Pensions

[MarcoGoalo]

I’m going to be sorting my pension out after the year (draw down)..I had a brief chat with Shirley Shammel on here and he seems canny..anyone got any recommendations for advisors..I’ve spoken to a couple but haven’t committed.

Try @Billy Smart's Circus

 

[MonkeyLove]

Got a private pension that my employer pays in to. Financial advisor manages it and I track it on an app, the contributions are dwarfed by how much the value of the investments go up. I pay about 300 a month total employee/employer counts and it’s been going up about a grand a month. Best decision I ever made.

Contact Grahame at Complete Money Care.

You must have a very decent pot or your financial advisor must be sought after by every hedge fund going

 

[Botchie]

I pay in 6% and my employer pays in 12% - there’s not many companies that do that is there? Place is just pissing me off and thinking of looking elsewhere but not sure if I should if that is a better than normal pension.

You can transfer what you've saved. If your pissed off I wouldn't let a company pension stop me from moving jobs.

 

[MonkeyLove]

I pay in 6% and my employer pays in 12% - there’s not many companies that do that is there? Place is just pissing me off and thinking of looking elsewhere but not sure if I should if that is a better than normal pension.

That's a decent employer contribution

 

[arthursboy]

I’m going to be sorting my pension out after the year (draw down)..I had a brief chat with Shirley Shammel on here and he seems canny..anyone got any recommendations for advisors..I’ve spoken to a couple but haven’t committed.

Seek an independent adviser, not restricted, money saving expert has a link to a few local ones, first visit is usually free.
Draw down when you state you are sorting it, does that mean taking it all out and paying the tax ?
I retire next year, on a final salary, so don’t want to take the draw down option, just he 25% tax free option.

 

[42]

I pay the max of 6% at our place which is then matched.

I've moved it all into medium risk.

At 29, now considering adding some AVCs to it on a monthly basis but the fact those wont be matched is making me wonder if it's worth it - if the investments drop etc.

If youre only a basic rate tax payer, it could be worth looking at S&S ISA. As theyre quite similar in terms of investments.

In terms of tax theres little difference as pensions are tax deductable but have to pay the tax back when you receive them (apart from the 25% lump sum) but pensions are more beneficial if you get the 40% deduction but then just pay 20% on retirement.

But the ISA will give you greater flexibility as you can take it whenever you want so could be used as an early retirement bridging fund before you actually draw your pension.

If your worried about loss of investment you can get retirement specific ones where they start off with high % of equities then gradually shift over to bonds the closer you get to retirement.

 

[squashjoe]

I pay in 6% and my employer pays in 12% - there’s not many companies that do that is there? Place is just pissing me off and thinking of looking elsewhere but not sure if I should if that is a better than normal pension.

A local authority in London 4.5% v 22.5 % incredible.

 

[42]

A local authority in London 4.5% v 22.5 % incredible.

Employee rates arent that low

Your contributions :: LGPS

www.lgpsmember.org

 

[squashjoe]

Employee rates arent that low

Your contributions :: LGPS

www.lgpsmember.org

To be fair the person was on the 2nd or 3rd band there when taking another job in 2016. Still a great pension in local authorities.

 

[cornish mackem]

@kevinarnott

 

[Skandhaless]

Best thing I ever did was to start a private pension.
I started it off in my late 20's - and always topped it up to the max I was allowed to each year.
And when allowed to - paid-in lump sums too.
I took early retirement and I am on "draw-down" now - and reaping what I have sown.

I started one as a young un back in the early 80s paid about £30 less tax relief for about a year then had to stop as I joined a final salary scheme. Latest projection is about £300 pa. Not bad at all, nearly what I paid in in total back every year.

 

[Longy]

This ^^ I did the same, except I took out an annuity when annuity rates were high in 2008. Hargreaves Lansdown sorted my pot , and got me the best market return. I'd be knackered if I had to rely on state benefits. Raising the minimum wage fucks pensioners, as everything has to go up in price to cover it, but pensions don't go up by the same amount. It just brings extra tax revenue in for the government, its a con. Fuck any party that wants to increase the minimum wage.

Pensions go up in line with the average wage rise, if not higher.

However...

Peers call for removal of triple lock on UK state pension

Committee in the House of Lords recommend indexing state pension only to average earnings

www.ipe.com

 

[Fletch]

Draw down when you state you are sorting it, does that mean taking it all out and paying the tax ?
I retire next year, on a final salary, so don’t want to take the draw down option, just he 25% tax free option.

Drawdown can be as much or as little as you want mate , you decide .
If you are retiring on a final salary pension though this does not impact you . You will get a lump sum tax free (I assume) and then your annual pension just like a salary taxed before it hits your bank account

 

[Select coaches]

If youre only a basic rate tax payer, it could be worth looking at S&S ISA. As theyre quite similar in terms of investments.

In terms of tax theres little difference as pensions are tax deductable but have to pay the tax back when you receive them (apart from the 25% lump sum) but pensions are more beneficial if you get the 40% deduction but then just pay 20% on retirement.

But the ISA will give you greater flexibility as you can take it whenever you want so could be used as an early retirement bridging fund before you actually draw your pension.

If your worried about loss of investment you can get retirement specific ones where they start off with high % of equities then gradually shift over to bonds the closer you get to retirement.

You have to be very disciplined not to dip into it in an isa though. Very tempting this time of year to draw it all out and disappear to the Caribbean.

 

[Iballistic George]

I really have no idea what my employer contributes. I pay 200 a month into my pension and its a final salary one so I think I'll be OK come retirement.

 

[Hucknalls Fluffer]

You must have a very decent pot or your financial advisor must be sought after by every hedge fund going

In all likelihood once you have a pot in excess of £100,000 the market movements alone will be where you see the greatest gain (rather than your monthly contribution). Most of the major indices are pretty volatile at the minute so some funds may see 2-3% rise or fall in a day. If the markets are falling don’t panic, if you’re saving monthly it means your getting more units for your money!

 

[arthursboy]

Drawdown can be as much or as little as you want mate , you decide .
If you are retiring on a final salary pension though this does not impact you . You will get a lump sum tax free (I assume) and then your annual pension just like a salary taxed before it hits your bank account

Understand that, but you pay considerable tax if you withdraw more than the 25% in one year, it has to be pushed back into another pension and down down every year to limit the tax paid dependant on your annual salary.
Some of my mates are on a final salary pension but have decided to draw down the entire fund and push it back into there own investment pension, so it’s theres rather than in the company’s pension pot.
I prefer the guaranteed annual salary option, with the 25% tax free payment, I’m a very risk adverse person.
I’m no expert, got a couple of advisors booked after the new year to discuss the lump sum investment.

I really have no idea what my employer contributes. I pay 200 a month into my pension and its a final salary one so I think I'll be OK come retirement.

It’s rare these days to have a final salary pension so congrats, I’d still look to what that would be though when you retire as you could still push more in if you want.

 

[Iballistic George]

Understand that, but you pay considerable tax if you withdraw more than the 25% in one year, it has to be pushed back into another pension and down down every year to limit the tax paid dependant on your annual salary.
Some of my mates are on a final salary pension but have decided to draw down the entire fund and push it back into there own investment pension, so it’s theres rather than in the company’s pension pot.
I prefer the guaranteed annual salary option, with the 25% tax free payment, I’m a very risk adverse person.
I’m no expert, got a couple of advisors booked after the new year to discuss the lump sum investment.

It’s rare these days to have a final salary pension so congrats, I’d still look to what that would be though when you retire as you could still push more in if you want.

I really should get more clued up on it tbh. It's a railway one so one of the very few around these days.

 

[kevinarnott]

@kevinarnott

Whilst pensions are great for tax relief ie free money and employers contributions (more free money!), I think perhaps a better way of looking at the whole retirement issue is ‘cash flow when I’m not earning a salary/ running a business’.

That can be generated via various sources, obviously pensions, other invested capital (buy 2 let, ISAs, etc), state pension, business sale value, inheritance etc

Also, part retirement is not a bad option so that you don’t have to dip into what you’ve built up too much in the early years.

And if you’re paying into a workplace pension, under no circumstances should you simply accept the default fund options (must people do) as where your money is invested is the key, not the fact that it’s in a pension wrapper.

*I’m an IFA

 

[SPUFF]

What sort of a pot would you want to jack in late 50s?
Considered this n have no idea!