Permabanned
Best advice I've read so far. Just *really* wish I'd done it.
Pension/future
- Thread starter NotAGolf
- Start date
Best advice I've read so far. Just *really* wish I'd done it.
Not in the slightest, if I have children then chances are I'll also leave some sort of property behind (saying I own my home outright at the moment this isn't likely to change). If my children want to split that up between them if I have multiple ones so be it. I don't see why I should be taking a gamble by putting money away on the off chance I make it to retirement age to enjoy it. I also don't see why I should work hard for others to enjoy my money.
Associate
but you must admit an inflation linked annuity, especially if you want to look after your missus if you cop it, is going to return you about 3.2%
So for *any* kind of life, that means in todays money you need to be working towards a £500,000 pension pot.
So £80 a month (or whatever), matched by your employer, with the tax benefit, is in no way EVER going to cut the mustard. People need to know that now! Not 2 months after their retirement party when they find they can't afford the 'leccy bill
On the other hand some pension > no pension.
I don't know how on earth I could expect to save £500,000 over my lifetime. That would take me 20 years tax free to earn, buying absolutely nothing. Plus as a fatty my heart will be gone before then anyway.
Associate
Something is always better than nothing and its always a problem when you're young to think that far ahead and not buy the next car, graphics card, camera, drinks, motorcycle, hookers or whatever.
Its an education thing - I don't plan to rely on the goverment to provide anything to me when I retire so I have to look after myself and my family now and plan for the future. With an aging population, its VERY shortsighted to assume that the safety net will be adequate in 30-50 years time.
Its an education thing - I don't plan to rely on the goverment to provide anything to me when I retire so I have to look after myself and my family now and plan for the future. With an aging population, its VERY shortsighted to assume that the safety net will be adequate in 30-50 years time.
Permabanned
The government's plan is basically to keep us working well in to our 70s (it's already up to 67 and they're screaming from the rooftops 'it has to get worse'!). Therefore the plan is simple
1) Longer to save for pension
2) Shorter to live when retired so % funds should move up ..
:/
I have to ask, how old are you?
Associate
Makes sense with an aging population. I very recently started paying into a pension to give me an equivalent of £17k retirement income (inflation adjusted) for retiring at 65. Obvioulsy if my salary goes up (which I kind of hope it does) I might start putting a bigger % in there. My only real gripe is that as a 23 year old, I give myself about a 50% chance of living past 65 which means it feels like Im chucking a lot of money away when I could be saving for a house etc.
If not more, agreed. Which is why a pension is only one of the many methods you need to use to save for retirement. The tax relief alone is reason enough to do it, but it cannot be your only investment, or you will be screwed, just as if you put all your money into a single bank, or a couple of properties you could be screwed.
The sensible recommendation is to aim for a third of your total retirement in a pension.
The idea also is the income it gives you from the safety net of a salary, where some people really would have trouble if they were given the whole amount in one go.
Associate
Agreed
The biggest risk is that "organised" pensions are at risk of the government changing the rules on pensions any time it likes. They remove the freedom of the individual to control that money - hence the biggest reason to have other plans.
The biggest risk is that "organised" pensions are at risk of the government changing the rules on pensions any time it likes. They remove the freedom of the individual to control that money - hence the biggest reason to have other plans.
Pensions/ISA/Shares/Property/state pension/savings accounts etc etc etc
That is what is a "retirement" income is made up of these days. A pension is not the be all and end all of retirement - it is a source of income/cash that will help fill the gap between a basic state pension and your hopes/expectations of a decent retirement. I spend hours and hours with clients ranging from £100 a month into pension to £2/3million pension pots - they all have different expectations of what lifesytle they are looking for in retirement and it's all about managing that expectation.
If you do nothing about saving for you retirement - expect nothing in return. simples
It's like anything else in life - sticking £100 a month into a pension and leaving it for 40 years and expecting to retire with a nice income/lump sum ain't ever going to happen.
You suggest to someone to consider upping their pension payments by 5/10% a year and people look at you as if you are asking for a kindey. But every time Sky increase their monthly subs by 5/10% a year - they don't blink.
You need to focus on what you are aiming for "realistically" in retirement/what can you afford to pay now/ are you happy with £130 a week state pension in retirement/what is your attitude to risk/tax advantages etc etc etc.
The attitude of a lot of people is - who cares but realistically, without providing something extra for yourself - you will be working into your 70's and living on next to nothing unless you do something to provide an additional income in retirement.
That is what is a "retirement" income is made up of these days. A pension is not the be all and end all of retirement - it is a source of income/cash that will help fill the gap between a basic state pension and your hopes/expectations of a decent retirement. I spend hours and hours with clients ranging from £100 a month into pension to £2/3million pension pots - they all have different expectations of what lifesytle they are looking for in retirement and it's all about managing that expectation.
If you do nothing about saving for you retirement - expect nothing in return. simples
It's like anything else in life - sticking £100 a month into a pension and leaving it for 40 years and expecting to retire with a nice income/lump sum ain't ever going to happen.
You suggest to someone to consider upping their pension payments by 5/10% a year and people look at you as if you are asking for a kindey. But every time Sky increase their monthly subs by 5/10% a year - they don't blink.
You need to focus on what you are aiming for "realistically" in retirement/what can you afford to pay now/ are you happy with £130 a week state pension in retirement/what is your attitude to risk/tax advantages etc etc etc.
The attitude of a lot of people is - who cares but realistically, without providing something extra for yourself - you will be working into your 70's and living on next to nothing unless you do something to provide an additional income in retirement.
Associate
Lots of good advice about spreading your risk. One point to note about people going on about tax relief; you only get it at source the government take it back again when you take an income from it.
Soldato
Don't forget, when you put £10 in a pension, the government pays in £2 extra (unless you are a higher rate tax payer, then the government will pay in £2 and reduce your end of year tax bill by £2 too).
For retirement, pensions > pretty much anything else unless you are a skilled investor (in which case, unless investing in housing etc, do it in a pension wrapper to get the tax benefits)
For retirement, pensions > pretty much anything else unless you are a skilled investor (in which case, unless investing in housing etc, do it in a pension wrapper to get the tax benefits)
Associate
My employment doesn't offer a pension scheme as its too small a company...I've found personal pensions a little confusing, as you get tax relief/contributions from the government, but have to buy an annuity of which 75% is then taxed as its income (after 25% lump sum tax free). Then there are possible fees and the locking away of the money.
I'm not negative about or against pensions, its just they don't suit me and leave me a little uncertain. Isn't the government supposed to be introducing a new clearer pension scheme which all companies have to join?
Anyway I have very modest savings (Cash ISA, bonds, index linked, regular savings, high interest etc) all low risk, low return. I save about 60% of my monthly income. I only need to worry about inflation, as at the moment that does eat away at some of my savings. I'm not a big spender by any means, but still need to take it into account. I'm hoping to have saved 100k by late 2014.
I'm not negative about or against pensions, its just they don't suit me and leave me a little uncertain. Isn't the government supposed to be introducing a new clearer pension scheme which all companies have to join?
Anyway I have very modest savings (Cash ISA, bonds, index linked, regular savings, high interest etc) all low risk, low return. I save about 60% of my monthly income. I only need to worry about inflation, as at the moment that does eat away at some of my savings. I'm not a big spender by any means, but still need to take it into account. I'm hoping to have saved 100k by late 2014.
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Soldato
4% from me and 4% from my employer at the mo. Have been doing at for a couple of years now but won't be increasing it much in the near future as I'm still only 24 and would rather focus on a house deposit and other investments, while still knowing I'm putting something away for the future.
Soldato
22 years old and have been on a pension scheme since working at 16...
Both through bank and work scheme. Although I still don't have a clear understanding of how it's working, just that at some point when I retire, I will have a nice chunk of money...
Theoretically that is, if the government don't get their mitts too deep into it.
ags
Both through bank and work scheme. Although I still don't have a clear understanding of how it's working, just that at some point when I retire, I will have a nice chunk of money...
Theoretically that is, if the government don't get their mitts too deep into it.
ags
I only started putting into the company pension when I joined my new employer at 32, wish I'd started sooner but then again I don't intend to retire, ever. Having seen what my parents did when they retired (did lots but seem bored silly now) I just can't see the long term point of retirement. I'll do it when I'm forced too by ill health, but not before.
My pension is mostly for my wife, not for me.
My pension is mostly for my wife, not for me.