WeeMentalDavie Posted February 8, 2017 Share Posted February 8, 2017 For those thinking of taking drawdowns from their pension pots, you should be aware that it's 25% of each drawdown that is tax free so if you take 25% of the full pot then you will pay tax on 75% of that 0 Quote Link to comment Share on other sites More sharing options...
Blootoon87 Posted February 8, 2017 Share Posted February 8, 2017 I'm pretty sure I'll be skint as a pensioner. That's for future me to worry about though, and he'll be a miserable old fucker anyway. 0 Quote Link to comment Share on other sites More sharing options...
Suspect Device Posted March 23, 2017 Share Posted March 23, 2017 No surprise that they're talking about raising the pension age to 70 again. http://www.bbc.co.uk/news/business-39352654 It will keep on creeping up. 0 Quote Link to comment Share on other sites More sharing options...
beefybake Posted March 23, 2017 Share Posted March 23, 2017 On 2/6/2017 at 16:16, Granny Danger said: The pension shortfall is quite frightening but the political response that may flow from it may be equally concerning. I can foresee a right-wing response that seeks to drive a wedge between 'wealthy' pensioners and those less well off (just look at the title of Willets' book mention in the Guardian article). In doing so they will seek to ignore the fact that the UK state pension is not particularly generous when compared to other economically developed countries. Any serious response to the pension crisis will need to address wealth inequality for those of working age. People working for the minimum wage can hardly be expected to put much/anything aside for old age, even if they do they won't build up much of a pension pot. I realise most of these points would be more at home on the Politics Forum, but any debate about this issue is largely a political one. 'Bout a year ago, I was driving home one Sunday.., Radio 4 on the radio. Some phone-in program where an expert answered questions about financial stuff. A lot of the questions were about pensions, and welfare. The expert was an adviser from what I understand is a reasonably respectable outfit, Hargreaves Lansdown. I particularly remember, after answering several questions, he came out with almost these exact words.... "To make this clear, no matter what you read in some newspapers, or hear from some politicians..., compared with other West European countries, the welfare, benefits and pensions systems in this country are frugal.." In my opinion, with half the country working multiple 'jobs', zero hours contracts, just to stay afloat, something major has to change. 0 Quote Link to comment Share on other sites More sharing options...
Granny Danger Posted March 23, 2017 Share Posted March 23, 2017 17 minutes ago, beefybake said: 'Bout a year ago, I was driving home one Sunday.., Radio 4 on the radio. Some phone-in program where an expert answered questions about financial stuff. A lot of the questions were about pensions, and welfare. The expert was an adviser from what I understand is a reasonably respectable outfit, Hargreaves Lansdown. I particularly remember, after answering several questions, he came out with almost these exact words.... "To make this clear, no matter what you read in some newspapers, or hear from some politicians..., compared with other West European countries, the welfare, benefits and pensions systems in this country are frugal.." In my opinion, with half the country working multiple 'jobs', zero hours contracts, just to stay afloat, something major has to change. The biggest misconception is about the well off pensioners, a point repeatedly referred to in the Politics Forum. Yes there are many well off pensioners, some are incredibly well off, but many are living in abject poverty. Not surprisingly the most impoverished pensioners are largely those who worked in low paid jobs - you don't need to be a genius to understand the correlation. This is from the BBC wesite today http://www.bbc.co.uk/news/business-39352654 This is from 13 January. http://www.bbc.co.uk/news/business-38609422 A 25 year old wanting to get a pension that would meet the pension 'gap' would need to start saving £246 each month net of tax! I trust all you 25 year P&Brs are managing to do this without any problem. 0 Quote Link to comment Share on other sites More sharing options...
mizfit Posted March 23, 2017 Share Posted March 23, 2017 I can't even afford to get a mortgage, let alone save for a pension deficit. f**k this. 0 Quote Link to comment Share on other sites More sharing options...
Blootoon87 Posted March 23, 2017 Share Posted March 23, 2017 What are the chances of reaching pension age anyway? 50/50? 0 Quote Link to comment Share on other sites More sharing options...
Ross. Posted March 23, 2017 Share Posted March 23, 2017 44 minutes ago, Blootoon87 said: What are the chances of reaching pension age anyway? 50/50? Better than even chance these days: http://www.bbc.co.uk/news/uk-scotland-38142537 0 Quote Link to comment Share on other sites More sharing options...
KnightswoodBear Posted March 23, 2017 Share Posted March 23, 2017 Just now, Ross. said: Better than even chance these days: http://www.bbc.co.uk/news/uk-scotland-38142537 I'm shite at gambling. 0 Quote Link to comment Share on other sites More sharing options...
Ross. Posted March 23, 2017 Share Posted March 23, 2017 3 minutes ago, KnightswoodBear said: I'm shite at gambling. I probably fund the William Hills pension plan single handedly. 0 Quote Link to comment Share on other sites More sharing options...
resk Posted March 23, 2017 Share Posted March 23, 2017 There's a school of thought that says that full tax relief on additional pension contributions might not be available forever. Ie some government in the future may reduce the tax relief. So if you can afford it, it's sensible to consider making additional contributions now. 0 Quote Link to comment Share on other sites More sharing options...
DI Bruce Robertson Posted March 23, 2017 Share Posted March 23, 2017 I plan on taking out the largest possible personal loan when I'm 64, at numerous banks, then killing myself the day I turn 65. If the coke & hookers haven't killed me in the intervening period. Whatever is left will be my legacy. 0 Quote Link to comment Share on other sites More sharing options...
Granny Danger Posted March 23, 2017 Share Posted March 23, 2017 1 hour ago, Blootoon87 said: What are the chances of reaching pension age anyway? 50/50? Saw something on the BBC recently suggesting that anyone born after 2000 has a 50/50 chance of reaching 100. 5 minutes ago, resk said: There's a school of thought that says that full tax relief on additional pension contributions might not be available forever. Ie some government in the future may reduce the tax relief. So if you can afford it, it's sensible to consider making additional contributions now. Tax relief on pension contributions is a tricky one, costs a fortune in lost revenue but withdrawing or reducing it could impact on folks willingness to save as opposed to be reliant on further state aid down the line. 0 Quote Link to comment Share on other sites More sharing options...
Hedgecutter Posted March 4, 2020 Share Posted March 4, 2020 (edited) Noob question, but is there not the serious risk of your pension pot (that you contributed a whack of your income towards) being worth tuppence in the future due to inflation, as measured by the increasing price of Space Raiders? Is it better to invest in things now that will increase in value with time? For example, a £40k pot in the 80s (which would have taken a decent chunk of your wage to save up for back then) could have bought you a decent house that would now be worth £200k+ (equivalent to 10 years worth of comfortable retirement living). However, if you had access to the £40k pot now, it could just get you a one bedroom flat in the sh*te part of town (equivalent to just two years of comfortable retirement living). Edited March 4, 2020 by Hedgecutter 0 Quote Link to comment Share on other sites More sharing options...
Homer Thompson Posted March 4, 2020 Share Posted March 4, 2020 6 minutes ago, Hedgecutter said: Noob question, but is there not the serious risk of your pension pot (that you contributed a whack of your income towards) being worth tuppence in the future due to inflation? Is it better to invest in things now that will increase in value with time? For example, a £40k pot in the 80s (which would have taken a decent chunk of your wage to save up for back then) could have bought you a decent house that would now be worth £200k+ (equivalent to 10 years worth of comfortable retirement living). However, if you had access to the £40 pot now, it would just get you a one bedroom flat in the sh*te part of town (equivalent to just two years of comfortable retirement living). Your pension pot gets invested all the time, so should increase over time. You should be able to see the predicted value of your pot at retirement age. If you have £40k just lying around then you could invest it in a property instead of your pension pot. Most people dont, so pay into pensions each month. 1 Quote Link to comment Share on other sites More sharing options...
Mallo_Madrid Posted March 4, 2020 Share Posted March 4, 2020 (edited) 1 hour ago, Hedgecutter said: Noob question, but is there not the serious risk of your pension pot (that you contributed a whack of your income towards) being worth tuppence in the future due to inflation, as measured by the increasing price of Space Raiders? Is it better to invest in things now that will increase in value with time? For example, a £40k pot in the 80s (which would have taken a decent chunk of your wage to save up for back then) could have bought you a decent house that would now be worth £200k+ (equivalent to 10 years worth of comfortable retirement living). However, if you had access to the £40k pot now, it could just get you a one bedroom flat in the sh*te part of town (equivalent to just two years of comfortable retirement living). It really depends on how and where your pension fund is invested and what risk you are willing to take with it. Ideally they would be diversified over a wide range of funds in line with you risk profile. Even low risk funds are designed to outstrip inflation in the long term. What you don't want to be doing is investing your pension in cash funds. Edited March 4, 2020 by Mallo_Madrid 2 Quote Link to comment Share on other sites More sharing options...
Homer Thompson Posted March 4, 2020 Share Posted March 4, 2020 18 minutes ago, Mallo_Madrid said: It really depends on how and where your pension fund is invested and what risk you are willing to take with it. Ideally they would be diversified over a wide range of funds in line with you risk profile. Even low risk funds are designed to outstrip inflation in the long term. What you don't want to be doing is investing your pension in cash funds. Just checked one of mine - its 77% equity, 22% fixed income and 1% cash. I think Im on a fairly conservative plan 0 Quote Link to comment Share on other sites More sharing options...
UsedToGoToCentralPark Posted March 4, 2020 Share Posted March 4, 2020 Just checked one of mine - its 77% equity, 22% fixed income and 1% cash. I think Im on a fairly conservative planI should really login and check mine, back when I was younger I reassigned a chunk of my lifestyle fund into a high risk fund. 0 Quote Link to comment Share on other sites More sharing options...
Homer Thompson Posted March 4, 2020 Share Posted March 4, 2020 Just now, MixuFixit said: That looks pretty high risk to me tbh. Depends when you're intending to retire though. Wont be for another 20 years unfortunately. I double checked and its supposed to be middle of the road - neither high risk or "safe". 0 Quote Link to comment Share on other sites More sharing options...
Guest bernardblack Posted March 4, 2020 Share Posted March 4, 2020 Adding to the noob questions.....My pensions seems to fluctuate throughout the month...and is down a chunk this month.Is that related to the pound struggling/economy going wild due to Coronavirus etc? 0 Quote Link to comment Share on other sites More sharing options...
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