Your Pension.

I'm very worried for people my age (20). A lot of them (including me) work low-wage shift work, not sure what they're earning one week after the other and to be frank hardly have a spare penny to put into a pension. I wonder what these people will do - work until they drop? I'm more lucky in that my family helped me buy a flat to live in so i have only £230 rent costs a month and so can afford a small pension contribution.
 
trackrat said:
Whatever you do with that pension do not take it at 50, for every year before your retirement age you loose a certain percentage of your pension pot, I am not up to speed any more on the pension side, but from what I remember you could loose up to 60% of you pension pot by taking it at 50.
I would certainly get some figures if you are thinking of taking that pension at 50, and get quotes for 55, 60 and your retirement age and see the difference.
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This. Legislation allows a final salary scheme to be reduced by up to 8% for every year that it is taken early.
 
ndaar said:
I started a pension at 30 to retire at 55. Im self employed so thought I better start something. Alongside that I put money every month into a share portfolio which is heavily dividend focused to also produce an income at retirement.
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Any reason why you've chosen a higher income dividend strategy before you've retired, or are you close to 55 now?
 
The_Abyss said:
This. Legislation allows a final salary scheme to be reduced by up to 8% for every year that it is taken early.
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I too could have taken it earlier (at 55) but was advised to wait until 60 when their would be no penalty under the rules of the pension fund when I started paying into it. I paid 6% throughout my time with that company until it was sold and the pension deferred.

I took the 25% lump sum tax free but pay 40% tax on the annual income as I still work and will until 65 at least.
 
I pay 6% a month into mine, and my employer matches my 6%.

Been paying into one since I started work at 18, now 25.

I've got a pension with my previous employer which will pay me about £1200 a year so not a great deal.

I don't plan on being at my current employer for much longer, 1 or 2 years at the most, obviously, if I keep going at this rate i'm going to end up with 20 different pensions by the time I hit retirement age.

Is that kind of thing normal or is there another way around it where I can have a single pension?
 
I am resigned to the fact, i will not be able to retire till i am 68, I am 43 now and have about 15 years of pension payments behind and the crap army one.

As someone pointed out, some people are making significant amounts of money on the back of my pension money. It is no longer the young paying for the old its, the young paying for the middle man, who takes a huge % in dividends who then passes on a small % of that to the current old. I have no issues paying for the current generation of old folk and there care. I do have issues with the city of London taking a huge & of the profits.
 
trackrat said:
Whatever you do with that pension do not take it at 50, for every year before your retirement age you loose a certain percentage of your pension pot, I am not up to speed any more on the pension side, but from what I remember you could loose up to 60% of you pension pot by taking it at 50.
I would certainly get some figures if you are thinking of taking that pension at 50, and get quotes for 55, 60 and your retirement age and see the difference.
Click to expand...

I was just explaining the pension I have, I will be looking into figures etc as I get older and will wait until I am at least 55.
 
nkata said:
I too could have taken it earlier (at 55) but was advised to wait until 60 when their would be no penalty under the rules of the pension fund when I started paying into it. I paid 6% throughout my time with that company until it was sold and the pension deferred.

I took the 25% lump sum tax free but pay 40% tax on the annual income as I still work and will until 65 at least.
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Wise advice. Wiser advice would be to take it only when you need to. 6% for a final salary scheme - that shows how things have changed and are more realistic now.

25% PCLS is standard, income tax levels are too.
 
I'm 27 atm. Work pay 6% and I pay 4%. I was contemplating on upping to 6% if I get a new role I'm being interviewed for in April but I'm not sure I'll bother now what with the state of pensions and the probability that it will be worth naff all when I come to retirement age. I might just top myself when I hit 70 and save everyone the burden and hassle.
 
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