This is the way that the world works. It is not a zero sum game. My pennies are nothing compared to the billionaires of the world.
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Poll: Pensions - Are you worried about the future?
- Thread starter SideWinder
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Soldato
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With no work day to day, I'll have more time to do stuff. The **** am I supposed to do? Sit and watch daytime TV all day? Nah man, I want to get out. Spend time with the kids, with family. Go away. All costs $$
Soldato
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I don't se it like this for me. My old man has his wife (not my mum) and they have no more kids, just my sister and I. He's got about £1.5m in property I'd say and I don't care about any of it. I'd rather he sold it to live now than skimped on his life! I'm certainly not after it. I don't give two *****. Same as my mum and step dad. If they need to sell property to live like they want and support their lives, do it. My step brother got sick a few years ago and asked them for his inheritance early... it caused a big family drama as you can imagine, because it's never liquid money and it's not something you are entitled to in anyway whatsoever!
Everyone wants to live on growth or dividends and maintain their lifestyle without depleting their assets, it may not work though. Lets face it if you plan to live 30 years after retirement you could see several 50+% drawdowns of capital value in that time and it is extremely unlikely anyone retiring in the future will live through another 12 year bull run fuelled by insane QE and ultra low rates.
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I shall most definitely be spending the capital when I take my pension. No ****s given either.
No point being the richest corpse in the graveyard. (or richest dust in an urn
)bUt tHe mArKeT aVeRaGeS tEn pErCeNt
Soldato
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Damn skippyNo point being the richest corpse in the graveyard. (or richest dust in an urn
Caporegime
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I am not really up on pensions and what not but I guess those who have large pots are doing so because of tax reasons to put a lot in?
I mean if I could afford to be putting thousands away a month into a pension I would have thought building up a portfolio of housing to rent would be a better option? Around here at least you could get a decent terraced house for around 150K that will give you 700 a month easily. Plus when you do eventually retire you can sell the house for the capital which I would have thought would be worth far more than a pension?
We can be Mortgage free in 4 years at 40. Is it worth starting a pension then and putting the Mortgage money into that or saving up for a chunky deposit on a BTL?
I mean if I could afford to be putting thousands away a month into a pension I would have thought building up a portfolio of housing to rent would be a better option? Around here at least you could get a decent terraced house for around 150K that will give you 700 a month easily. Plus when you do eventually retire you can sell the house for the capital which I would have thought would be worth far more than a pension?
We can be Mortgage free in 4 years at 40. Is it worth starting a pension then and putting the Mortgage money into that or saving up for a chunky deposit on a BTL?
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For high rate tax payers, pensions give you an immediate 40% return on your investment (closer to 45% if you include NI etc too). That's very hard to match anywhere else in terms of investment / returns.
Substantial savings for those just nudging 100k with kids too (£2k government childcare allowance/30 hours free childcare).
Employer contribution matching and tax relief mean whatever I would have received after tax is roughly tripled. That's before any investment growth. I would start contributing now, not in 4 years - especially if your employer has a reasonable matching policy.
That £700 won't go very far after income tax, maintenance, letting agent fees, insurance and interest on mortgage is taken away. It wouldn't come close to covering a repayment mortgage, for example.
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I want to leave my kids in a better financial position than I was/will be. You're welcome to do with your money as you wish.No point being the richest corpse in the graveyard. (or richest dust in an urn
In the USA, if your employer's 401K plan has provision for the "Mega backdoor Roth 401K", you can currently save about $62,000 after tax per year (including employer match) and none of the growth is taxed at retirement. Tax law could change in the future, of course, where the growth is taxed, but right now, it's not. With 401K savings, you can roll them over into other individual retirement accounts and use the funds to buy property as well, for example. The money doesn't just have to be invested in equities.
It's unfortunate that the lifetime pension allowance limit is so low in the UK, and I hope that the Government changes that soon. As far as I know, there's no limit in the USA.
I just read this morning that the US Social Security system will run dry in 2034, and not be able to pay out all of its liabilities. This makes me wonder if the UK state pension scheme will be in a similar position before I retire in ~2050.
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Soldato
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Mid 30s. I have a small NHS pension (mixed of 2008 and 2015 schemes) but am currently contracting. I also have £40K in a SIPP via Ltd Co. Don't really know how long I'll continue contracting for or whether I'll get a regular job (salaried/PAYE or sole trader set up) so as a consequence pension is a big unknown variable. We also have a small number of buy to lets to cover the lack of pension. Although not really focused on retirement planning too much at this stage we've just been spreading the bets I feel given the uncertainty. And now we have the market and mortgages fiasco to add to this! Depending on the route the LTA may well be a big ball ache too!
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Caporegime
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I already have an employer pension but I was just thinking what to do when the mortgage is finished as we will still be relatively young and have 25 ish years till retirement.
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pay more into your pension.
What % do you/your employer contribute at the moment?
Caporegime
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5% me 3% employer which is more than likely the minimum. My old one was a lot better but have recently changed jobs with better pay but worse pension.
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Personally I'd up that considerably before thinking about diversifying into additional properties or anything else.
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not worth checking what my pensions worth, ill check it when im ready to retire lol . it might be a silly way of looking at it but, i put 7.5% in and so dose my employer. if i loose some money on it then the way i look at is its money lost from what my employer put in and not the money i earned. i was going to up from 7.5% but i decided to scrap that idea with everything rocketing in price
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