MK5 Golf GTI
General => Random Chat => Topic started by: Andy on November 23, 2012, 10:44:13 pm
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Now with the state of pensions at the minute is it worth puttting a lot of money into them and come the time you retire your not entitled to any thing because of your private pension..
I have a scheme at work where we pay half and the comany pays the same but i was thinking of paying more money into it so have can line comfortable when i retire :happy2:
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I'm still counting on winning the lottery at some point.
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I'm still counting on winning the lottery at some point.
that is a better idea :signLOL:
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I pay 3% of my wage a month into a pension through work and they match it.
But when the pension company rep explained that if I got a 3% pay rise Every year then my pension would payout just over £1000 a month, but i have only had 2% pay rises the last 2 years and nothing the year before (work uses the recession as the reason for low pay rises but for the last 3 years they keep breaking the sales records for the company)
I don't think £1000 a month will be worth much in 30-40 years when I retire, And I doubt there will be any state pension (even though I have paid into it for the last 17 years)
I have to get on the property ladder very soon so that I can have a mortgage paid off and save like f**k before I retire or I will be proper screwed, the councils have stopped giving houses to British people and there is now way I could pay private rents on a £1000 pension in 30 years time!
On the other hand hopefully I win the lottery by then :laugh:
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Pension is a tax break, put as much as you possibly can afford into one because you're going to need it when you're older.
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Pension is a tax break, put as much as you possibly can afford into one because you're going to need it when you're older.
This is correct - if your putting in 3% (before tax) & somebody else is putting in another 3% it's a no brainier, do it.
If you don't put in now, don't come on here in 35 years time moaning you can't afford to buy an electric GTi or pay your electric bill (because it'll cost about the same):evilgrin:
I wish somebody would double my cash ISA every time I buy one, each year
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Pensions with private companies are always going to be a risk. I pay 13.7% of my pay now and have paid 11% of my pay into my Pension . Its also index linked to cpi used to be rpi.
I would pay your maximum ISA allowance every year into a cash isa , this money will always earn you tax free income when you retire. I think at the moment ISA rates are low as the Bank of England is letting banks have money fairly cheaply and bank have not had to offer good rates to savers to give them their money . As things get better i believe these rates will rise and also the Govt will want to encourage people to invest in their pension/future more as they will not be able to afford to pay a decent pension.
Paying money into a pension pot at the moment means on maturity you have to buy an Annuity . It gives your money away to another private company who then pay you an amount for the rest of your life . This i think is also dangerous as it is with a company which could go bust .
Property has always seen to be a good investment and in London is still is . I would not say it is elsewhere but who knows.
Planning for the future is a nightmare . I have done 30 years in a job i thought i would never do as a youngster just to get a good pension ! The job turned out better than i had imagined too .
Another thing i didn't know is that if you are paid a pension you don't have to pay National Insurance contributions on it whatever age you receive it. Thats increased my monthly amount by 10% ish
If you speak to 100 people you will get 100 different answers !
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saving for the retirement is always a good idea!
However no matter how much you pay your standard of living as a pensioner will never be the same as when you work.
Usually pension is ca 30-40% of your salary in most european countries....
Best to keep a balance and enjoy your life while saving at the same time
If you save plenty now you might not get enjoyment from life. If you spend all now you might regret it once you retire
There is no right or wrong answer now as it's very subjective
Paul
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All my spare cash is going towards rental properties, that hopefully should have paid themselves off by the time I retire. They can either provide a stable income when I retire, or be sold for lump sums for kids' weddings etc. when needed.
My logic is that under new NHS pension rules I'll have to pay way more anyway, and it's only going to get worse. On that basis I've already withdrawn. Might as well pay as much as I want as often as I want and get a better outcome.
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I met a pension top-up firm and the lass asked me whether I really believed the state pension would be available to me when I retire. I had to agree that it will most likely be means tested in the not too distant future.
People are living too long nowadays and the Government won't be able to afford a state pension for everyone.
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All my spare cash is going towards rental properties, that hopefully should have paid themselves off by the time I retire. They can either provide a stable income when I retire, or be sold for lump sums for kids' weddings etc. when needed.
My logic is that under new NHS pension rules I'll have to pay way more anyway, and it's only going to get worse. On that basis I've already withdrawn. Might as well pay as much as I want as often as I want and get a better outcome.
I doubt you can beat a NHS pension , its similar to mine and anything private cannot come close . You don't get tax relief on buy to lets either , but as i said earlier "ask 100 people get 100 answers" :happy2:
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under current rules, no you can't beat it. but it was changed once during my time at uni, and now it's been changed twice since i graduated in 2010. i've got a minimum of 40 years of service to the NHS left before i'll retire with a full pension, which is also likely to increase to 45 years by the time i get there. for me, it's not worth it in the long run. every time there's a dip in the economy, we'll get shafted, but when it picks up again the rules won't change to benefit us. much rather put my money aside into something that's more definite. markets can collapse, demographics can change, pension companies can go bust. but bricks and mortar will always be worth something, and in the long term will always be a good investment on our overcrowded little island.
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Pension is a tax break, put as much as you possibly can afford into one because you're going to need it when you're older.
+1 :happy2:
If you have a company willing to pay into a pension also then take it, if you say no thanks they are not going to just give you it.
I pay 3% of salary at present and work pay in 7% into my pension and as i get older it increases. At 34, i will pay 4%, work 8%.
Had the girlfriend and future sister in law accept their employer offers, as by the time i reach state retirement age which is now 68 for me, (born 82), who knows what will be left if at all. I personally do not want to be working until im 68 to rely on a state pension that may not exist.
Something for the future - you may also look to pay additional amounts in, as and when you have pay rises. If i were to contribute an extra 1% of salary it would make approx £1800 p/yr difference in pension pay come 60.
Other options as above are rental properties, friend has 4 already at 32, so he is doing well, but if what ever reason they become empty make sure all costs can be covered by yourself.
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It's becoming time for me to think far more seriously about the future.
My pension is being screwed with this year (not in my favour obviously)
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My life plan...
Keep working... don't retire.... then snuff it. :signLOL:
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My life plan...
Keep working... don't retire.... then snuff it. :signLOL:
best plan ever :signLOL:
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My life plan...
Keep working... don't retire.... then snuff it. :signLOL:
best plan ever :signLOL:
don't laugh too much that will be government policy in ten years
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I'm with Karma pensions.
What ever I put in, I get back 3 fold :laugh:
Seriously though, the company I work for has been taken over many times and the pension changes more often than not. When I started work I was on a final salary pension, then a "Care plan" policy then another and another etc.
Now, imagine putting an order in for a brand new MKXXXX Golf GTI and being told you would have to pay monthly for it BEFORE it arrived, you agreed the car would be fully specced with all the options ticked and you duly read and signed the contract. You started paying for it and then a representative came along and said "I'm sorry sir but the cost of your car has gone up due to the market forces". You choke and agree to pay more in the hope of that glorious MKXXXX Golf GTI being delivered. Later the representative comes back and says "I'm sorry sir but the delivery time has been extended and you'll have to wait longer". You choke again and bite the bullet and agree to wait longer. Shortly after a representative comes to you and says " I'm sorry to be the bearer of bad news again sir, but due to market forces the car has had to have the options removed and you will only receive a basic MKXXXX Golf GTI AND it will still cost you a little more to have it". Vomit inducing forces act on your body, but you fight them back and just think of the day you can sit in that brand new MKXXXX Golf GTI and enjoy it to the full, so you duly agree to carry on waiting. Then the week before you are due to accept delivery and have paid all your money in a representative arrives and tells you " I'm sorry to be the bearer of bad news, but due to unforseen circumstances the car you will now receive will be a remote control scale model, you will have to pay extra for the engine to go in it and the batteries will run out after the first week and there are no replacements. The good news is the government can supply you with batteries at a monthly cost that will make it impossible for you to continue living for too long!!
The End.
Draw the similarities where you will, but they are there. :fighting:
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under current rules, no you can't beat it. but it was changed once during my time at uni, and now it's been changed twice since i graduated in 2010. i've got a minimum of 40 years of service to the NHS left before i'll retire with a full pension, which is also likely to increase to 45 years by the time i get there. for me, it's not worth it in the long run. every time there's a dip in the economy, we'll get shafted, but when it picks up again the rules won't change to benefit us. much rather put my money aside into something that's more definite. markets can collapse, demographics can change, pension companies can go bust. but bricks and mortar will always be worth something, and in the long term will always be a good investment on our overcrowded little island.
Ah yes i see why now , you are young ! ......I get my pension next July :happy2:
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under current rules, no you can't beat it. but it was changed once during my time at uni, and now it's been changed twice since i graduated in 2010. i've got a minimum of 40 years of service to the NHS left before i'll retire with a full pension, which is also likely to increase to 45 years by the time i get there. for me, it's not worth it in the long run. every time there's a dip in the economy, we'll get shafted, but when it picks up again the rules won't change to benefit us. much rather put my money aside into something that's more definite. markets can collapse, demographics can change, pension companies can go bust. but bricks and mortar will always be worth something, and in the long term will always be a good investment on our overcrowded little island.
Ah yes i see why now , you are young ! ......I get my pension next July :happy2:
don't worry, my knees and memory are going already :ashamed:. and i have white hairs coming through!
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under current rules, no you can't beat it. but it was changed once during my time at uni, and now it's been changed twice since i graduated in 2010. i've got a minimum of 40 years of service to the NHS left before i'll retire with a full pension, which is also likely to increase to 45 years by the time i get there. for me, it's not worth it in the long run. every time there's a dip in the economy, we'll get shafted, but when it picks up again the rules won't change to benefit us. much rather put my money aside into something that's more definite. markets can collapse, demographics can change, pension companies can go bust. but bricks and mortar will always be worth something, and in the long term will always be a good investment on our overcrowded little island.
Ah yes i see why now , you are young ! ......I get my pension next July :happy2:
:signLOL: Classic!
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If a company pay a % then your stupid not to match it - I did this for a years and has given me a good start.
Things change though, its been approx. 5 years since I last paid into my pension (since leaving the above company) but in that time I decided to setup my own business, extended my house and had a family ... you take your gambles, I say don't pay too much that you cant enjoy life now, give and take.