Anyone reduced their pension contribution?

[eddiemcgarrigle]

If your contribution is 2 figures, on behalf of everyone in the private sector, die

Thanks for the support. I currently pay 14.2% with this rising to 15% next year. My lump sum has been halved and my yearly pension allowance has been slashed by third. I am also expected to work a further eight years, fully proving the adage - pay more, work more, get less.

 

[platypus]

despite the company doubling whatever contributions i put in i opted out altogether from the pension scheme.

it is a risk, one i'm very aware of, however the cash now is of much more use to me than being locked away until my late 60's.

Except that you're losing out on at least an additional 20% contribution to your money. You will not find a saving product that good elsewhere; opting out of a company contributory scheme is rather short sighted.

Not to mention that if your other savings (you do have those...right?) don't work out, you're going to struggle to fund your own retirement/care.

 

[Amp34]

Thanks for the support. I currently pay 14.2% with this rising to 15% next year. My lump sum has been halved and my yearly pension allowance has been slashed by third. I am also expected to work a further eight years, fully proving the adage - pay more, work more, get less.

What was your initial retirement age?

Except that you're losing out on at least an additional 20% contribution to your money. You will not find a saving product that good elsewhere; opting out of a company contributory scheme is rather short sighted.

Not to mention that if your other savings (you do have those...right?) don't work out, you're going to struggle to fund your own retirement/care.

Unless you're a millionaire you'll end up with exactly the same care and in the same care home whether you end up paying tens of thousands or the state pays...

The biggest issue for many people is rental costs. After retirement most people's pensions will not pay their rental costs, leaving them in a dire situation unless the government steps up and pays the rental costs. The benefit of owning your own home (outright) outweighs a pension (both is obviously better but many young people can't afford that in the south east).

 

[eddiemcgarrigle]

What was your initial retirement age?

I brought in three years to my pension which would have allowed me to retire at 52, now I need to work until I'm 60 or I will lose a hefty part of my already decimated pension.

 

[davido_labido]

Hmmmmm,

Opentosuggestions. I think I know you!! Just noticed your from longton way, and a similar age so clicked on your trust and knew the name!! Not sure where from though....

That's my random post of the day out of the way...

 

[Teknobry]

Except that you're losing out on at least an additional 20% contribution to your money. You will not find a saving product that good elsewhere; opting out of a company contributory scheme is rather short sighted.

Not to mention that if your other savings (you do have those...right?) don't work out, you're going to struggle to fund your own retirement/care.

it's not short sighted as I am aware of how much potential 'extra' money i'm losing out on by not paying a pension contribution. the gamble though is i'm now 33, have a house with approx 80k mortgage remaining and am looking at buying my next one in 12 months time.
i'd rather invest in property than tie up money i can't touch for over 30 years.

the backup is the other half is on a final salary pension so she'll be supporting both of us if it goes pete tong, lol

 

[AndyT]

I brought in three years to my pension which would have allowed me to retire at 52, now I need to work until I'm 60 or I will lose a hefty part of my already decimated pension.

Our hearts bleed. Public sector workers have lived off the fat of the land for years and assumed that the party would never end. Now that people are beginning to act on the long known realisation that the public sector is bloated and inefficient, Government is rightfully starting to claw back some cash.

How people didn't see this coming a mile off I will never understand.

 

[D.P.]

despite the company doubling whatever contributions i put in i opted out altogether from the pension scheme.

it is a risk, one i'm very aware of, however the cash now is of much more use to me than being locked away until my late 60's.

It doesn't have to be a risk.

A lot depends on the pension shame you are enrolled in. I have complete choice over my pension investments. If I want low risk I just put it in bonds, I get 2-3% interest and when I retire I can take the whole lot out if I want. Since my employer instantly doubles my investment I always win and there would be zero risk.

But with risk comes more returns. I have a diverse investment strategy and I, seeing 12-18% returns per annul right now.

 

[Teknobry]

i meant by risk the chance of not having anything for retirement by NOT having a pension

 

[eddiemcgarrigle]

Our hearts bleed. Public sector workers have lived off the fat of the land for years and assumed that the party would never end.

So, tell me how much you pay into your pension and we can compare who is going to be better off. You really need to stop falling for the blatant lies put out by Westminster.

 

[Buckeyed]

My pension is sorted by Hargreaves Lansdown and they have a simple calculator on their site to give an approximate pension value. Obviously it will depend massively on how risky you are with your pension, but its a decent projection.

https://www.hl.co.uk/pensions/interactive-calculators/pension-calculator

 

[Sho]

I'm opting out of it me. I don't see the need to save with the government scheme. I need the money now. Can't be waiting another 40 years. In 40 years time i don't know if I'm going to be alive or not.

In Jan i plan to buy my first house. Then i do plan to buy few other properties. I would rather bank on them then a pension.

 

[ci_newman]

My pension is sorted by Hargreaves Lansdown and they have a simple calculator on their site to give an approximate pension value. Obviously it will depend massively on how risky you are with your pension, but its a decent projection.

https://www.hl.co.uk/pensions/interactive-calculators/pension-calculator

That makes for some scary reading! I'm contributing ~ £500 / month (inc. employer contributions) at the moment and the calculator reports I'll be looking at a pension of around £15k / year - that is very small, especially reflecting for inflation over the next 40 years

 

[chief barker]

That makes for some scary reading! I'm contributing ~ £500 / month (inc. employer contributions) at the moment and the calculator reports I'll be looking at a pension of around £15k / year - that is very small, especially reflecting for inflation over the next 40 years

Is that without taking a lump sum from it?

 

[ci_newman]

Is that without taking a lump sum from it?

That was with a very small lump sum (sports car )

[Edit] That's assuming that my employer continues contributing too, who know what might happen in the next 40 years!

 

[chief barker]

That was with a very small lump sum (sports car )

Ah...nice

 

[Buckeyed]

That makes for some scary reading! I'm contributing ~ £500 / month (inc. employer contributions) at the moment and the calculator reports I'll be looking at a pension of around £15k / year - that is very small, especially reflecting for inflation over the next 40 years

Don't panic - the calculator shows based on buying power in today's money.

All figures take account of inflation and show the buying power of your pension in today's money.

 

[yogibear88]

That makes for some scary reading! I'm contributing ~ £500 / month (inc. employer contributions) at the moment and the calculator reports I'll be looking at a pension of around £15k / year - that is very small, especially reflecting for inflation over the next 40 years

This will be based on current rules i.e. purchasing an annuity. In the recent budget it was confirmed that there will be no limit to what you can draw from your pension fund (which makes pensions a lot more attractive in my opinion). However, as with pension rules politicians seem to change their mind with the wind and by the time your retire who knows what the rules will be!

With regard to op's questions if you are receiving an employer match I would personally keep it as it is if you can afford it.

For anyone that is a basic rate tax payer and doesn't benefit from an employer contribution or salary sacrifice arrangement I would personally fund my Isa before my pension.

(This is all my personal opinion)

 

[RedvGreen]

Our hearts bleed. Public sector workers have lived off the fat of the land for years and assumed that the party would never end

Public sector isn't all it is cracked up to be. No bonuses, no decent wages (unless you are blessed by a Director or Assistant Director position), barely any entitlements for when you are working away from home, travel costs that are a half-hearted gesture towards your actual outlay.

Pension has been good previously, however, salary is low. Remember, grass is always greener, and the Government and other influentials just love to play people against each other when they can as it detracts from their own undertakings.

I think I have one of the highest pensions available for a non-management/executive public sector worker, but that is still only around 6.5% my contribution and 19.5% employer contribution. If I come to survive to retirement, that isn't actually that much as my overall salary hasn't been great (yet).

 

[Heliospherez]

As was said above - don't focus too much on the results of pension calculators..... they are rough guides which assume you will be buying an annuity (which in itself is dependant on how much of a risk you are - as in a risk that you will live to you are 95 - and not drop dead at 71 from a smoking related illness after drawing £10,000 of your 1/4 of a million £ annuity)

By the time you come to get access to your pension, you will probably have the option to have the lot as a lump sum - which is probably one of the best things this Gov. changed.

This means that if you are wise enough and spread your investment, risks etc - you will more than likely get a far better return than any of these pension calculators are predicting.

Then again - if like me you plan on taking your all your money and going to live somewhere where the cost of living isn't massive, and it's sunny and cheap to rent..... your £££ will be worth a lot more in real terms.