for a five year stint is a few months' basic. That is it. The Gulf salary is high partly because there is no pension behind it, and the crew who save the difference are the ones who come out ahead; the crew who spend it come out behind a legacy colleague after ten years.
Asian carriers
Varies: the Singapore CPF system for SIA local crew, the Hong Kong MPF for Cathay, provident funds elsewhere. Generally a mandatory contribution system that is real but modest.
How to think about it at 25
If you are at a legacy carrier: stay in the scheme, contribute the matched amount, and do not opt out to have more cash now. If you are at a low cost carrier: contribute above the minimum if you can, because the minimum is a small number. If you are in the Gulf: save a fixed share of every salary in your home country in something that grows, because the gratuity is not a pension and nobody will do it for you. If you are at a US carrier: take the full match, it is free money.
The honest comparison
A legacy crew member on a lower salary with a 20 year pension and a Gulf crew member on a higher salary with a gratuity and self discipline can end up in the same place at 45. The one who ends up worse is the Gulf crew member who spent it. The pension is the part of the package that nobody puts on the recruitment page and that decides the second half of your life.
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#2 Ex SAS, and I am the pension gap thread. Lotte has written the version I needed at 25. The employer contribution under the agreement was the best thing about the job and I did not know it until I left.
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#3 Emirates, purser, and the 'save a fixed share in your home country' advice is the one every Gulf crew should tattoo somewhere allowed. The gratuity is a few months' basic. Ten years of flying and that is what the airline gives you at the end. Save the rest yourself.
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#4 American, and the 401k match after the new contract is real money. The union reps say take the full match on day one and the crew who listen are the ones who retire. Simple and ignored.