Soldato
And you'll be into your 60's before you can even get at that too...
Pension fund performance - do you monitor yours, how is it doing, do you actively change it?
- Thread starter danlightbulb
- Start date
Yeah it's a hard choice between SIPP and isa.
I'm starting a little SIPP this year to add some of the 40pc band into it simply due to the tax back.
But having an isa seems important too. As at least you're in control of that.
Soldato
Why don't you do what I do... slap everything over the 40% tax bracket + 2k or so; do give you wiggle room for capital gains, dividends, side hustles etc.. into a pension.
Then whatever you save from the amount left under £50,270 into an isa?
That is what I was thinking. It's not too much and it seems sensible as I'm not too far over
I'm basically earning peanuts at the moment because I'm putting almost all of my wages into pension,
Double win - it's free money and would need a 40% drop to be not worth the effort and also it avoids your money being spunked by the government. Tax is not good value for money by any stretch of the imagination with these absolute scumbags in power.
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Why? Policy change is a risk but doesn't seem likely to have that much of an impact to most people currently working. Although the age is changing from 55 to 57, existing pension schemes (at least the ones I have) are protected at 55 and the protection can be inherited even if you move provider. I do agree with the need for a strategy to fund the years between the age you want to retire and the age you can access your personal pension.
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Are you nearing retirement and trying to make up for not investing much earlier in life?
Soldato
There's talk of the pension age having to go up to 71, and as you can't get your own SIPP until ten years before state pension age... Personally I doubt anyone currently in their 20's will be getting a state pension in their 60's.
None of it affects me, I'm over 55 already, and retired, all I'm saying is people need to be proactive and tailor their financial planing to their own circumstances.
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I did post about this before so should probably shut up now
I’m fine and am on track to retire early but I really wish I’d educated myself financially far sooner. I’m just at angry old man stage where I’m salary sacrificing as much as possible to avoid my tax money being spaffed up the wall
Financial literacy really does need to be compulsory in school because it’s depressing how many people I know who haven’t put any effort into planning for retirement.
Actually maybe they’re the clever ones if they end up with the state paying for everything… hmm
Good luck justifying that with decreasing life expectancy.This has been reported in serveal papers, but the cost of living a moderate pension life has increased, with the governement touting to increase the retirement age to 71 too... it makes for a grim future.
New cost of retirement as millions will pay 34% more for 'moderate' lifestyle
The new Retirement Living Standards index shows how much money you need in later life to cover basic expenses, as well as luxuries - with the cost of living adding to expectationswww.mirror.co.uk
If they tried that I’d hope we’d be like the French and rioting on the streets.
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Soldato
That is so over the top to be stupid. As a couple my pension is less than the "moderate" for a single person. We live comfortably and save as well. Absolute rubbish as normal from the BBC.
PS. Boom radio beats BBC2 as well.
That wouldn't happen and you know it.
Largely because like the last time they raised the pension retirement age, it would impact the younger generations who don't really realise the impact. Those in their 40s and upwards won't be affected
Soldato
It wasn't BBC they just reported on what someone else had produced. note the source at the bottom left
I think the massive issue is that many people will need to carry on paying private rents into retirement
As we have said many times, the true difference in retirement for many will be do they or don't they own their own home
Soldato
Yes, but I did read as far as those figures did not include housing costs.
Soldato
That was kind of my point.
Well along with your comments about the BBC when the same data is/was on just about every new source.
I don't really agree with their analysis, but then I rarely do with these high level pieces because they seem to always take a point that seems way above what I consider the term really means.
Comfortable for example seems pretty bloody aspirational in regards holidays etc when they are inactive economically.
When you start talking eating out multiple times per week, which I assume doesn't mean McDonalds then you can see how the numbers quickly start going up.
Soldato
I think it depends on what living costs you have. They have definitely leaned towards the upper end of those ranges for someone that may have cleared their mortgage etc. I think for me in London with my family once we have the mortgage gone £31k is more than enough.yikes bbc@10 last night - pension need estimates
Soldato
Personal, as a single person I'm targetting the equivalent of 3-4K per month for when I retire.
Yes, I may of paid off the mortage which is the largest out going for most people and I may not need to invest into my pension or stocks and shares.. but then comes the medical bills and god knows what else gets invented in the meantime that we have to pay for to have a standard of living.
The internet, subscription and mobile phones wasn't around when most pensioners was saving for their pensions and now it's just deemed as a standard services to pay for. Heck we may have to pay a service charage for our AI robots to do the house work.
The fact that I'm living off less than that at the moment, doesn't mean I want to retire and live the same standard of living... I seen some dreadful videos of people into the FIRE movement, when they would do the craziest things to save money just to stop working and live the same poor standard afterwards. I want my retirement to be filled with hobbies, events and holidays.. The first thing I'm going to do is to travel the world; how many stops and for how long will depend on how much I have saved.
Yes, I may of paid off the mortage which is the largest out going for most people and I may not need to invest into my pension or stocks and shares.. but then comes the medical bills and god knows what else gets invented in the meantime that we have to pay for to have a standard of living.
The internet, subscription and mobile phones wasn't around when most pensioners was saving for their pensions and now it's just deemed as a standard services to pay for. Heck we may have to pay a service charage for our AI robots to do the house work.
The fact that I'm living off less than that at the moment, doesn't mean I want to retire and live the same standard of living... I seen some dreadful videos of people into the FIRE movement, when they would do the craziest things to save money just to stop working and live the same poor standard afterwards. I want my retirement to be filled with hobbies, events and holidays.. The first thing I'm going to do is to travel the world; how many stops and for how long will depend on how much I have saved.
Soldato
Agree with Hagar tbh. I'd say we have a more than moderate lifestyle on around 30k as a couple. Then again we don't live in London so that probably helps.
Soldato
The 14k would do me I haven't even make my tax free allowance yet although I've paid £900 or so refund if I eventually find a job