It's still extremely prevalent unfortunately. So many members of the scheme get blinded by the "instant access" to a sum of money, and "promising" ROI's. The hurdles put in place by the regulator and schemes have scared some crooks off. But many still are looking to cash in of others.
How much do you need for comfortable existence in retirement.
- Thread starter newbiejim
- Start date
It's still extremely prevalent unfortunately. So many members of the scheme get blinded by the "instant access" to a sum of money, and "promising" ROI's. The hurdles put in place by the regulator and schemes have scared some crooks off. But many still are looking to cash in of others.
Total nonsense....
There are many reasons to consider a transfer, in most cases however, an individual should generally not.
It's more difficult now that it's ever been to advise on a DB transfer. The cost of PI insurance has risen massively and forced many firms/adviser to give up their DB transfer permissions. Look at the fall out from the British Steel (port talbot) situation, this in turn has massively hiked PI insurance costs. In the last year alone over 700 firms have stopped providing DB transfer advice.
Any industry will have a few dodgy individuals/firms, but to go round labeling people crooks is just ridiculous.
"Promising ROI's" - that's just not possible. Quotes from any FCA regulated company are fixed as to what they can show. You can't just quote any growth rates you fancy - these are set by the regulator.
Also with a ban on contingency charging recently - only 15 per cent of those who received a quote in Q4 2020 went on to complete their transfer. Fallen massively from previous years.
Looking from the otherside of things however, if your single at retirement age, with a pot of £400/500/600k from a DB scheme, no mortgage, no debts and some other savings/investments - Why would you not consider a transfer?? No need to pass it on to anyone, spend what you want whilst you can, I know I would seriously consider it. Flexibility to use it how you wish, when you wish.....
Every persons circumstances are different to the next. DB transfers are still very effective in the right situation for the right client. Many reasons existing for considering a transfer:
- Flexibility
- Potential for access to more tax-free cash
- Inheritance
- Health
- Concerns about the solvency of the sponsoring employer
Associate
600k pension and no mortgage. I can buy a 3090 when I retire. Stock should be good by then
3090Ti is coming - better start saving again...
Most experts say your retirement income should be about 80% of your final pre-retirement salary. That means if you make $100,000 annually at retirement, you need at least $80,000 per year to have a comfortable lifestyle after leaving the workforce. I would be fine with 50k, cause I don't need a lot. I just want to live in a senior house, but with my personal apartment and a nurse who would take care of me when I need that. And also thinking about moving to the USA and live there in a house like on seniorsite (learn more here).
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Soldato
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who are these 'experts'?
Caporegime
From Kenya.
80% of your salary to be 'comfortable'? Well duh! "Experts say that having 100% of your salary in retirement will mean you will see little change in your lifestyle" - genius!
Mines a non-contributory pension and i could have started drawing it 6 years ago! But each year sees an increase - it certainly won't be in the realms of 80% of salary though.
Mines a non-contributory pension and i could have started drawing it 6 years ago! But each year sees an increase - it certainly won't be in the realms of 80% of salary though.
Soldato
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I've been hammering my pension, current I'm 35 and putting in about 715 a month (mine and works combined). I am under egging that I'll have 400k at 55, however I'm hearing talk of private pensions being increased to 57 (not sure why as if its a pot that can run out it makes no odds). I'm going off a 2.5% increase in salary and a further 2.5% increase on the pot (can't remember exact equations used I my spreadsheet), buy I've got 75k in one pot and about 30k in another that's final salary. My current income is about 36k, but up north so probably more than average (obviously about half the average if London salary
).
).
Soldato
They are people selling financial products
That's a lot per month, remember you could die before you get itI've been hammering my pension, current I'm 35 and putting in about 715 a month (mine and works combined). I am under egging that I'll have 400k at 55, however I'm hearing talk of private pensions being increased to 57 (not sure why as if its a pot that can run out it makes no odds). I'm going off a 2.5% increase in salary and a further 2.5% increase on the pot (can't remember exact equations used I my spreadsheet), buy I've got 75k in one pot and about 30k in another that's final salary. My current income is about 36k, but up north so probably more than average (obviously about half the average if London salary
Soldato
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That's why I don't want to work till 90 (or whatever the state pension age is when I get thereThat's a lot per month, remember you could die before you get it
). Yay boomers
. It's salary sacrifice do I'm only putting in something like 500, but that's before tax so not losing as much if that makes sense.Edit I sacrifice 416 quid and 704 goes into to my pension.
Soldato
That's why I don't want to work till 90 (or whatever the state pension age is when I get there
It's Boomers fault for people living longer these days?
Yes, as they were instrumental in increasing life expectancy. It is also boomers fault that the public pension is an absolute joke.It's Boomers fault for people living longer these days?
Soldato
At the moment i am on long term sick leave (lost the plot) managing on ssp plus a little tax back £135 ish a week (obviously im an old git so >... k savings no income support)
Can't say i am living any differantly, maybe more aware of my heating oil use, but xmas coming up.......
Can't say i am living any differantly, maybe more aware of my heating oil use, but xmas coming up.......
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Man of Honour
A few years ago I engaged with a wealth management firm to future proof my retirement and maintain a decent quality of life, considering I'm a multinational it had to include travel. It was a bit of an eye opener but I completely changed my spending habits as well as invested in assets (properties here and back home) to secure some financial freedom. I'm aiming for around 60ish if all goes well.
I'm not going to lie, I've been lucky - or maybe I was just wise? Either way, I've made my own luck to a certain degree, but also realise that I have have some luck come my way. Over the past 22+ years I've been contributing to private pensions as well as work related ones - in fact my most recent employments have been very generous (15% contributions) plus a tidy final salary "golden" pension for one of my roles. I worked like a dog for it, but also had a lot of fun along the way. It was something my father wasn't good at doing as he was trying to hold onto his quality of life without necessarily being able to. He didn't stop working till his 70s - it aged him enormously.
It does mean I spend less on frivolous stuff than I would like, i.e. cars, bikes, gadgets etc... but it does mean we can afford to take the kids on holidays, and eat good quality food, as well as pay for clubs and after school activities etc...
Of course had I been single and without commitment I doubt I'd be in this comfortable position I find myself in, the toll of responsibility that being a family man puts on you is not insignificant! That's also why I've opened pensions for my kids and split the contributions to it and their savings account. It means they'll have less of "lump sum" when they turn 18, but they will have accrued 18 years of pension contributions which hopefully by the time they retire will offer them a comfortable life and/or early retirement.
If you haven't done so, even if you're already in your 40s, I'd seriously consider getting some financial advise / wealth management / something similar. If you can afford to invest/save a decent %age of your salary per month (excluding pension contributions) you'll be well set up.
I'm not going to lie, I've been lucky - or maybe I was just wise? Either way, I've made my own luck to a certain degree, but also realise that I have have some luck come my way. Over the past 22+ years I've been contributing to private pensions as well as work related ones - in fact my most recent employments have been very generous (15% contributions) plus a tidy final salary "golden" pension for one of my roles. I worked like a dog for it, but also had a lot of fun along the way. It was something my father wasn't good at doing as he was trying to hold onto his quality of life without necessarily being able to. He didn't stop working till his 70s - it aged him enormously.
It does mean I spend less on frivolous stuff than I would like, i.e. cars, bikes, gadgets etc... but it does mean we can afford to take the kids on holidays, and eat good quality food, as well as pay for clubs and after school activities etc...
Of course had I been single and without commitment I doubt I'd be in this comfortable position I find myself in, the toll of responsibility that being a family man puts on you is not insignificant! That's also why I've opened pensions for my kids and split the contributions to it and their savings account. It means they'll have less of "lump sum" when they turn 18, but they will have accrued 18 years of pension contributions which hopefully by the time they retire will offer them a comfortable life and/or early retirement.
If you haven't done so, even if you're already in your 40s, I'd seriously consider getting some financial advise / wealth management / something similar. If you can afford to invest/save a decent %age of your salary per month (excluding pension contributions) you'll be well set up.
Soldato
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It was tongue in cheek, but they have had it pretty easy and us youngsters are left to pick up the pieces.It's Boomers fault for people living longer these days?
That's why I don't want to work till 90 (or whatever the state pension age is when I get there
Edit I sacrifice 416 quid and 704 goes into to my pension.
Presumably the £704 includes your employer's contribution. If you salary sacrifice £416 then your pension contribution is £416 and it's £416 you don't pay tax/NI on.
Associate
Are you saying it's a joke it's too high, or a joke it's too low? Or are you being sarcastic? Clarity please