I like James Shack as well, he gives some really good examples of how it all works and certainly made me understand how drawdown should work when I retire.
Pension fund performance - do you monitor yours, how is it doing, do you actively change it?
- Thread starter danlightbulb
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this is fascinating, honestly... I never knew that much about annuities...
but at 65 years old and for 100k you can get an average of 7.7k a year (at the moment).. that' like 7.7% APR!
you only have to live till 78 years old and you will be quids in, and you can buy insurance to ensure that if you did kick the bucket sooner than there will be an amount that pays out.
doesn't seem like a bad idea to use some of my pension pot or even ISA to have some guaranteed income for the rest of my life.
but at 65 years old and for 100k you can get an average of 7.7k a year (at the moment).. that' like 7.7% APR!
you only have to live till 78 years old and you will be quids in, and you can buy insurance to ensure that if you did kick the bucket sooner than there will be an amount that pays out.
doesn't seem like a bad idea to use some of my pension pot or even ISA to have some guaranteed income for the rest of my life.
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I currently have a Legal & General pension and it’s invested in their Multi-Asset 3 fund. However, I’ve noticed there are over 50 different asset options available. Since I’m still relatively young, I’d like to take a higher-risk approach to potentially maximise long-term growth—but I’m unsure how to decide which funds to invest in.
I have some form of gov pension back in the UK (since I worked for the gov for 7 years).... but never looked at it.
My 401K here is doing almost nothing at present thanks to trumpsterFire.
I absolutely regret not getting myself together until a few years ago in regard to savings etc. I really didn't earn very much till later in life, and now playing catch up.
My 401K here is doing almost nothing at present thanks to trumpsterFire.
I absolutely regret not getting myself together until a few years ago in regard to savings etc. I really didn't earn very much till later in life, and now playing catch up.
Taking early retirement with a voluntary scheme paying all bar the 30k tax free sum into my pension to avoid tax etc, there's about 9 of us going , as most are doing the same the company save 15% employer NI, was cheekily suggested they ought to give that to us and they agreed 
Question, if anyone can answer as I am rubbish at pensions and numbers, much appreciated if you can.
Is the people's workplace pension the best place to have a pension ?
Age 44, I have 35 k in at the moment ( never really had any advice, took an interest in this) so it's very low !
I have 30 k that I want to wham into a pension if possible and will be then putting away 120 a week into the workplace one as I'll be mortgage free soon.
33 k a year salary.
Is the people's workplace pension the best place to have a pension ?
Age 44, I have 35 k in at the moment ( never really had any advice, took an interest in this) so it's very low !
I have 30 k that I want to wham into a pension if possible and will be then putting away 120 a week into the workplace one as I'll be mortgage free soon.
33 k a year salary.
From what I’ve seen the workplace pensions are not the best, they tend to be very limited in what you can use them to invest in. Especially if you’re in just the default plan which (again from what I’ve seen) is a load of bonds and some uk assets.
It’s important that you stay in it to get the employer contributions, but it may be worth moving it or some of it to a personal pension. Then doing it on a yearly or biannual basis.
In terms of putting a load of cash into a pension, you can only put in £60k per year or up to certain percentage, IIRC 60% of your annual salary for the year; whichever is the lowest. You also can’t put in an amount that will take your salary below the minimum wage.
The limits are across all your pension schemes for the year.
The best way of putting into your pension if your place uses salary sacrifice and NI rebate, is to put in the max from your salary and use the cash for everyday living, that way you get tax relief on it. But I don’t think workplace pensions have salary sacrifice nor NI rebates.
Not true. You can contribute up to 100% of your relevant earnings per year, with a limit of £60k. Your employer can't salary sacrifice an amount that would take you below minimum wage, but if you have a lump sum like the poster you can contribute as much of that as you want into a SIPP as long as the total contribution don't exceed 100% of relevant earnings plus any unused allowance from past 3 tax years.
@alchal, you may go a little over your relevant earnings (£33k unless you have any other qualifying income) if you contribute the £30k lump sum and start doing £120 a week in the same tax year, but it almost certainly won't be a problem because you can carry forward unused allowance from the past 3 tax years.
I would open a SIPP for your lump sum and if you have the possibility make regular transfers out into it from the people's pension. You'll automatically get 20% relief added to your lump sum SIPP contribution by the SIPP provider, so the £30k will turn into £37.5k. Look into it yourself but standard advice is to invest into a low cost global index tracker like Vanguard FTSE All World ETF.
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Soldato
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This sounds like a good plan, but just to add that the carry forward rule is a tool for high earners only.
At 33k you are a basic rate tax payer (like me) and cannot carry forward.
Right, I forgot that you can carry forward but you still can't contribute more than your relevant earnings for the year. I think i made the same mistake earlier in this thread
Soldato
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I started my new job early March, it's now July and I'm still trying to get the pension set up (i.e. able to log in on the provider website, change the investment, change contribution). Looks like the company ripped me off a bit by not starting the pension for 3 months, which apparently they can do, but nobody told me I had the right to make it start earlier. Then after 3 months it's looking like another 2 months delay to be able to get the info I need to log in and manage it.
Ridiculous imo, pensions should start in month 1 by default, and that includes having an account to manage it.
Ridiculous imo, pensions should start in month 1 by default, and that includes having an account to manage it.
They usually (in my experience) align with a probationary period, for obvious reasons
Been a while since I started a new job but if you were in a probationary period then it's fairly normal for no pension provision to be made.
Soldato
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Nah I have 6 months probation, companies just get up to 3 months to take the ****.
www.gov.uk
Workplace pensions
Workplace pensions and automatic enrolment - how you're affected, how pensions are protected, what happens if you move job or go on maternity leave and how to opt out