My current place does a 12% employer contribution and i can put in my own contribution, but at the moment its just set to the employer 12%
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Best savings account?
- Thread starter Merlin5
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My current place does a 12% employer contribution and i can put in my own contribution, but at the moment its just set to the employer 12%
12% is very healthy. You should be whacking in a decent chunk given you don't NEED £3k/mo spare. If I were you, I'd up my contribution to at least 6%. Then with what's left, whack it into an ISA.
I know i should, but im paying it in to savings as i may get to a point where i want to pay chunks off a mortgage,
Im a single person with £134k still on the mortgage
Pensions you cant access until your 65
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You can access a private pension from 57. You could be paying in tax free a bunch of money, then taking a tax free lump sum at 57 to clear your pension balance.
It already is a no brainer. Unless you folks are holding funds for shortterm (lol) then you are in it for long-term. If you are in it for long-term, the single best place for your cash is a pension. For a start, higher rate payers will get 40% tax relief. That means straight away, any of your dodgy investments need to be beating the market by 40% just to BREAK EVEN.
As always, the right answer is a portfolio, but not topping up pensions, even by a measly amount, is pretty foolish.
And 25% tax FREE is still a pretty epic incentive. You can then buy an inflation linked annuity and forget about it, or just pay a discount compared to the tax you would have paid anyway.
Just looked into the OH pension via Royal London.
Checked their website and found they do MSCI World Index so might be better returns than default pot.
Was considering a partial transfer to Vanguard but this keeps it simple for her but their fees are a lot more.
My provider on the other hand allows nothing like this via work pension so opting for aggressive portfolio based on them managing it.
Checked their website and found they do MSCI World Index so might be better returns than default pot.
Was considering a partial transfer to Vanguard but this keeps it simple for her but their fees are a lot more.
My provider on the other hand allows nothing like this via work pension so opting for aggressive portfolio based on them managing it.
Soldato
yeah, I was reading the posts in the stock market thread in regards of not having a pension and placing everything in the S&P 500 and biting my lip.
most pension funds are ran by professionals with years of experience backed by colleagues, framework and governance.. sure they may not beat the market but they are unlikely to mess up big time as well. Also there‘s been periods of decades where the s&p500 has under preform other markets, and it would suck big time if anyone who has all their ”pension” into the s&p500 wanted/needed to withdraw funds at that time.
Soldato
World indexes includes stocks that are less liquid and more difficult to obtain and manage, hence the increase in management fees.
you could emulate a world index by placing 90% into a developed region etf and 10% into a developing region eft and saving some of the management fees.
Associate
I recently put 90k into chip savings, getting 400 a month interest off it.
Had it in nat west previously earning next to nothing.
Had it in nat west previously earning next to nothing.
Soldato
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- 13 Sep 2005
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You'll hit the PSA in no time. May want to consider an ISA. 20k now and 20k in April.
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Delved deeper to see what the current weighting and plan was and it was this:
Balanced Tracker Lifestyle Strategy(Annuity)Investment information 15 Years or more from retirement:
Governed Portfolio 4RLP UK Corporate Bond 1.75%
RLP Global Corporate Bond 0.75%
RLP UK Government Bond 1.10%
RLP Global Government Bond 0.80%
RLP Property 11.85%
RLP UK Index Linked 0.90%
RLP Deposit 1.79%
RLP Global High Yield Bond 2.16%
RLP Short Duration Global High Yield 0.75%
RLP Commodity 3.50%RLP Absolute Return Government Bond 0.40%
RLP/Blackrock ACS Global Blend 74.25%
Most value is coming from RLP Property 11.85% & RLP/Blackrock ACS Global Blend 74.25%
Surely flexible enough to change this up to emulating a World Index as no way near retirement.
I'd guess a simple FTSE all world tracker will beat this and will be cheaper.
The main component here Global blend is heavily weighted to the UK, 27% vs ~4.5% in a global tracker and that is why it has under performed (US shares have dominated the last decade).
If you wanted to get close to this in a SIPP id look at FTSE all world + TRY property if you wanted to keep the property exposure.
Soldato
Bear in mind that I’m no financial expert, I just have an unhealthy interest in getting wealthy lol
this looks to like;
junk bonds 4.66%
Governed Portfolio 4RLP UK Corporate Bond 1.75%
RLP Global Corporate Bond 0.75%
RLP Global High Yield Bond 2.16%
Government bonds 2.3%
RLP UK Government Bond 1.10%
RLP Global Government Bond 0.80%
RLP Absolute Return Government Bond 0.40%
reits 11.85%
RLP Property 11.85%
money market 3.44
RLP UK Index Linked 0.90%
RLP Deposit 1.79%
RLP Short Duration Global High Yield 0.75%
RLP Commodity 3.50%
RLP/Blackrock ACS Global Blend 74.25%
my friend above is correct, the uk market is currently under preforming.. which mean two things.. it’s not increasing as fast as the s&p500 in value but it means that you could be buying in at a cheaper time and if the uk market ever improves, you will see the benefits. Just hope Truss don’t come along with another wacky idea.
there are some advantages of buying home country shares as they are not affected by fx rates at time of buying and selling.. also there‘s a some foreign taxes that you can’t get round even in a pension or isa, that’s the cost of doing business in that country.
that pension plan looks very similar to my own work plan… and considering mine is being managed by one of the uk’s largest pension companies and have been put together for one of the worlds largest’s banks, I’m not going to say that I know any better than them. I have asked around at work (due to my unhealthy interest) and I’ve been told to leave mine alone even by the people who trade for a living.
the account managers will balance the portfolio as retirement draws nearer and they get discounts on trades and for buying in bulk. and if you start to manage your own, you may have to keep doing it until the pot is empty.
Pensions isn’t something I’m prepared to mess around with my own without professional help so I be a bit of a **** if I suggest messing around with someone else’s.
This is the main reason why I have trading accounts, so I can mess about with that and not my pension.
The only time I would suggest messing about with a pension is if you’re self employed and have no choice or if you work in the public selector as some of those plans are truly rubbish, if your not on a defined benefit at the end.
my advice would be to get the maximum out of your work pension, in terms of work contributions and NI rebate (if on offer) and put some funds into a SIPP, you will get the tax back but not the NI. You could play about with.. after a few years compare performance and then see how you feel. You could then transfer your work pension to the SIPP or use the SIPP at your new work place. Yes you will lose possible gains, but then again you may not have FUBAR’d your pension pot, YouTube makes it sound so easy but 80 year old you thank you for what you have done?
Bear in mind that I’m no financial expert, I just have an unhealthy interest in getting wealthy lol
this looks to like;
junk bonds 4.66%
Governed Portfolio 4RLP UK Corporate Bond 1.75%
RLP Global Corporate Bond 0.75%
RLP Global High Yield Bond 2.16%
Government bonds 2.3%
RLP UK Government Bond 1.10%
RLP Global Government Bond 0.80%
RLP Absolute Return Government Bond 0.40%
reits 11.85%
RLP Property 11.85%
money market 3.44
RLP UK Index Linked 0.90%
RLP Deposit 1.79%
RLP Short Duration Global High Yield 0.75%
RLP Commodity 3.50%
RLP/Blackrock ACS Global Blend 74.25%
my friend above is correct, the uk market is currently under preforming.. which mean two things.. it’s not increasing as fast as the s&p500 in value but it means that you could be buying in at a cheaper time and if the uk market ever improves, you will see the benefits. Just hope Truss don’t come along with another wacky idea.
there are some advantages of buying home country shares as they are not affected by fx rates at time of buying and selling.. also there‘s a some foreign taxes that you can’t get round even in a pension or isa, that’s the cost of doing business in that country.
that pension plan looks very similar to my own work plan… and considering mine is being managed by one of the uk’s largest pension companies and have been put together for one of the worlds largest’s banks, I’m not going to say that I know any better than them. I have asked around at work (due to my unhealthy interest) and I’ve been told to leave mine alone even by the people who trade for a living.
the account managers will balance the portfolio as retirement draws nearer and they get discounts on trades and for buying in bulk. and if you start to manage your own, you may have to keep doing it until the pot is empty.
Pensions isn’t something I’m prepared to mess around with my own without professional help so I be a bit of a **** if I suggest messing around with someone else’s.
This is the main reason why I have trading accounts, so I can mess about with that and not my pension.
The only time I would suggest messing about with a pension is if you’re self employed and have no choice or if you work in the public selector as some of those plans are truly rubbish, if your not on a defined benefit at the end.
my advice would be to get the maximum out of your work pension, in terms of work contributions and NI rebate (if on offer) and put some funds into a SIPP, you will get the tax back but not the NI. You could play about with.. after a few years compare performance and then see how you feel. You could then transfer your work pension to the SIPP or use the SIPP at your new work place. Yes you will lose possible gains, but then again you may not have FUBAR’d your pension pot, YouTube makes it sound so easy but 80 year old you thank you for what you have done?
Thank you for an insightful post. The idea about doing a separate SIPP from work was one I was exploring outside of my own work pension to see how it compares in a few years so the same could apply to my partner.
To put into context she puts in 4% and her employer 10% but have told her to up her own contribution to perhaps 10% but then those funds are so so. Perhaps she needs to dip into a different fund for new additions.
My own one is at 5% and 3% and won't be upped by employer so need to up my game also to something far greater. I was looking to go minimum 10% myself to play some catch-up.
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Associate
Already got 20k in a ISA mate which is my years quota. Didn't know what to do with the rest ? So stuck it in Chip for now, if I go over my PSA I believe because I'm PAYE it will just adjust my tax code so no tax returns ( hopefully )
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Soldato
this setup is likely to cover the uk twice, once in the world fund and again in its own fund.. it’s diversify diversify but only in terms of location and not assets class. the reason why pensions include bonds, REITs and commodities etc, is to help reduce risk.. but less risk equals less rewards.
The world equity fund could be excluding UK, hard to see with just that title. But the main issue is the fees, they seem be a flat 1% vs an all world tracker at 0.1% ish. (Basically the same product as well, just pension funds like to charge £££). Makes a big difference over a typical saving periods of 20-30 years.
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