Pensions

[Life's A Pitch]

I've only got the compulsory pension that was introduced in the last year or so. We're also trying to overpay the mortgage which is something of a 'pension plan' but the Mrs keeps sticking things back on the mortgage like trips to vegas, loft conversions and fanny tucks which is kinda f***ing that plan right up. The fall back was always the wealthy(ish) outlaws but like an absolute weapon the father in law has suddenly decided to start blowing all his cash on Ranger Rovers and aeroplanes so he's gone right down in my estimations.

 

[cornish mackem]

Que?

Means tested benefits. If you have a few quid then you pay for your house and care, less than 20k or what ever the threshold is you get it all sorted.
The lumper on lots of pensions puts you over the savings threshold, then the selling of your assists to pay for everything seems very unfair on the people who have tried whilst working to put a few quid away. Unless you are very comfortable and can afford the £800 per week social care bill then saving during your working life seems a tricky one to justify.

 

[Horatio Pugwash]

Got a forecast of State Pension and it advised my Army Pension will mean my state pension is reduced when I get it in the future, so you will be the same, i would think. Because Army pension is outside of the national system.

Shocking

 

[Derby Mackem]

AVC's ?

So if you are in a company scheme (final salary or defined benefits) why would you not plough as much as you can into this given the tax relief on the contributions and that you will be able to take it all tax free (assuming you've not put in more than 25% of your total pot) Plus also boost your main pension ?

Any downsides @Shirley Shammel

 

[Guinness Guzzler]

I'm 33 and I've never looked into the whole pension thing. I know I should, if it isn't abolished, get a shit state pension. I also know that my work pays into some pension thing too. When I get my bonus I keep getting letters asking if I'd like to put some of it into my pension fund but I figure I'd rather have the money now when I can enjoy it. Hopefully by retirement age (if I'm not dead) I'll have been on good enough money and got enough randomly paid in by my employer to be fairly comfortable. I do feel like I should look into it mind!

 

[Jimmer13]

Shocking

Agree, but when I told them that told me to feck off.......told me it was unearned, like shite. Took some shit over my service as did others to earn that fecker.

 

[Its Him Again]

9 years in a bus drivers pension
13 years in a Barclays pension
Altogether worth around 100 quid a month pension.
I will cash in as much as I can.
Waste of time.
I'm working as long as health allows me.
I cannot sit still more than five minutes

 

[EDGE]

I'm 33 and I've never looked into the whole pension thing. I know I should, if it isn't abolished, get a shit state pension. I also know that my work pays into some pension thing too. When I get my bonus I keep getting letters asking if I'd like to put some of it into my pension fund but I figure I'd rather have the money now when I can enjoy it. Hopefully by retirement age (if I'm not dead) I'll have been on good enough money and got enough randomly paid in by my employer to be fairly comfortable. I do feel like I should look into it mind!

Do it NOW! The longer you leave it.

 

[Ricci's Special Kebabs]

9 years in a bus drivers pension
13 years in a Barclays pension
Altogether worth around 100 quid a month pension.
I will cash in as much as I can.
Waste of time.
I'm working as long as health allows me.
I cannot sit still more than five minutes

How can you contribute 22 years in a pension and it only be worth 100 quid a month?

 

[Slim999]

Why don’t you stop eating avacado toast and drinking Starbucks? Then you can buy a house.

I’ve never really grown up mate. It’s my money and I want to spend it.

But if you're employed your employers scheme should auto enrol you - and as the other poster points out they will match what you put in.
Even £ 1k per annum (£500 from you and £500 from employer) would among to over £50K with reasonable growth by the time you're 67.

If you're unemployed thats another story

 

[ir35]

How can you contribute 22 years in a pension and it only be worth 100 quid a month?

I was thinking that too.

 

[Slim999]

But if you're employed your employers scheme should auto enrol you - and as the other poster points out they will match what you put in.
Even £ 1k per annum (£500 from you and £500 from employer) would among to over £50K with reasonable growth by the time you're 67.

If you're unemployed thats another story

I see you are self employed - that does make it harder....

How can you contribute 22 years in a pension and it only be worth 100 quid a month?

Some pension schemes back in 80s and 90s were a complete rip off.

 

[3.142]

am now in what I think is a bizarre position of not contributing into my company scheme and in exchange being paid more. it's tax efficient and the extra money goes on mortgage overpayments.

14 years in a final salary scheme before that makes it easier longer term too.

Have always been pro pension though generally and would say put as much in as you can afford unless there is a compelling reason not to and never think it' too late (or early) to start.

 

[Its Him Again]

How can you contribute 22 years in a pension and it only be worth 100 quid a month?

The bus driver one was shit.
Barclays one I think I paid in 3%

 

[Billericay Dichio]

Lots of rich pensioners will need butlers.

 

[EDGE]

The bus driver one was shit.
Barclays one I think I paid in 3%

Did the employer contribute?

 

[Hongkongphooey]

Yeah.

I have a plan anyway. I’m gonna flog the house, travel the world with the proceeds and when I’m down to the last £1k I’m gonna spend it on heroin and bash it all in one go. The problem I have is convincing the missus that this is a viable and sensible plan.

You are my new 3rd favourite poster behind @vote quimby and @PhilSAFC

 

[Its Him Again]

Did the employer contribute?

Yes that's correct.
My prediction for government pension is about 145 quid a week.
If I pay in another 7 years it's about 160 a week I believe.
If I pay 20 years into the government pension here I'm told I will receive pension here also.
Not 100% confirmed but would be good.
If you work here all life you receive two thirds of your last three years average salary so I'm told.

 

[Deleted member 30053]

So what does it mean by the term Final Salary Pension?

My eyes tend to glaze over a bit when financial stuff is discussed so please keep it simple if you can!

So what does it mean by the term Final Salary Pension?

My eyes tend to glaze over a bit when financial stuff is discussed so please keep it simple if you can!

Final salary defined benefit (DB) schemes are occupational pension schemes that provide a set level of pension at retirement, the amount of which normally depends on your service and your earnings at retirement or in the years immediately preceding retirement. Other pensions will be invested and have a fund value.

9 years in a bus drivers pension
13 years in a Barclays pension
Altogether worth around 100 quid a month pension.
I will cash in as much as I can.
Waste of time.
I'm working as long as health allows me.
I cannot sit still more than five minutes

What years did you work for Barclays?

AVC's ?

So if you are in a company scheme (final salary or defined benefits) why would you not plough as much as you can into this given the tax relief on the contributions and that you will be able to take it all tax free (assuming you've not put in more than 25% of your total pot) Plus also boost your main pension ?

Any downsides @Shirley Shammel

There’s not really a downside to contributing more to your pension to provide a more comfortable retirement unless you can’t really afford it and are selling yourself short to pay into it.

You also of course get tax relief (how much depends on what you earn as you could fall foul of the tapered annual allowance if you are a high earned) as well which is great but it won’t all come out tax free. Just 25% of it with the rest used to produce income via drawdown, annuity etc.

 

[Its Him Again]

Final salary defined benefit (DB) schemes are occupational pension schemes that provide a set level of pension at retirement, the amount of which normally depends on your service and your earnings at retirement or in the years immediately preceding retirement. Other pensions will be invested and have a fund value.



What years did you work for Barclays?



There’s not really a downside to contributing more to your pension to provide a more comfortable retirement unless you can’t really afford it and are selling yourself short to pay into it.

You also of course get tax relief (how much depends on what you earn as you could fall foul of the tapered annual allowance if you are a high earned) as well which is great but it won’t all come out tax free. Just 25% of it with the rest used to produce income via drawdown, annuity etc.

2000 to march 2014 over 13 years