Pensions

theone8181 · 27 Oct 2023 at 13:05

Hagar said:
I have a bit over 25k now and it is comfortable, my wife has just begun drawing her state pension now as well. It depends what you really want but yes 25k in twenty years will be halved in value at least. Will you have paid your mortgage off by then.

Oh yea, there's only about 15 years on it. The other thing (which is going to sound morbid), is that my parents aren't likely to be around in 20 years (my mum is 74).

aardvark · 27 Oct 2023 at 13:08

200sols said:
The pension age is increasing to 57 in 2028 and it may well go higher before you are 55.

what?

Pipe & Slippers · 27 Oct 2023 at 13:08

theone8181 said:
Oh yea, there's only about 15 years on it. The other thing (which is going to sound morbid), is that my parents aren't likely to be around in 20 years (my mum is 74).

Best not to count on that, but treat anything you may get as a bonus when it does happen

Hagar · 27 Oct 2023 at 13:11

theone8181 said:
Oh yea, there's only about 15 years on it. The other thing (which is going to sound morbid), is that my parents aren't likely to be around in 20 years (my mum is 74).

Agreed, I am 71 so in a similar boat.

However if one or both became incapacitated and needed residential care for say 5 to 10 years, is that affordable?

20 years gives great scope for the application of Murphys law.

theone8181 · 27 Oct 2023 at 13:17

I've found the responses pretty informative on here, it's difficult to try and plan for the future. I'm doing what I can by paying in a decent amount to my pension now. I just hope it's OK, but only time will tell. The parents one is interesting, as none of my grandparents needed care, but obviously there's no hard rules on what will happen.

Foghorn Leghorn · 27 Oct 2023 at 13:21

aardvark said:
what?

200sols said:
The pension age is increasing to 57 in 2028 and it may well go higher before you are 55.

Minimum age at which you can access your personal pension is rising from 55 to 57 in 2028

413x · 27 Oct 2023 at 13:21

theone8181 said:
I've found the responses pretty informative on here, it's difficult to try and plan for the future. I'm doing what I can by paying in a decent amount to my pension now. I just hope it's OK, but only time will tell. The parents one is interesting, as none of my grandparents needed care, but obviously there's no hard rules on what will happen.

Made me think about it a bit more.. I should have already.
Not looking forward to it. Probably won't have enough to live well. A lot depends on the state pension and when it kicks in when/if I get there.

Plan to unlock house equity when I do as I'll be mortgage free. It'll be needed!

throwaway4372 · 27 Oct 2023 at 13:23

I wish predicting the future was easier.

theone8181 · 27 Oct 2023 at 13:25

throwaway4372 said:
I wish predicting the future was easier.

I need mystic meg :cry:

. I'm trying to ignore state pension as that's about 40 years for me (untill they change it again), and I'm not sure it will even exist at that point.

Mr Jack · 27 Oct 2023 at 13:26

This is the kind of thing you should go to an actual financial advisor about instead of listening to idiots on the internet.

Personally, I think you should sell it and buy a pig.

theone8181 · 27 Oct 2023 at 13:27

Mr Jack said:
This is the kind of thing you should go to an actual financial advisor about instead of listening to idiots on the internet.

Personally, I think you should sell it and buy a pig.

Are you sure? I heard there were some magic beans for sale

.

Mr Jack · 27 Oct 2023 at 13:29

theone8181 said:
Are you sure? I heard there were some magic beans for sale .

Feed them to the pig is my advice.

DarrenM343 · 27 Oct 2023 at 13:37

Mr Jack said:
This is the kind of thing you should go to an actual financial advisor about instead of listening to idiots on the internet.

Personally, I think you should sell it and buy a pig.

They'll google it probably and come across the responses on this forum and tell OP the same stuff

minus the magic beans and pig comments, hopefully!.

Joking aside, seeking financial advice is best thing to do. General rule of thumb, final salary schemes should not be transferred I think.

aardvark · 27 Oct 2023 at 13:42

Foghorn Leghorn said:
Minimum age at which you can access your personal pension is rising from 55 to 57 in 2028

ahh

throwaway4372 · 27 Oct 2023 at 13:45

kind of ridic that 55/57 limit even exists, should be able to take it whenever you've got enough

theone8181 · 27 Oct 2023 at 13:46

throwaway4372 said:
kind of ridic that 55/57 limit even exists, should be able to take it whenever you've got enough

That's my thoughts. Should be on the individual if they don't budget accordingly.

Uther · 27 Oct 2023 at 13:49

The other issue with transferring a DB pension is very few advisors want to do it, and the ones that do will charge you handsomely for the privilege.

Mr Jack · 27 Oct 2023 at 13:49

throwaway4372 said:
kind of ridic that 55/57 limit even exists, should be able to take it whenever you've got enough

You can, but you don't get the tax benefits provided to pensions. Those benefits are not intended to help people opt out of the work force early.

Uther · 27 Oct 2023 at 13:51

throwaway4372 said:
kind of ridic that 55/57 limit even exists, should be able to take it whenever you've got enough

For that you have ISA's...

Pipe & Slippers · 27 Oct 2023 at 14:07

throwaway4372 said:
kind of ridic that 55/57 limit even exists, should be able to take it whenever you've got enough

The question is, what's enough?
You'd have folks retiring and then falling back on State provision 'cos they'd blown it all
As Mr Jack alludes to above, you get the Tax relief on contributions in an attempt to prevent this