Personal pensions - Do you pay into one?

[Gavin John Hyde]

If you are coming upto retirement age now. You could work part time doing eicrs and make a nice amount. Not huge sums but certainly supplement any state or private pension.
That said i know an old guy who took a job in waitrose on the tills for 20 hours a week. Loves it. Pay isnt too bad considering and he gets discount so his wife is happy

 

[andyb]

I am worried Rishi Sunak is talking about raiding the state pension pot to help pay for this bloody mess we are in.

There is no pension pot to raid, the state pension is paid from taxes.
It's been reported that he's considering reducing the lifetime allowance to £800K, probably doesn't concern anyone here. Or, reducing the higher rate tax allowance from 40% to 20%, long overdue IMO, or introducing an employer's tax on pension contributions.

 

[Dustydazzler]

I also think people of our generation want a much more lavish retirement? So will have to make provision for it personally?

when I think back to my grandparents their retirement was very very different, they lived in an old bedsit council flat, they had no car and never went on holiday. They both drew a state pension, neither had any private income. I still remember vividly they had an old biscuit tin under the bed stuffed full of five and ten pound notes my grandfather saved up. They both lived off this cash until they eventually both died. They had nothing in the way of assets other than the old furniture in the flat and the tv. Even their washing machine was rented from the council.

 

[DPG]

I also think people of our generation want a much more lavish retirement? So will have to make provision for it personally?

when I think back to my grandparents their retirement was very very different, they lived in an old bedsit council flat, they had no car and never went on holiday. They both drew a state pension, neither had any private income. I still remember vividly they had an old biscuit tin under the bed stuffed full of five and ten pound notes my grandfather saved up. They both lived off this cash until they eventually both died. They had nothing in the way of assets other than the old furniture in the flat and the tv. Even their washing machine was rented from the council.

Absolutely. A lot of people these days aren't content unless they have the latest stuff and 3 foreign holidays year.

And don't forget, the pension system was fine back then, when a lot of people didn't live much longer than retirement age. But with healthier lifestyles and better healthcare/treatments etc it's not at all uncommon to live into your 90s now.

 

[i=p/u]

Watever will be will be, and probably never stop working til ya clunk it. I dont worry about this stuff.
And why most people opt out is cause the minimum wage is low enough never mind another 30 comming out per week... was stupid move to say we've fixed a problem but ya can opt out..

 

[pc1966]

I have some pension in one scheme via previous university employment, and some via a private pot for when I was a one-man company. I doubt either will pay me much, but I suspect I won't have huge costs then either.

I would say diversity, have a pension scheme but if you can also have some money put in property (as suggested above) if you can do stuff up in your 'spare' time and have tradesfolk you trust not to rip you off for the stuff you can't do.

 

[D Skelton]

If you start investing at the age of 30 just £100 per month in a relatively safe and diversified ETF with a conservative average annual growth rate of just 15%, by the time you're 60 you'll have over half a million pounds.

 

[Zerax]

There is no pension pot to raid, the state pension is paid from taxes.
It's been reported that he's considering reducing the lifetime allowance to £800K, probably doesn't concern anyone here. Or, reducing the higher rate tax allowance from 40% to 20%, long overdue IMO, or introducing an employer's tax on pension contributions.

Or... if he really wants to sort things out... he should overhaul the public sector gold plated pensions system. I know so many people that have retired at 50 (or thereabouts) with a massive lump sum and gratuitous pension. How can it be right for someone to receive a pension for more years than they actually worked for ??? It's crazy.

 

[rapparee]

I'm putting in just over £50 a week and my employer is putting in half that.

I have bits of pots here there and everywhere, I really need to get round to consolidating everything into the one.

 

[Deleted account]

I'm putting in just over £50 a week and my employer is putting in half that.

I have bits of pots here there and everywhere, I really need to get round to consolidating everything into the one.

I looked into the consolidation as I have two old pensions floating around. I was informed that it was not viable as the fees to do so would eat into the pension.

 

[DPG]

I looked into the consolidation as I have two old pensions floating around. I was informed that it was not viable as the fees to do so would eat into the pension.

Same here for a small pot that I've got. Advisor said fees would be excessive compared to the fund value.

 

[pc1966]

Same here for a small pot that I've got. Advisor said fees would be excessive compared to the fund value.

I had been wondering about that myself and suspected it would not be worth it, so useful to know.

 

[telectrix]

You aren't forced to buy an annuity for the whole pot. There are options to take a percentage as a lump sum. And you have a much wider choice of how old you are when you cash it in.

i found this out. 6 months after Mrs. Tel cashed in a pension ( 25% lump, rest a bloody annuity), the return on the annuity means she''ll need to live to 140 just to get her money back. bloody scam.

 

[SJD]

Re charges for transferring, are these exit penalties from the original provider. or fees from an "advisor" for arranging a transfer? Exit penalties sometimes exist especially on older schemes, and you can't do much about. Advisor fees you can maybe do the admin yourself with no fee, unless perhaps an old final salary (defined benefit) scheme where "advice" is mandatory before a transfer can be accepted.

 

[DPG]

Re charges for transferring, are these exit penalties from the original provider. or fees from an "advisor" for arranging a transfer? Exit penalties sometimes exist especially on older schemes, and you can't do much about. Advisor fees you can maybe do the admin yourself with no fee, unless perhaps an old final salary (defined benefit) scheme where "advice" is mandatory before a transfer can be accepted.

Must admit I can't remember. I'm due a pension review so when I get it booked in I'll find out.

 

[SJD]

Must admit I can't remember. I'm due a pension review so when I get it booked in I'll find out.

If you have all the original paperwork from when you joined the old scheme (hopefully yes!), then careful reading should reveal anything like exit penalties. If you get a paid advisor to review it for you, I suppose it is only fair they expect a fee for doing any admin.

 

[DPG]

If you have all the original paperwork from when you joined the old scheme (hopefully yes!), then careful reading should reveal anything like exit penalties. If you get a paid advisor to review it for you, I suppose it is only fair they expect a fee for doing any admin.

I've got all the paperwork. But I can get free advice so I'll see what he says. To be fair to him he's told me at least twice before, but I keep forgetting!

 

[Boat_Boy]

Look for a good Independant Financial Advisor and take advice.

Everbody's circumstance is different, and want to do different things.

There are pro's and con's no matter what you do.

If you do things right then you can have a good retirement and pass what's left on, if not the Tax man will cometh and take a big chunk.

B