hippo Posted November 17, 2017 Share Posted November 17, 2017 I currently pay £220 pm - and having been paying into this for 14 years at a similar level ..... I was staggered how little this gives me....... So guesses below please - there are 2 elements Lump Sum Annual pension (you are allowed to read the daily mail/express before entering your guesses) Link to comment Share on other sites More sharing options...
WhatAboutTheFinish Posted November 17, 2017 Share Posted November 17, 2017 £15k lump sum and £2.5k pa....close? Link to comment Share on other sites More sharing options...
hippo Posted November 17, 2017 Author Share Posted November 17, 2017 4 minutes ago, WhatAboutTheFinish said: £15k lump sum and £2.5k pa....close? Yes .......very close.......Shite isn't it ? Link to comment Share on other sites More sharing options...
brommy Posted November 17, 2017 Share Posted November 17, 2017 Taken at what age? Link to comment Share on other sites More sharing options...
hippo Posted November 17, 2017 Author Share Posted November 17, 2017 Just now, brommy said: Taken at what age? 60 Link to comment Share on other sites More sharing options...
Paddywhack Posted November 17, 2017 Share Posted November 17, 2017 (edited) Hmm, I don't understand pensions at all so please excuse my daft questions. You may as well have just been saving that money under your bed then? How has this scheme helped at all? £2.5k a year is ridiculous. Inflation is taken into account though, surely? That's going to be even less than nothing in 10, 20, 30 years. Edited November 17, 2017 by Paddywhack Link to comment Share on other sites More sharing options...
brommy Posted November 17, 2017 Share Posted November 17, 2017 11 minutes ago, hippo said: 60 Are the figures you've been given based on contributing in to your pension up to 60 or are they the benefits you have accrued to date, i.e. what you'd get at 60 if you stopped paying in now? Link to comment Share on other sites More sharing options...
hippo Posted November 17, 2017 Author Share Posted November 17, 2017 2 minutes ago, Paddywhack said: Hmm, I don't understand pensions at all so please excuse my daft questions. You may as well have just been saving that money under your bed then? How has this scheme helped at all? £2.5k a year is ridiculous. Inflation is taken into account though, surely? That's going to be even less than nothing in 10, 20, 30 years. Yes thats my thoughts - and £220 is a lot out of my salary. I might pull out of the scheme TBH - I don't see the point - if you can't retire on what it provides then whats the point ? Link to comment Share on other sites More sharing options...
hippo Posted November 17, 2017 Author Share Posted November 17, 2017 3 minutes ago, brommy said: Are the figures you've been given based on contributing in to your pension up to 60 or are they the benefits you have accrued to date, i.e. what you'd get at 60 if you stopped paying in now? I think (and hope) its the current value - but because they have altered the scheme any payments I make after next year I don't get until im 67 ! - so at 60 that's pretty much what I m getting Link to comment Share on other sites More sharing options...
brommy Posted November 17, 2017 Share Posted November 17, 2017 1 minute ago, hippo said: I think (and hope) its the current value - but because they have altered the scheme any payments I make after next year I don't get until im 67 ! - so at 60 that's pretty much what I m getting How old are you? Link to comment Share on other sites More sharing options...
hippo Posted November 17, 2017 Author Share Posted November 17, 2017 Just now, brommy said: How old are you? 55 Link to comment Share on other sites More sharing options...
Popular Post dAVe80 Posted November 17, 2017 Popular Post Share Posted November 17, 2017 My pension plan is to either win the lottery, or buy a shot gun and go for a walk in the woods. 5 3 Link to comment Share on other sites More sharing options...
hippo Posted November 17, 2017 Author Share Posted November 17, 2017 What I can't understand is why it is considered good ? - its very expensive , and provides nowhere near enough - and on the statement it says the employed contributes a good whack - yet I seem to be barley breaking even on my own contributions Link to comment Share on other sites More sharing options...
lapal_fan Posted November 17, 2017 Share Posted November 17, 2017 5 minutes ago, hippo said: What I can't understand is why it is considered good ? - its very expensive , and provides nowhere near enough - and on the statement it says the employed contributes a good whack - yet I seem to be barley breaking even on my own contributions It's almost like it's worth just throwing that money into stocks and shares.. At least then you'd have some control on what you invested your money on, and you alone would be responsible for the end value.. That much money, paid in over (I don't know how many years) does almost seem pointless. I feel for you man, I think regular joes like us are in for a bad time, my retirement age is 67! (30 now). Link to comment Share on other sites More sharing options...
brommy Posted November 17, 2017 Share Posted November 17, 2017 10 minutes ago, hippo said: 55 Another 5 years contributions should add a fair bit to your benefits. Also, don't forget you aren't paying income tax and national insurance on the £220/month that goes into your pension pot. If you stop your pension contributions you won't have an extra £220 per month to save toward your retirement because after tax (lower rate) and NI your 'take home' will increase by just less than £150. I'd think very carefully before stopping your contributions. I suspect most decent IFAs would advise you continue to contribute. Link to comment Share on other sites More sharing options...
hippo Posted November 17, 2017 Author Share Posted November 17, 2017 (edited) 35 minutes ago, lapal_fan said: It's almost like it's worth just throwing that money into stocks and shares.. At least then you'd have some control on what you invested your money on, and you alone would be responsible for the end value.. That much money, paid in over (I don't know how many years) does almost seem pointless. I feel for you man, I think regular joes like us are in for a bad time, my retirement age is 67! (30 now). Actually I will be ok. My point is the NHS pension is shite Luckily I contributed to another scheme for around 7 years - I didn't recall paying massive amounts in - but the company have contacted me offering a settlement lump sum (but no annual) which dwarfs the figures the NHS are offering. I actually think the NHS scheme will go bust - none of the youngsters can afford to join - and people like myself will pull out (and pocket £220 PM) rather than receive a tiny extra amount at 67 Edited November 17, 2017 by hippo Link to comment Share on other sites More sharing options...
hippo Posted November 17, 2017 Author Share Posted November 17, 2017 1 minute ago, brommy said: Another 5 years contributions should add a fair bit to your benefits. Also, don't forget you aren't paying income tax and national insurance on the £220/month that goes into your pension pot. If you stop your pension contributions you won't have an extra £220 per month to save toward your retirement because after tax (lower rate) and NI your 'take home' will increase by just less than £150. I'd think very carefully before stopping your contributions. I suspect most decent IFAs would advise you continue to contribute. But if I have paid in 14 years and only get £3k pa - what will another 5 give me ? Plus after next year it goes towards my pensions at 67 - not 60 you are correct everyone advises staying in the scheme - but I can't see why ? Link to comment Share on other sites More sharing options...
Davkaus Posted November 17, 2017 Share Posted November 17, 2017 (edited) 1 hour ago, Paddywhack said: Hmm, I don't understand pensions at all so please excuse my daft questions. You may as well have just been saving that money under your bed then? How has this scheme helped at all? 1) Your employer contributions are an additional chunk of cash right away 2) You don't pay tax on pension contributions 3) Your pension will be invested somewhere, and accruing extra cash. Your money under the bed is losing value. It horrifies me how few young people are taking the terrible decision to benefit in the short term, neglecting their pension. It's a crisis waiting to happen. Edited November 17, 2017 by Davkaus 2 Link to comment Share on other sites More sharing options...
Davkaus Posted November 17, 2017 Share Posted November 17, 2017 46 minutes ago, lapal_fan said: It's almost like it's worth just throwing that money into stocks and shares.. At least then you'd have some control on what you invested your money on, and you alone would be responsible for the end value.. I've not seen a pension provider that doesn't give you at least some control of where your money is invested. Some are more limited than others, but you should have quite a large variety of funds to invest in. Link to comment Share on other sites More sharing options...
Davkaus Posted November 17, 2017 Share Posted November 17, 2017 (edited) 1 hour ago, hippo said: 55 So you started contributing to your pension when you were 41? How much do you contribute as a percentage of your wage? The common advice is that you should be putting in a percentage of half your age when you started contributing, so you ought to be putting in about 20.5% of your income (including employer contributions). I'm glad I started at 24 and it's only 12%! If anything, I think this thread should serve as encouragement to people to start a hell of a lot earlier. Compound interest is a hell of a thing . Edited November 17, 2017 by Davkaus 3 Link to comment Share on other sites More sharing options...
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