Sorry to bore you lot, but was wondering if anyone pays into a pension scheme? As I approach 40, I have absolutely no sort of scheme set up to top up state pension. Mentioned this to a group of mates the other day & over half of us seemed set up to be properly fooked when retirement comes... No real point to this post, but was curious to how my fellow hoops are set up for old age!
Mate we're still rather young lads on this forum. Nobody is over 25-30 so pension is far away from us
Really? Think you'll find that isn't the case. I have a couple of separate pensions, but it all depends on how the stock market is performing as to how much you'll get. Over the last few years I would have been better off putting the money under the pillow!!
I've paid into my work scheme for last 25 years. It isn't gonna be great when I retire but it will be something, along with a few other investments I've got. My advice to you for what it's worth is start saving for your retirement ASAP, 'cos we can't rely on the state to look after us in old age anymore.
Saving for retirement is good advice. But for many, private pensions have not been all that they should have been, so you need to tread carefully. A good independent financial advisor should advise on tax efficient payments in, with least risk to the pension pot. In fact, it's not a bad idea to get such advice from more than one source.
SH in all honsesty you can never have enough when it comes to retirement, could you really live on around £140 a week that the state pay? You need to provide for yourself and family as much as possible and it is never too young to start a pension. The only downside is the volitility in the financial markets, from 2007 onwards the value of pension plans halved in value although they have recovered in the last few years and the losses are around 20 - 25% at the moment, but they should recover in time. Get proper financial advice and take it from there.
Speak for yourself, I'm 61 this year and don't have a pension due to having spent decades working outside the UK for myself. If I was 30 or 40 I wouldn't bother as the state and financial system as we know it won't be around in 30 years time in all probability. Anyways, that aside, pensions and insurance are ribaa and quite probably haram which is why I don't bother with any form of insurance. (cost is the real reason but...!)
Seriously if there's thirty years to wait try to invest in a country with a positive future like Brazil, Indonesia or Nigeria. It's the fall of the Roman Empire here in Europe and the Seppos are in even deeper trouble. Don't give the give the scamsters your money and your future.
I was made redundant last year from Local Government and was able to draw my pension from that, I'd be f*cked without it as it supplements my income in my new job which doesn't pay anywhere near what I was earning. The trouble with private pensions are the start-up costs which eat a big chunk out of the pot, poor interest rates and the final knee-in-the-groin is the piss-poor annuity rates. A £100,000 pension pot will barely earn £5,000 a yeardepending on the type of annuity. If you can put your money in property and get rental income you'd be far better off...
Just had my ISA statement which reflects that the savings are worth about 10% less than what i have paid in over the last 3 years. These are on apparently safe investments too. Other than being tax efficient, in the current market as regards growth, I reckon pensions and life companies are a total waste of time and money. Best try and buy a small house and let it with a repayment mortgage, at least you will be guaranteed something back in 25 years.
There's a whole bunch of good advice on here already, but here are my thoughts anyway... (1) There is still a tax advantage to putting money into a pension scheme. (2) If you have access to an occupational scheme, then your employer is obliged to make a contribution too. (3) Depending on your budget and attitude to risk, investing sums into stocks and share or property as well is not a bad idea. Sooperhoop's suggestion that you invest in property and then let it out to get rental income is an excellent one, but always remember this income is taxable and you have certain obligations to maintain the property, which can be expensive if you buy poorly. (4) Always make use of other tax-free schemes that are available, such as ISAs and regular savings bonds, no matter how small the commitment. For example, with the latter you can tuck away £25 per month for a minimum of ten years (which flies by, believe me!) but opt to continue with it well beyond this time. (5) Life insurance schemes are useful too, as are critical illness cover, particularly if you can find schemes that also have a residual, cash-in value. (6) Any one of the above are worth considering, but it's fair to say that the longer you stay in the more likely you're going to make a return. Despite the financial and banking crisis in 2008, investing for the longer term in stocks and shares generally outperform many other forms of investment. It's all about getting the right portfolio balance.
Not bothered with a pension so far but if me and the missus was to invest it would be in property, you get better returns on your money
UBER has put up a great post. few small things to add. obviously the earlier you start the better and the earlier you start the more chance you have of risking some money in the knowledge if it goes t*ts up there will be time to make it up. the longer you leave it the more you need to save. a friend of mine was told not to get a pension but buy shares out of the money and hold them long term a good idea if you can pick a couple of good shares but not a tax efficient way to save. My pension plans is based on putting all my money on remy to be qpr`s and premier league top scorer this season.. easy money and tax free
i pay 25 dollars every week into a scheme here in new zealand when the 6 numbers plus bonus ball come out i will be retiring
