Pension stuff

Freddie1980 · 6 Jun 2019 at 13:42

413x said:
I started at 27 and had to put in 20pc in total.
Ran some calculations. If I don't I won't have enough.
A lot of people are in for a shock later in life

Out of interest what did use as your rate of return on your investments? I've been using 7% as an average across the life of my pension but when I've checked on the actuals recent years have been around 14%! On the calculations I've done the ROI is the biggest driver, after about 12/15 years of paying in your returns should start to overtake your contributions. It's surprising just how much of a difference 1% on ROI makes as well, it may even mean being able to retire several years earlier.

Dirk Diggler · 6 Jun 2019 at 14:23

btph said:
Does anyone know of a standardised form, or template, for claiming higher rate tax back on pension contributions? I dont do a self-assessment, and all the gov.uk site says is you must let HMRC know, so they can work out the sum they owe. But they don't even say what information is required. Any pointers?

I have a standard letter that my accountant gave me, and I've used it to claim back 4 years. Send me a Trust if you want a copy.

Trifid · 6 Jun 2019 at 14:41

Freddie1980 said:
Out of interest what did use as your rate of return on your investments? I've been using 7% as an average across the life of my pension but when I've checked on the actuals recent years have been around 14%! On the calculations I've done the ROI is the biggest driver, after about 12/15 years of paying in your returns should start to overtake your contributions. It's surprising just how much of a difference 1% on ROI makes as well, it may even mean being able to retire several years earlier.

You need to take the average over a longer period of time to take into account recessions.

Freddie1980 · 6 Jun 2019 at 16:28

Trifid said:
You need to take the average over a longer period of time to take into account recessions.

Of course you do but it is interesting to compare the actuals with the forecasted returns.

Zatoichi.uK · 6 Jun 2019 at 17:03

I put 4%, company puts 10%. The balance hasn't really moved in the last 6 months though. Annoying...

413x · 6 Jun 2019 at 18:09

Freddie1980 said:
Out of interest what did use as your rate of return on your investments? I've been using 7% as an average across the life of my pension but when I've checked on the actuals recent years have been around 14%! On the calculations I've done the ROI is the biggest driver, after about 12/15 years of paying in your returns should start to overtake your contributions. It's surprising just how much of a difference 1% on ROI makes as well, it may even mean being able to retire several years earlier.

What ever was default was. It was just one of those generic calcs. I'd guess at 3pc. But have no idea what returns on pensions are roughly