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My Gold plated NHS Pension ????

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4 hours ago, Davkaus said:

What's your alternative plan for retirement? 

Not aimed at me but...

I'm not relying on my pension although I have about 24% going in monthly overall.

A combination of private pension / state pension (whatever that will be when I hit 67) / dividends from my shares (currently getting 6% return) / property (hopefully have 4 by the time i'm 50 if everything falls into place)

Then i'm moving abroad and live off that. 

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Roughly £100k in your pension pot will generate £5k per annum (individual circumstances will vary this - health/age/retirement vehicle)

So most people would say £20k is a decent income in retirement noting you (should) be free of debt. You'll need £400k in your pot. The average in the UK is £50k

 

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18 hours ago, ender4 said:

yes, agreed, its not special.    

Just to clarify - its not a final salary scheme, but a defined contribution/money purchase scheme?

Its still better than not putting the money into the pension - if you had put that in a bank/under your mattress, you'd only have the equivalent of £1,478 per year, rather than £2,500 per year.

You're basically £1,000 per year, or £25k in total better off by putting into the pension. 

You are assuming that the op will live to 85 years, which in all probably he won’t,  my dad paid into work pensions all his life, retired at 65 and dead 11 months later,  he got no benefit from all the money he paid in, could have not bothered and had extra cash every week and enjoyed it rather than loosing a chunk of his take home every week.

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21 minutes ago, hycus-flange said:

You are assuming that the op will live to 85 years, which in all probably he won’t,  my dad paid into work pensions all his life, retired at 65 and dead 11 months later,  he got no benefit from all the money he paid in, could have not bothered and had extra cash every week and enjoyed it rather than loosing a chunk of his take home every week.

Most workplace pensions are money purchase/defined contribution schemes. Meaning that money can pass down to your family tax efficiently. If you were to die before the age of 75 then that pot of money goes tax free to your beneficiaries. After 75 and they can in effect take on the pension for themselves and draw down from the pot and pay income tax at their own rates.

You would be silly not to max your contributions in line with what your employer will match them up to. It is free money. Obviously you don't have to rely only on pensions for retirement but it is a great place to start. 

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24 minutes ago, hycus-flange said:

You are assuming that the op will live to 85 years, which in all probably he won’t,  my dad paid into work pensions all his life, retired at 65 and dead 11 months later,  he got no benefit from all the money he paid in, could have not bothered and had extra cash every week and enjoyed it rather than loosing a chunk of his take home every week.

That’s quite a gamble to work off. 

Dont pay into a pension and hope you die before you run out of money!

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All this thread is showing me is that it's **** miserable when you retire and we'revall absolute mugs working most of our lives, which once finished working are tossed aside like an unwanted salad.

**** this life man.

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1 hour ago, omariqy said:

 

Most workplace pensions are money purchase/defined contribution schemes. Meaning that money can pass down to your family tax efficiently. If you were to die before the age of 75 then that pot of money goes tax free to your beneficiaries. After 75 and they can in effect take on the pension for themselves and draw down from the pot and pay income tax at their own rates.

You would be silly not to max your contributions in line with what your employer will match them up to. It is free money. Obviously you don't have to rely only on pensions for retirement but it is a great place to start. 

The point I was trying to make was that for 40+ years my dad paid into pensions for HIS benefit after he retired.

He died 11 months after retiring,  therefore he got no benefit at all from 40+ years of having less money in his take home pay, a double whammy of shit for him, and when my mom pops off whatever is left will disappear never to be seen again.

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7 hours ago, lapal_fan said:

All this thread is showing me is that it's **** miserable when you retire and we'revall absolute mugs working most of our lives, which once finished working are tossed aside like an unwanted salad.

**** this life man.

Combination of people living far longer, lack of education about pensions and naivety has created this.

You can't expect to pay £50 a month into a pension for 20 years and get £1500 a month out of it for 30 years when you retire. There has to be more education about these things. I have mates in their late 30's / early 40's and they have only started paying into a pension. I worry about them. 

 

 

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2 hours ago, Xela said:

Combination of people living far longer, lack of education about pensions and naivety has created this.

You can't expect to pay £50 a month into a pension for 20 years and get £1500 a month out of it for 30 years when you retire. There has to be more education about these things. I have mates in their late 30's / early 40's and they have only started paying into a pension. I worry about them. 

 

 

My mate who is a painter decorator has no pension at all ... and a huge mortgage .... he’s kinda screwed I fear

 

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Old fogeys only live off soup, crusty cobs and murray mints so you'll save millions on your shopping per annum to use on staying warm and not dying during winter. Yay! Can't wait!

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12 hours ago, Stevo985 said:

That’s quite a gamble to work off. 

Dont pay into a pension and hope you die before you run out of money!

You could rig the punt by spending all the extra cash on fags, booze and drugs. :D

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11 hours ago, snowychap said:

You could rig the punt by spending all the extra cash on fags, booze and drugs. :D

That was my plan, but I was worried it wasn't going to kill me quick enough ;) Don't worry about the future, that's the way I see it. 

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When I joined by pension scheme about 7 years ago it was estimated to pay out about £18k a year (in today’s money).

As each year has gone by I’ve outstripped their predictions in terms of earnings/salary and of course contributions but dispite this the prediction has gone down and down and down. When I asked them (Zurich) they say it’s because of 1) their fees (rocket polishers) and 2) long term predictions about the interest rates.

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31 minutes ago, Rugeley Villa said:

That was my plan, but I was worried it wasn't going to kill me quick enough ;) Don't worry about the future, that's the way I see it. 

You can be one of those people bitter that you say you worked all your life and have nothing to show for it and blame it all on the government.

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1 minute ago, Genie said:

You can be one of those people bitter that you say you worked all your life and have nothing to show for it and blame it all on the government.

Aslong as I've got bread, that's all that matters. 

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2 hours ago, Rugeley Villa said:

That was my plan, but I was worried it wasn't going to kill me quick enough ;) Don't worry about the future, that's the way I see it. 

Just keep betting on the nags. ;)

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14 hours ago, tonyh29 said:

My mate who is a painter decorator has no pension at all ... and a huge mortgage .... he’s kinda screwed I fear

 

He should downsize then if he can?

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19 hours ago, tonyh29 said:

My mate who is a painter decorator has no pension at all ... and a huge mortgage .... he’s kinda screwed I fear

 

Think of all the money he's saved by not paying income tax though ;)

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On 17/11/2017 at 12:08, tonyh29 said:

long term won't work place pensions alleviate this ?

it goes up to 8% from 2019 (employee + employer contributions)  .. if you earn £20k a year for 50 years working life that's £80k before you factor in any  returns 

still not a fortune , but better than the current average of £50k in a pension pot 

The current auto enrolment pension agenda will certainly make a big difference in years to come, particularly when the rises in contributions start kicking in.

I’m not sure which party brought it in but I applaud whichever it was for doing it, it needed to be done.

But... and it’s a big but, the fundamental issue with it is that although employers must offer the pension and contribute, despite the auto enrolment workers can easily opt out.

So I don’t think that in reality it addresses the real issue, understanding.

I don’t think it’s educating people of the need for a private pension, it’s trying to force it on them.

It will work for some, those too lazy to sort one but who want one or are happy to have one. It will catch some too lazy to opt out as well but I’d be very interested to see some statistics on opt outs.

The real issue is education and it goes way beyond pensions. A huge number of people in this country are financially illiterate, even otherwise well educated intelligent people are frankly clueless on personal finance.

I’m always banging on about this so won’t get my drum out again but you don’t change people’s behaviour on mass through auto enrolment pensions which they can opt out of. 

The Government (any Government not just a Tory one as this isn’t a political point, or rather not a party political one) either need to go the whole way and make it auto enrolment without the opt out and forget about the education piece. Or they need to carry on as they are and start educating people on personal finance. Perhaps they could start with explaining to future uni students how far they need to bend over to get their student loan.

The problem is that financial education isn’t on the agenda let alone the curriculum. If people were financially literate our economoy would likely grind to a stop given most of it seems to be built on the sand of credit.

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