Pensions

cricketfieldclarets · Post by **cricketfieldclarets** » Fri Jan 18, 2019 12:05 am

Anyone NOT pay into a pension and think its a good idea? I always told myself I had to pay into one and pay as much as I can but...

Paid into mine for well over ten years. Just been going through mine and assessing what to do in future. And while it looks a good sum on paper, having just calculated it makes you think why bother (apart from the tax benefit of doing so and the fact I am used to not seeing that money anyway). Add to the fact that its now 68 until state pension seems a pretty **** way of saving. Even the alternative of houses seems a crap option these days with taxes and stamp duty.

HunterST_BFC · Post by **HunterST_BFC** » Fri Jan 18, 2019 12:25 am

Parents saved all their lives with pensions... Health Plans. etc
No fancy or infact any holidays taken over the years...

Once retired - all was basically taken.

I wish they'd spent more on themselves instead.

Even the Private health packages failed them - Bupa was basically an NHS outsource extension where one bed pays and the next bed was NHS paid for. Bupa making the money everything still effectively NHS but paid for twice.

1 Put it in ISAS in your kids names.
2 maybe shares?
3 enjoy it now or save for future goals.

dsr · Post by **dsr** » Fri Jan 18, 2019 12:34 am

Advantages of pensions:

Tax Relief
Employer has to contribute too (with auto-enrolment pensions)
It imposes a discipline and makes it harder to "not bother this month, next month will do"

Disadvantages:
Fees
Inflexibility
"Your investments may go down as well as up"

cricketfieldclarets · Post by **cricketfieldclarets** » Fri Jan 18, 2019 12:54 am

HunterST_BFC wrote:Parents saved all their lives with pensions... Health Plans. etc
No fancy or infact any holidays taken over the years...

Once retired - all was basically taken.

I wish they'd spent more on themselves instead.

Even the Private health packages failed them - Bupa was basically an NHS outsource extension where one bed pays and the next bed was NHS paid for. Bupa making the money everything still effectively NHS but paid for twice.

1 Put it in ISAS in your kids names.
2 maybe shares?
3 enjoy it now or save for future goals.

I do save. And thankfuly dont sacrifice the here and now either. But even saving is pretty **** because the interest rates are generally less than inflation so apart from the fact you are saving money you would otherwise have spent, you are technically losing money.

Makes me laugh - my 'high interest' savings account is less than 2%. However if you want a 'Low interest' loan its over 3%

cricketfieldclarets · Post by **cricketfieldclarets** » Fri Jan 18, 2019 12:56 am

dsr wrote:Advantages of pensions:

Tax Relief
Employer has to contribute too (with auto-enrolment pensions)
It imposes a discipline and makes it harder to "not bother this month, next month will do"

Disadvantages:
Fees
Inflexibility
"Your investments may go down as well as up"

Yes the discipline is a good thing. I am that used to saving it I dont think about it.

As mine was a 'low risk' fortunately I havent lost it. Dread to imagine how bad that would be. Luckily its actually increased a decent percentage.

When it comes to taking out the new one soon, might just park that one. So eggs in different baskets

HunterST_BFC · Post by **HunterST_BFC** » Fri Jan 18, 2019 1:14 am

dsr wrote:Advantages of pensions:

Tax Relief
Employer has to contribute too (with auto-enrolment pensions)
It imposes a discipline and makes it harder to "not bother this month, next month will do"

Disadvantages:
Fees
Inflexibility
"Your investments may go down as well as up"

"Tax Relief" yep but on the scale of things ..... unless you earn loads of money
"Employer has to contribute too" ... sounds good now but how many pension plans have been drained over the years? Non are guaranteed...
unless you are a Civil Servant .............

Property is a an asset that is relatively liquid when needed and can also be "transferred / split to your kids etc".

I don't have the answer regards pensions but I know I have lost thousands hard earned.

People become doctors to help people.
People become financial advisers / advisors to take some of your money - products that look great... now.

dsr · Post by **dsr** » Fri Jan 18, 2019 1:17 am

HunterST_BFC wrote:"Tax Relief" yep but on the scale of things ..... unless you earn loads of money
"Employer has to contribute too" ... sounds good now but how many pension plans have been drained over the years? Non are guaranteed...
unless you are a Civil Servant .............

Property is a an asset that is relatively liquid when needed and can also be "transferred / split to your kids etc".

I don't have the answer regards pensions but I know I have lost thousands hard earned.

People become doctors to help people.
People become financial advisers / advisors to take some of your money - products that look great... now.

If you're on basic rate, the tax relief is worth 20%. It's more than you get in the bank! Though you do lose some of that when the pension company takes its fees out.

And auto-enrolment pensions aren't in employer schemes, so they can't be drained by the company.

Sausage · Post by **Sausage** » Fri Jan 18, 2019 10:29 am

cricketfieldclarets wrote:Add to the fact that its now 68 until state pension seems a pretty **** way of saving.

Look at it this way. If you don't put money into your own pension you'll have no choice but to work until you're 68 when you can draw a pitifully small state pension. Putting money (any amount) into a private pension now will give you an option to retire before you're 68. I'd like to retire at 60. Maybe I will, maybe I won't be able to afford to, but I know for certain that if I don't pay into a pension I won't even have a choice.

TVC15 · Post by **TVC15** » Fri Jan 18, 2019 10:32 am

In terms of tax efficiency, rates of growth, low risk etc etc there is no better investment than your pension.

Even in later life with many people now having to pay for care money invested in your pension makes far more sense than money in property or cash savings as if you have it in these you can expect your local authority to come after it and whatever you may have will disappear very quickly.

For your pension your employer puts in, your tax reduced through salary sacrifice type schemes, and you get to draw out 25% tax free lump sum on maturity. You don’t necessarily have to wait till you are in your late 60s. You can take your pension early when you are 55 or you can transfer your work scheme to a personal pension and again take it when you are 55.

People are living longer and average age will only go one way in the future. Pensions are more important now than ever.

All about having a balance with what you do with your spare money - property, ISAs, savings are all good but pension should be top of the list.

And no i’m not a financial advisor - but i’d Recommend anyone wanting advice go and see one. It’s a very regulated industry and they are not there to rip you off.

(CC - where do I need to send my invoice to ?!!)

Down_Rover · Post by **Down_Rover** » Fri Jan 18, 2019 10:34 am

Isas are a better investment. Tax free profits and a stocks and shares ISA is cheap at the moment with all the Brexit issues. There are more flexible too.

Putting money into a pension is merely tax deferral, other than the 25% lump sum

Bosscat · Post by **Bosscat** » Fri Jan 18, 2019 10:47 am

I took out a personal pension plan in the late 80's and enroled into a company pension in around 96.

When I went self employed in 2005, I put my pensions on holiday (no contributions) every year they were growing by between 8% and 10%.

3 years ago thanks to the pensions reforms I decided to sell my business and utilise my Pension funds.

So at 58 I retired and now gave an income from my pension of around 5% ... the funds are still worth around what they were when I retired (they were growing but investments have taken a hit in the last 4 months) ...

Because I am drawing under my tax allowance threshold I do not pay tax etc....

When I start getting my State Pension in 2024 (66 for me) because I am on a drawdown, I will be able to adjust the amount I take from my plan so I stay tax efficient.

Definitely go and see a "Reputable Pensions Advisor" who can give you the best advice that suits you.
I did and I am extremely happy with his advice.... yes it costs money, but good advice usually does.
I used my Accountants Financial expert (from the firm who looked after my tax affairs when in business)

dushanbe · Post by **dushanbe** » Fri Jan 18, 2019 10:50 am

The only advice I've got is to be your own financial advisor.

TVC15 · Post by **TVC15** » Fri Jan 18, 2019 11:07 am

Down_Rover wrote:Isas are a better investment. Tax free profits and a stocks and shares ISA is cheap at the moment with all the Brexit issues. There are more flexible too.

Putting money into a pension is merely tax deferral, other than the 25% lump sum

You could not be more wrong.
1) have you had a look at the recent stock market performance in the last 12 months ? If you put your maximum £20k annual allowance into any of the main funds split between Europe and America you would be looking at least a 10% fall in value.
2) Pensions are nowhere near as reliant on stock market performance as ISAs - the likes of Prudential have seen 6% / 7% increases in the last 12 months when the stocks and shares ISAs have been falling.
3) it’s not just a tax deferral - your employer is contributing aswell as you and you end up with a higher net take home pay because of salary sacrifice schemes that almost all employers use.
4) When you say “other” than the tax free lump sum that’s rather a big other thing !
5) as per my original post loads of other advantages of money being in a pension pot around care home fees, inheritance tax planning, leaving money to your spouse / children etc.

Lowbankclaret · Post by **Lowbankclaret** » Fri Jan 18, 2019 11:44 am

I don’t have time in my dinner to type what I want. However I will do later.
As I am currently trying to plan my retirement I have been doing lots of research. I was on my unions pensions central negotiation committee so had quite a bit of training on pensions.
So I type up something later.
I also have a couple of spreadsheet illustrations that’s are interesting.
The one thing I will say is everyone’s circumstances are different and there fore advise can only be given for that one person and really you need professional advise.
But more of that later.

conyoviejo · Post by **conyoviejo** » Fri Jan 18, 2019 11:51 am

Be very careful,look what they did with the fifties women.. Making them wait another 5 years with hardly any warnings given to them for their pensions after they had paid in fully for many years.. Phookin rip off governments .. You young ones will have to wait to get your pensions till you are at least 80 the way things are going.. Take care with your money..

cricketfieldclarets · Post by **cricketfieldclarets** » Fri Jan 18, 2019 12:09 pm

Sausage wrote:Look at it this way. If you don't put money into your own pension you'll have no choice but to work until you're 68 when you can draw a pitifully small state pension. Putting money (any amount) into a private pension now will give you an option to retire before you're 68. I'd like to retire at 60. Maybe I will, maybe I won't be able to afford to, but I know for certain that if I don't pay into a pension I won't even have a choice.

Very fair point.

cricketfieldclarets · Post by **cricketfieldclarets** » Fri Jan 18, 2019 12:12 pm

TVC15 wrote:In terms of tax efficiency, rates of growth, low risk etc etc there is no better investment than your pension.

Even in later life with many people now having to pay for care money invested in your pension makes far more sense than money in property or cash savings as if you have it in these you can expect your local authority to come after it and whatever you may have will disappear very quickly.

For your pension your employer puts in, your tax reduced through salary sacrifice type schemes, and you get to draw out 25% tax free lump sum on maturity. You don’t necessarily have to wait till you are in your late 60s. You can take your pension early when you are 55 or you can transfer your work scheme to a personal pension and again take it when you are 55.

People are living longer and average age will only go one way in the future. Pensions are more important now than ever.

All about having a balance with what you do with your spare money - property, ISAs, savings are all good but pension should be top of the list.

And no i’m not a financial advisor - but i’d Recommend anyone wanting advice go and see one. It’s a very regulated industry and they are not there to rip you off.

(CC - where do I need to send my invoice to ?!!)

Great post thanks. I owe you a bene and a balti pie

Another thing to consider my current pension ceases soon when I change jobs. One thing I had considered was continuing to add to that separately from the one I will take out in the new job. I believe you can then do a self assesment each year and claim the tax back - which I could then put in my ISA yes?

Hipper · Post by **Hipper** » Fri Jan 18, 2019 12:17 pm

Bosscat wrote:I took out a personal pension plan in the late 80's and enroled into a company pension in around 96.

When I went self employed in 2005, I put my pensions on holiday (no contributions) every year they were growing by between 8% and 10%.

3 years ago thanks to the pensions reforms I decided to sell my business and utilise my Pension funds.

So at 58 I retired and now gave an income from my pension of around 5% the funds are still worth around what they were when I retired (they were growing but investments have taken a hit in the last 4 months) ...

Because I am drawing under my tax allowance threshold I do not pay tax etc....

When I start getting my State Pension in 2024 (66 for me) because I am on a drawdown, I will be able to adjust the amount I take from my plan so I stay tax efficient.

Definitely go and see a "Reputable Pensions Advisor" who can give you the best advice that suits you.
I did and I am extremely with his advice.... yes it costs money, but good advice usually does.
I used my Accountants Financial expert (from the firm who looked after my tax affairs when in business)

Whilst you and your generation, including me, did reasonably well out of pensions (I have a mix of state, private and local government pensions), they seemed to have become less successful now. When I took out my annuity using my private pension in 2012, annuities were at an all time low, but they went even lower afterwards.

With private pensions therefore, it's difficult to predict the future. Not only annuities but government changing the rules (now of course you can cash it in as well). In the past it has always been a long term view (ten years not being long) but looking long term now, I (in my ignorance) see nothing but major insoluble problems - global warming, immigration etc.. I'm not sure any financial advisor will account for these.

Down_Rover · Post by **Down_Rover** » Fri Jan 18, 2019 12:28 pm

TVC15 wrote:You could not be more wrong.
1) have you had a look at the recent stock market performance in the last 12 months ? If you put your maximum £20k annual allowance into any of the main funds split between Europe and America you would be looking at least a 10% fall in value.
2) Pensions are nowhere near as reliant on stock market performance as ISAs - the likes of Prudential have seen 6% / 7% increases in the last 12 months when the stocks and shares ISAs have been falling.
3) it’s not just a tax deferral - your employer is contributing aswell as you and you end up with a higher net take home pay because of salary sacrifice schemes that almost all employers use.
4) When you say “other” than the tax free lump sum that’s rather a big other thing !
5) as per my original post loads of other advantages of money being in a pension pot around care home fees, inheritance tax planning, leaving money to your spouse / children etc.

1. depends where you invest and what you invest in. I have a very diverse portfolio of investments and switch funds most months. If I ignore the tax relief on contributions my pension fund has earned sod all.
2. Until Brexit I was regularly earning 12+%
3. I am self employed so have to pay my own contributions. Stocks and shares investments will rise in medium to long term, good time to buy.

4. I will pay higher rate tax on my pension

5. I intend to spend all my money if I live that long. Isas are more flexible as to when I can spend it

As someone else said on this thread, everyones circumstances are different

Barry_Chuckle · Post by **Barry_Chuckle** » Fri Jan 18, 2019 12:37 pm

With the recent fall in stocks, I feel it's now a GREAT time to invest. You'll be getting more for your buck in the current market and history shows that what goes down will also go up at some point.

The knack is investing when markets are low, ringfence/take profit when markets are high.

By the way, I use Nostradarmus as my financial advisor

dushanbe · Post by **dushanbe** » Fri Jan 18, 2019 12:39 pm

Regular investing into diversified funds to benefit from pound cost averaging is the way. Forget trying to time your entry into a low point of the market - remember the old saying, 'Man who tries to find bottom, ends up with stinky finger'.

TVC15 · Post by **TVC15** » Fri Jan 18, 2019 12:43 pm

cricketfieldclarets wrote:Great post thanks. I owe you a bene and a balti pie

Another thing to consider my current pension ceases soon when I change jobs. One thing I had considered was continuing to add to that separately from the one I will take out in the new job. I believe you can then do a self assesment each year and claim the tax back - which I could then put in my ISA yes?

As long as it’s within the annual contribution allowance you can put in extra. Not sure this allows you to claim tax back though.
I would defo take advice on this one as it maybe that your old scheme does not allow this from ex employees. Each pension scheme is different and has its own rules which can change over time. Personally think you are better sorting out your own private pension if you want to put in extra but again it’s very individual and you need to take advice. Happy to put you in touch with someone who I use.

cricketfieldclarets · Post by **cricketfieldclarets** » Fri Jan 18, 2019 12:52 pm

TVC15 wrote:As long as it’s within the annual contribution allowance you can put in extra. Not sure this allows you to claim tax back though.
I would defo take advice on this one as it maybe that your old scheme does not allow this from ex employees. Each pension scheme is different and has its own rules which can change over time. Personally think you are better sorting out your own private pension if you want to put in extra but again it’s very individual and you need to take advice. Happy to put you in touch with someone who I use.

Perfect thanks. Yes would be worthwhile contacting them for sure.

dsr · Post by **dsr** » Fri Jan 18, 2019 1:01 pm

conyoviejo wrote:Be very careful,look what they did with the fifties women.. Making them wait another 5 years with hardly any warnings given to them for their pensions after they had paid in fully for many years.. Phookin rip off governments .. You young ones will have to wait to get your pensions till you are at least 80 the way things are going.. Take care with your money..

These people screaming for equal treatment for women have a lot to answer for.

evensteadiereddie · Post by **evensteadiereddie** » Fri Jan 18, 2019 1:10 pm

Pensions ? I love 'em.

TVC15 · Post by **TVC15** » Fri Jan 18, 2019 1:23 pm

[quote="Down_Rover"

As someone else said on this thread, everyones circumstances are different[/quote]

Which is why you telling someone with very clearly completely different circumstances to yourself that ISAs are better than pensions is not the brightest piece of advice.
In the vast majority of cases investing in your pension will always be better for most working people. It is a much lower risk than ISAs and far more tax efficient for most...you might not be bothered about saving money for later life but a big chunk of the population do not have that option.

I've got a stocks and shares ISAs and even though 50% of it is in Europe whether it goes up and down is basically down to one thing...the performance of the Dow Jones. Our stock market (and all world stock markets) follow the lead of the US stock market. In the last year the one single biggest reason which has determined whether the Dow Jones goes up or down is how the trade talks with China are progressing. So basically mine and lots of other peoples stocks and shares ISAs performance are down to how much of a d-ick Donald Trump decides to be on any given day !!

TVC15 · Post by **TVC15** » Fri Jan 18, 2019 1:25 pm

cricketfieldclarets wrote:Perfect thanks. Yes would be worthwhile contacting them for sure.

Its Egan Roberts in Ribchester. Ask for the financial advisor department. All contact details on their website.

brunlea99 · Post by **brunlea99** » Fri Jan 18, 2019 3:06 pm

There is a very useful website which you can use to find free financial advice from regulated Financial Advisors:

https://www.unbiased.co.uk/adviser-enqu ... 4QEALw_wcB" onclick="window.open(this.href);return false;

Well worth a look as a starting point.

cricketfieldclarets · Post by **cricketfieldclarets** » Fri Jan 18, 2019 4:00 pm

Thanks both

turfytopper · Post by **turfytopper** » Fri Jan 18, 2019 5:00 pm

[quote="dsr"]Advantages of pensions:

Tax Relief
Employer has to contribute too (with auto-enrolment pensions)
It imposes a discipline and makes it harder to "not bother this month, next month will do"

Disadvantages:
Fees
Inflexibility
"Your investments may go down as well as up"[/quote

Add to advantage list not only the tax relief on contributions but the 25% tax free cash when money is withdrawn.

Taffy on the wing · Post by **Taffy on the wing** » Fri Jan 18, 2019 5:18 pm

TVC15 wrote:In terms of tax efficiency, rates of growth, low risk etc etc there is no better investment than your pension.

Even in later life with many people now having to pay for care money invested in your pension makes far more sense than money in property or cash savings as if you have it in these you can expect your local authority to come after it and whatever you may have will disappear very quickly.

For your pension your employer puts in, your tax reduced through salary sacrifice type schemes, and you get to draw out 25% tax free lump sum on maturity. You don’t necessarily have to wait till you are in your late 60s. You can take your pension early when you are 55 or you can transfer your work scheme to a personal pension and again take it when you are 55.

People are living longer and average age will only go one way in the future. Pensions are more important now than ever.

All about having a balance with what you do with your spare money - property, ISAs, savings are all good but pension should be top of the list.

And no i’m not a financial advisor - but i’d Recommend anyone wanting advice go and see one. It’s a very regulated industry and they are not there to rip you off.

(CC - where do I need to send my invoice to ?!!)

Make sure it's a FEE ONLY financial planner!....the others are working on commission and will bleed you dry.

Down_Rover · Post by **Down_Rover** » Fri Jan 18, 2019 6:34 pm

TVC15 wrote:[quote="Down_Rover"

As someone else said on this thread, everyones circumstances are different

Which is why you telling someone with very clearly completely different circumstances to yourself that ISAs are better than pensions is not the brightest piece of advice.
In the vast majority of cases investing in your pension will always be better for most working people. It is a much lower risk than ISAs and far more tax efficient for most...you might not be bothered about saving money for later life but a big chunk of the population do not have that option.

I've got a stocks and shares ISAs and even though 50% of it is in Europe whether it goes up and down is basically down to one thing...the performance of the Dow Jones. Our stock market (and all world stock markets) follow the lead of the US stock market. In the last year the one single biggest reason which has determined whether the Dow Jones goes up or down is how the trade talks with China are progressing. So basically mine and lots of other peoples stocks and shares ISAs performance are down to how much of a d-ick Donald Trump decides to be on any given day !![/quote]

I don’t disagree with you but you said I could not be more wrong

Not in my circumstances so a case of pot calling the kettle sir

clarethomer · Post by **clarethomer** » Fri Jan 18, 2019 6:57 pm

Taffy on the wing wrote:Make sure it's a FEE ONLY financial planner!....the others are working on commission and will bleed you dry.

They cant take commission on this type of advice...Advice will come through a charge - whether that is a hourly rate or a % of investment etc.

Anyway.....Seek advice is the best advice you will get on here.

If you are genuinely interested in the subject...

Pensions are a tax wrapper, like an ISA or a Bond is a tax wrapper.

The underlying investments can be equities, bond, cash etc. What makes them a pension/ISA is the tax wrapper placed around the fund.

The benefits of a pension tax wrapper mean you get tax relief on your contributions and if you are employed you will get an element of employer matching. So depending on whether you want to invest a lump sum or a regular amount into one, it still has great benefits.

Assuming you have £20k to put into a pension, this immediately becomes £25k with tax relief.
If you can put in £300 per month and you receive 100% employer matching, then you get another £300 for free.

Tax deferral is one way a pension has been described, and it could be seen that way if your tax rate remains the same in retirement as it is now. However if you have benefitted from the tax relief, any growth would have been on a higher amount so you would like to think that if I invested £20k into an ISA and the same into a pension - assuming both hold the same underlying funds and left them for say 25 years. I would guarantee that the pension would be worth more simply the growth % is a % of a bigger starting amount and the difference over a period of time with the compounding effect would be significantly different.

£20K invested with an annual interest rate of 5% over 25 years would see it worth £67,727.10

£20k invested in a pension, receives a 5k uplift through tax relief. Using the same calc as above = £84,658.87

So you cannot simply say the tax relief isn't worth it because you get taxed on the way out etc..

Of course there are restrictions and there could be many reasons not to invest into a pension but hopefully this gives you an understanding to the benefit of having your pension being funded as part of your portfolio.

TVC15 · Post by **TVC15** » Fri Jan 18, 2019 8:56 pm

[/quote]

I don’t disagree with you but you said I could not be more wrong

Not in my circumstances so a case of pot calling the kettle sir[/quote]

Difference is that I was referencing the circumstances of the person who started the thread whereas you were talking about your own circumstances but suggesting that a pension was not right for the OP. As I said you could not be more wrong about that.

cricketfieldclarets · Post by **cricketfieldclarets** » Fri Jan 18, 2019 9:58 pm

If I now stop contributions on a pension and cease to restart it, is all money paid in and the current balance final?

clarethomer · Post by **clarethomer** » Fri Jan 18, 2019 9:59 pm

it will continue to remain invested so will have the opportunity to grow and the costs for running the investment will continue...

TVC15 · Post by **TVC15** » Fri Jan 18, 2019 10:00 pm

No - it will continue to grow.
Now stop worrying and have a beer !

Lowbankclaret · Post by **Lowbankclaret** » Fri Jan 18, 2019 10:16 pm

Firstly let me deal with company pensions, which are becoming rare.
Final salary pensions are a really good thing for anyone who is in good health at retirement.
A fix sum you will get for the rest. Of your life.
Increases are based on fund rules but in general these are a good deal.

Negatives are the company could rape the scheme and leave you with nothing.

yorkyclaret · Post by **yorkyclaret** » Fri Jan 18, 2019 10:17 pm

No expert, but joining my works pension was the best thing I ever did. Maybe I joined at just the right time, when it started, but couldn't believe what I got out of it.

cricketfieldclarets · Post by **cricketfieldclarets** » Fri Jan 18, 2019 10:20 pm

TVC15 wrote:No - it will continue to grow.
Now stop worrying and have a beer !

I'm teetotal and the only time I get spare from changing nappies is checking UTC for new signings, squad news, whether dyche is leaving and pension advice

TVC15 · Post by **TVC15** » Fri Jan 18, 2019 10:23 pm

Well i’ve just been to the funeral of a friend of mine who I have known since school....so a good drink was in order.

Lowbankclaret · Post by **Lowbankclaret** » Fri Jan 18, 2019 10:25 pm

Private schemes are also a good thing .
In the main you put money and get 20% tax relief. Many employers put double in what you do.
So normally you put 80p in , the gov adds 20p. Employers put £2 in so the employee is quids in.
Plus side it’s your money the company cannot get hold of it.

Downside is it’s a company who’s employees can lose mega money at your cost.

I had 18 years of pension with equitable life when it crashed. It’s transfer value when I left was £17000, less than paid in. Major risk of a private pension.

Lowbankclaret · Post by **Lowbankclaret** » Fri Jan 18, 2019 10:28 pm

Can someone post how I post pictures please
I keep trying and fail

Lowbankclaret · Post by **Lowbankclaret** » Fri Jan 18, 2019 10:36 pm

There are ISA’s and SIPP’s
But you have to manage them and you can lose all your money if your careful.

And lost plenty, northern rock. Grand invested went bust, lost it all.

There are ways to invest that take less risk.

Managed funds.

Lowbankclaret · Post by **Lowbankclaret** » Fri Jan 18, 2019 10:45 pm

If you are lucky to be in a works pension in good health and you have a guaranteed yearly income at retirement. That’s your option right there.
For me diabetic, uncontrolled high blood pressure and a heart issue with two options.
14000 a year for life.
Or
£500000 lumpsum in a draw down.
Now that’s a decision.
At 5% a year I can take £25 k and the lump sum remains about the same. If I kick it in 3 years my daughter gets 500k on drawdown. If I take the company 14k the trustees might give her half the 14k for ten years at most.

TVC15 · Post by **TVC15** » Fri Jan 18, 2019 10:51 pm

Lowbank - go see an IFA and he will tell you whether he recommends transferring it.
I did mine nearly 2 years ago.

It’s a big decision and all depends on your circumstances.

Lowbankclaret · Post by **Lowbankclaret** » Fri Jan 18, 2019 10:53 pm

TVC15 wrote:In terms of tax efficiency, rates of growth, low risk etc etc there is no better investment than your pension.

Even in later life with many people now having to pay for care money invested in your pension makes far more sense than money in property or cash savings as if you have it in these you can expect your local authority to come after it and whatever you may have will disappear very quickly.

For your pension your employer puts in, your tax reduced through salary sacrifice type schemes, and you get to draw out 25% tax free lump sum on maturity. You don’t necessarily have to wait till you are in your late 60s. You can take your pension early when you are 55 or you can transfer your work scheme to a personal pension and again take it when you are 55.

People are living longer and average age will only go one way in the future. Pensions are more important now than ever.

All about having a balance with what you do with your spare money - property, ISAs, savings are all good but pension should be top of the list.

And no i’m not a financial advisor - but i’d Recommend anyone wanting advice go and see one. It’s a very regulated industry and they are not there to rip you off.

(CC - where do I need to send my invoice to ?!!)

The problem is as I have mentioned either the company or the investment company can lose your money.

Lowbankclaret · Post by **Lowbankclaret** » Fri Jan 18, 2019 10:58 pm

An IFA will tell me not to do it .
Two already have.
I intend to spend a few years going doing my bucket list which I cannot do on the £14k.
But I can with a lump sum of £500k.

Bfcboyo · Post by **Bfcboyo** » Fri Jan 18, 2019 10:58 pm

cricketfieldclarets wrote:Anyone NOT pay into a pension and think its a good idea? I always told myself I had to pay into one and pay as much as I can but...

Paid into mine for well over ten years. Just been going through mine and assessing what to do in future. And while it looks a good sum on paper, having just calculated it makes you think why bother (apart from the tax benefit of doing so and the fact I am used to not seeing that money anyway). Add to the fact that its now 68 until state pension seems a pretty **** way of saving. Even the alternative of houses seems a crap option these days with taxes and stamp duty.

Government backed life time savings ISA 4k a year is a good start. Property after that Jimmy.

TVC15 · Post by **TVC15** » Fri Jan 18, 2019 11:03 pm

Pensions are now protected so it’s nowhere near as bad as previously (google the pension protection scheme)
If you transfer it to a private pension then yes the investment can go down aswell as up....but many of the big funds like Prudential have low risk funds which even in the last year when markets were down are achieving 6% to 7% growth.