ips Posted June 28, 2017 Author Report Share Posted June 28, 2017 If I was in my twenties in the current climate I would sell everything I had pack a case and begger off to France or Spain or even oz and I wouldn't darken the door of uk ever again.... Quote Link to comment Share on other sites More sharing options...
Davyo Posted June 28, 2017 Report Share Posted June 28, 2017 I fully understand why people feel the case but the two things to remember are 1) Compound growth means that money invested early has a far greater value than money invested later (it has longer to grow and you get annual growth on top of annual growth) and 2) Pension are tax efficient. The contributions, within annual allowances, are tax free and you can take 25% out of the pot at retirement tax free. Little in life is so tax efficient. I partially agree. Getting on the ladder is important but I would sacrifice overpaying the mortgage against paying into a pension. In the current low interest climate at least. For the reasons above. +1 it's exactly what I did on both,and was able to part retire at 50.Now only work 6hrs per week till 55 this Oct and fully retire. Quote Link to comment Share on other sites More sharing options...
NorfolkAYA Posted June 28, 2017 Report Share Posted June 28, 2017 Anyone with a PTA (personal tax account) can check their estimated NIB (state pension) as well as check up on NIC co tributions and any gaps. I part retired at 50 and fully retire at 55 (this October) State pension for me is years away.I am not confident it will actually be there when my time is due,however this has been accounted for. My advise to the young is stop ******* money up the wall ie drinking,smoking and paying £60 per mth for the latest phone when a £15 one will do. .Get straight repayment morg (not a house to keep up with the Jones) and overpay when ever possible.Why waste money on a Jag when a Fiesta will serve the same purpose.Then save up for your retirement because there will be no state pension. I'm 26 and have a work pension and a small military pension ( which I didn't pay into and it's quite fair). However I wouldn't be putting extra money away a month, I would rather enjoy it now to be honest. Spend time with family, holidays, etc. I save my own money, I don't fancy giving it to someone to gamble with when at the end of the day retirement isn't guaranteed anyway. Live for today as tommorow may never come!!! Quote Link to comment Share on other sites More sharing options...
Crumpler1991 Posted June 28, 2017 Report Share Posted June 28, 2017 So u have to pay 30 years ni to qaulify for pension how does this work for the dollies who have never worked? Quote Link to comment Share on other sites More sharing options...
AVB Posted June 28, 2017 Report Share Posted June 28, 2017 (edited) deleted due to formatting problems Edited June 28, 2017 by AVB Quote Link to comment Share on other sites More sharing options...
Vince Green Posted June 28, 2017 Report Share Posted June 28, 2017 So u have to pay 30 years ni to qaulify for pension how does this work for the dollies who have never worked? Income Support Quote Link to comment Share on other sites More sharing options...
Mice! Posted June 28, 2017 Report Share Posted June 28, 2017 If I was in my twenties in the current climate I would sell everything I had pack a case and begger off to France or Spain or even oz and I wouldn't darken the door of uk ever again.... Had this thought a few times, I've a good friend in Seattle a cousin in Oz and know a few other folk who have taken the leap, almost makes me wish I was an only child so we could do a runner abroad but think it takes massive courage to wave goodbye to all your family and go as far as Oz or usa. Quote Link to comment Share on other sites More sharing options...
Mice! Posted June 28, 2017 Report Share Posted June 28, 2017 So given that there are folk on here talking about pensions who sound like they know what there talking about, how much would you pay into a pension at 40years old, I have a company pension, a small frozen one and like others don't expect there to be a government pension by the time I retire?? Quote Link to comment Share on other sites More sharing options...
Luckyshot Posted June 28, 2017 Report Share Posted June 28, 2017 So given that there are folk on here talking about pensions who sound like they know what there talking about, how much would you pay into a pension at 40years old, I have a company pension, a small frozen one and like others don't expect there to be a government pension by the time I retire?? For most of us it's not how much you would put into a pension it's how much can you afford to put in to a pension. I'm 38 have a work pension and put the minimum into it as by the time I pay my mortgage and other bills I'm left with less than £300 a month. I don't have many luxuries never been on holiday for over 10 years drive a 15 year old van but I'm healthy and happy, what will happen to me at retiring age doesn't bear thinking about. Quote Link to comment Share on other sites More sharing options...
Wb123 Posted June 28, 2017 Report Share Posted June 28, 2017 So given that there are folk on here talking about pensions who sound like they know what there talking about, how much would you pay into a pension at 40years old, I have a company pension, a small frozen one and like others don't expect there to be a government pension by the time I retire?? http://www.bbc.co.uk/news/business-38609422 This is the easiest to follow explanation i have seen. I am 28, my work pension takes 9.3% and i save a few hundered a minth on top. Quote Link to comment Share on other sites More sharing options...
Vince Green Posted June 28, 2017 Report Share Posted June 28, 2017 So given that there are folk on here talking about pensions who sound like they know what there talking about, how much would you pay into a pension at 40years old, I have a company pension, a small frozen one and like others don't expect there to be a government pension by the time I retire?? Its not so much about how much you pay into a pension as how much your money will grow in that pension. Many of the well known pension schemes (ie the ones you see advertised) have turned in piddle poor performances over the past twenty or so years leaving people with pensions well below what they expected to be getting. Quote Link to comment Share on other sites More sharing options...
AVB Posted June 28, 2017 Report Share Posted June 28, 2017 Its not so much about how much you pay into a pension as how much your money will grow in that pension. Many of the well known pension schemes (ie the ones you see advertised) have turned in piddle poor performances over the past twenty or so years leaving people with pensions well below what they expected to be getting. Vince. You said this before but won't name the 'schemes' you are referring to and I don't know what you are referring to by the term 'scheme'. As a pension is simply a wrapper for an eligible investment (shares, funds, bonds, commercial property etc) can you be a bit more explicit? Quote Link to comment Share on other sites More sharing options...
ips Posted June 28, 2017 Author Report Share Posted June 28, 2017 I say stuff it and live life as good as you can with what you have right now. You may never make retirement age. Quote Link to comment Share on other sites More sharing options...
AVB Posted June 28, 2017 Report Share Posted June 28, 2017 In a PM with a member on here I came across this site that explains very clearly the tax benefits of a pension which many people are not aware of. https://www.youinvest.co.uk/sipp/tax-benefits-sipp for example a higher rate tax payer (although earning less than £150K as it is less attractive if you earn above) only has to contribute £24K in order to get a total contribution of £40K into their pension. Even a non earner can benefit. My wife doesn't work so I pay £2,880 into her pension to which the Government adds £720 making a total contribution of £3,600. It's the nearest thing you get to free money nowadays. Now I know it isn't free as it comes from the general tax pool but take it while you can. And if you die it goes to your wife or kids (or whoever you want to leave it to). Quote Link to comment Share on other sites More sharing options...
Mice! Posted June 29, 2017 Report Share Posted June 29, 2017 Cheers gents I'll take a look at the links when I'm home, need to look at how much is worth putting away, at the moment spare cash goes into savings and isa, which pays nothing as we know. Quote Link to comment Share on other sites More sharing options...
Mice! Posted June 29, 2017 Report Share Posted June 29, 2017 Spooky, just posted the above, go to my emails to clear the usual rubbish, msn UK how to make your early retirement...... Someone is watching!! Quote Link to comment Share on other sites More sharing options...
ips Posted June 29, 2017 Author Report Share Posted June 29, 2017 Spooky 😁 Quote Link to comment Share on other sites More sharing options...
Lloyd90 Posted June 29, 2017 Report Share Posted June 29, 2017 Spooky, just posted the above, go to my emails to clear the usual rubbish, msn UK how to make your early retirement...... Someone is watching!! Think all the web providers do it now, gather your preferences to given you targeted specific ads Quote Link to comment Share on other sites More sharing options...
Mice! Posted June 29, 2017 Report Share Posted June 29, 2017 I haven't looked at anything to do with retirement or pensions other than this thread, that's what's spooky 😉 Quote Link to comment Share on other sites More sharing options...
oowee Posted June 29, 2017 Report Share Posted June 29, 2017 In a PM with a member on here I came across this site that explains very clearly the tax benefits of a pension which many people are not aware of. https://www.youinvest.co.uk/sipp/tax-benefits-sipp for example a higher rate tax payer (although earning less than £150K as it is less attractive if you earn above) only has to contribute £24K in order to get a total contribution of £40K into their pension. Even a non earner can benefit. My wife doesn't work so I pay £2,880 into her pension to which the Government adds £720 making a total contribution of £3,600. It's the nearest thing you get to free money nowadays. Now I know it isn't free as it comes from the general tax pool but take it while you can. And if you die it goes to your wife or kids (or whoever you want to leave it to). I use this company for my wifes pension, very cost effective. Unfortunately the tax relief is removed for higher earners. Quote Link to comment Share on other sites More sharing options...
AVB Posted June 29, 2017 Report Share Posted June 29, 2017 I use this company for my wifes pension, very cost effective. Unfortunately the tax relief is removed for higher earners. Yes it tapers down from £150K upwards. Above £210K you only get £10K annual allowance. Quote Link to comment Share on other sites More sharing options...
Michael Scotland Posted June 29, 2017 Report Share Posted June 29, 2017 Could it be something to do with the amount you earn say someone on 500 a month for 35 years would pay in more national insurance than someone on 400 ? I don't know if this is right but would could be an answer Quote Link to comment Share on other sites More sharing options...
Mice! Posted June 30, 2017 Report Share Posted June 30, 2017 Yes it tapers down from £150K upwards. Above £210K you only get £10K annual allowance. Made me smile that bit, I would happily only get the £10k allowance 😅 Quote Link to comment Share on other sites More sharing options...
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