| Who thinks that their pension will pay out? 22:21 - Oct 2 with 9023 views | BanksterDebtSlave |
http://www.mauldineconomics.com/frontlinethoughts/
"UK Time Bomb
The WEF study shows that the United Kingdom presently has a $4 trillion retirement savings shortfall, which is projected to rise 4% a year and reach $33 trillion by 2050. This in a country whose total GDP is $3 trillion. That means the shortfall is already bigger than the entire economy, and even if inflation is modest, the situation is going to get worse. Further, these figures are based mostly on calculations made before the UK decided to leave the European Union. Brexit is a major economic realignment that could certainly change the retirement outlook. Whether it would change it for better or worse, we don’t yet know." |  |
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| Who thinks that their pension will pay out? on 11:41 - Oct 3 with 3423 views | trncbluearmy |
| Who thinks that their pension will pay out? on 11:27 - Oct 3 by slump |
I need to do this yes.
It's such a bore though
Thanks |
That`s a really sad reply,
Blufunk is right that FS scheme will be worth a lot more then peanuts and the others combined and invested will also be very much worth doing |  | | |
| Who thinks that their pension will pay out? on 11:58 - Oct 3 with 3409 views | slump |
| Who thinks that their pension will pay out? on 11:41 - Oct 3 by trncbluearmy |
That`s a really sad reply,
Blufunk is right that FS scheme will be worth a lot more then peanuts and the others combined and invested will also be very much worth doing |
The thanks was sincere, I really should get my head around it and sort it all out.
Admin has never been my strong point and probably to my long term financial detriment. Which I guess is a but sad, but I'm not fortunately. |  |
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| Who thinks that their pension will pay out? on 12:27 - Oct 3 with 3400 views | britbiker |
I've been paying £250 per month into my personal pension for the last 20 years. Which has been a struggle. I turn 55 next April which is the date set for normal retirement (not that I will be drawing it then). I'm actually more excited about not having to pay the contributions any more than receiving the pension. |  | | |
| Who thinks that their pension will pay out? on 13:30 - Oct 3 with 3373 views | bluefunk |
| Who thinks that their pension will pay out? on 11:25 - Oct 3 by Axeldalai_lama |
As an aside, I have 6 years of a final salary pension, until it changed for the rest of the time to standard, and I'll probably leave that job in the next year or so, maybe going part time whilst looking after kids.
In general terms, obviously, once you leave does it just go up with inflation, rpi or whatever? If I were to go part time would they base the final salary pro rata or on the last full year I work.
Thanks in advance and understand it's dependent on specifics, and might not be your area. |
PM sent |  | | |
| Who thinks that their pension will pay out? on 13:38 - Oct 3 with 3361 views | J2BLUE |
| Who thinks that their pension will pay out? on 09:50 - Oct 3 by Reuser_is_God |
So your advice would be not to bother with a pension? [Post edited 3 Oct 2017 9:50]
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Well, my opinion (based on my circumstances and beliefs ) for what it's worth, would be to put in whatever your employer will match as that is an instant return on your money but to put any further savings for retirement into investments that you control. Obviously you need to do your research and understand any investment you make.
Personally unless I found a value investment that I considered very safe I would be overpaying my mortgage. Depending on your interest rate and how long you have to go it can be a decent investment. I have 20 years left at 2.15% so anything I overpay will 'return' an instant saving on future interest payments. There are other things to consider with this though like your inflation/interest rate expectations and how long you are locked into your current rate.
Basically look at the numbers and the national debt and decide if you think there will be big changes or not by the time you get to retirement. If you do then take control of your own finances if you are confident in what you're doing. If you think we'll see the 2% average inflation each year that the BoE want and you'll get your retirement money then carry on doing whatever you're doing. [Post edited 3 Oct 2017 14:19]
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| Who thinks that their pension will pay out? on 13:47 - Oct 3 with 3350 views | WD19 |
| Who thinks that their pension will pay out? on 13:38 - Oct 3 by J2BLUE |
Well, my opinion (based on my circumstances and beliefs ) for what it's worth, would be to put in whatever your employer will match as that is an instant return on your money but to put any further savings for retirement into investments that you control. Obviously you need to do your research and understand any investment you make.
Personally unless I found a value investment that I considered very safe I would be overpaying my mortgage. Depending on your interest rate and how long you have to go it can be a decent investment. I have 20 years left at 2.15% so anything I overpay will 'return' an instant saving on future interest payments. There are other things to consider with this though like your inflation/interest rate expectations and how long you are locked into your current rate.
Basically look at the numbers and the national debt and decide if you think there will be big changes or not by the time you get to retirement. If you do then take control of your own finances if you are confident in what you're doing. If you think we'll see the 2% average inflation each year that the BoE want and you'll get your retirement money then carry on doing whatever you're doing. [Post edited 3 Oct 2017 14:19]
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This is where the forum can be a bit dangerous in my opinion...
Agree with what you say re:overpaying/clearing mortgages. That is never a bad thing....
...but ...why would paying (up to) 55% NI/Tax on a chunk of money to get your hands on it and then invest it privately be so much better an option than paying it directly into a pension free of tax? Why would the performance of an investment fund pension be so much worse than your own personal investment choices?
Personally I am trying to cover all bases, paying the max permissible into a pension whilst maxing out ISAs etc........but not everybody is in that position and I would never discourage ppl from putting a decent amount in a pension. |  | | |
| Who thinks that their pension will pay out? on 13:52 - Oct 3 with 3346 views | bluefunk |
| Who thinks that their pension will pay out? on 13:38 - Oct 3 by J2BLUE |
Well, my opinion (based on my circumstances and beliefs ) for what it's worth, would be to put in whatever your employer will match as that is an instant return on your money but to put any further savings for retirement into investments that you control. Obviously you need to do your research and understand any investment you make.
Personally unless I found a value investment that I considered very safe I would be overpaying my mortgage. Depending on your interest rate and how long you have to go it can be a decent investment. I have 20 years left at 2.15% so anything I overpay will 'return' an instant saving on future interest payments. There are other things to consider with this though like your inflation/interest rate expectations and how long you are locked into your current rate.
Basically look at the numbers and the national debt and decide if you think there will be big changes or not by the time you get to retirement. If you do then take control of your own finances if you are confident in what you're doing. If you think we'll see the 2% average inflation each year that the BoE want and you'll get your retirement money then carry on doing whatever you're doing. [Post edited 3 Oct 2017 14:19]
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when did you qualify as an adviser? | | | |
| Who thinks that their pension will pay out? on 14:14 - Oct 3 with 3321 views | J2BLUE |
| Who thinks that their pension will pay out? on 13:47 - Oct 3 by WD19 |
This is where the forum can be a bit dangerous in my opinion...
Agree with what you say re:overpaying/clearing mortgages. That is never a bad thing....
...but ...why would paying (up to) 55% NI/Tax on a chunk of money to get your hands on it and then invest it privately be so much better an option than paying it directly into a pension free of tax? Why would the performance of an investment fund pension be so much worse than your own personal investment choices?
Personally I am trying to cover all bases, paying the max permissible into a pension whilst maxing out ISAs etc........but not everybody is in that position and I would never discourage ppl from putting a decent amount in a pension. |
You're right, this is where the forum can be a bit dangerous when people read your post, ignore a good chunk of it and then respond to only their cherry picked bits.
I made it clear that he should think about whether he will actually see his money when it comes time to retire. If he reaches the conclusion that he won't then saving himself some tax on it to begin with would be worthless. I encouraged him to look at his situation and combine it with his expectations and then decide what he should do for himself. I even qualified what I would do by telling him to consider interest rates, his mortgage deal and inflation expectations etc. That was the message there to look at the whole situation for himself and decide what to do for himself. You mention maxing out an ISA. Is that a cash ISA? What rate are you getting? I can almost guarantee you it's below current inflation forecasts so that's not good advice either is it? | |
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| Who thinks that their pension will pay out? on 14:17 - Oct 3 with 3313 views | J2BLUE |
| Who thinks that their pension will pay out? on 13:52 - Oct 3 by bluefunk |
when did you qualify as an adviser? |
I shouldn't have worded it 'my advice' but 'what I think'. Clearly i'm not an adviser, they probably wouldn't encourage anyone to think for themselves and do what they think is best.
No one is going to follow my ideas based on a forum post with virtually no information about their situation. It was based on my circumstances and beliefs about the future which I should have made more clear but it was fairly obvious by the repeated mentions of acting based on what you think will happen. | |
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| Who thinks that their pension will pay out? on 14:22 - Oct 3 with 3306 views | bluefunk |
| Who thinks that their pension will pay out? on 14:17 - Oct 3 by J2BLUE |
I shouldn't have worded it 'my advice' but 'what I think'. Clearly i'm not an adviser, they probably wouldn't encourage anyone to think for themselves and do what they think is best.
No one is going to follow my ideas based on a forum post with virtually no information about their situation. It was based on my circumstances and beliefs about the future which I should have made more clear but it was fairly obvious by the repeated mentions of acting based on what you think will happen. |
Glad we cleared that up | | | |
| Who thinks that their pension will pay out? on 14:30 - Oct 3 with 3291 views | J2BLUE |
| Who thinks that their pension will pay out? on 14:22 - Oct 3 by bluefunk |
Glad we cleared that up |
Good.
Do you have anything to add about whether people will see their pensions in 35+ years and whether they will be worth a decent amount in 2052 pounds? | |
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| Who thinks that their pension will pay out? on 14:34 - Oct 3 with 3284 views | PJH |
| Who thinks that their pension will pay out? on 14:30 - Oct 3 by J2BLUE |
Good.
Do you have anything to add about whether people will see their pensions in 35+ years and whether they will be worth a decent amount in 2052 pounds? |
I hope that I am still receiving pensions in 35 years time because I will then be 101.
Probably not going to every ITFC away league game then though. |  | | |
| Who thinks that their pension will pay out? on 14:35 - Oct 3 with 3283 views | WD19 |
| Who thinks that their pension will pay out? on 14:14 - Oct 3 by J2BLUE |
You're right, this is where the forum can be a bit dangerous when people read your post, ignore a good chunk of it and then respond to only their cherry picked bits.
I made it clear that he should think about whether he will actually see his money when it comes time to retire. If he reaches the conclusion that he won't then saving himself some tax on it to begin with would be worthless. I encouraged him to look at his situation and combine it with his expectations and then decide what he should do for himself. I even qualified what I would do by telling him to consider interest rates, his mortgage deal and inflation expectations etc. That was the message there to look at the whole situation for himself and decide what to do for himself. You mention maxing out an ISA. Is that a cash ISA? What rate are you getting? I can almost guarantee you it's below current inflation forecasts so that's not good advice either is it? |
No, of course it isn't a cash ISA. If you had read my post correctly you wouldn't have worked that out for yourself. Much like others with your 'advice' posts. | | | |
| Who thinks that their pension will pay out? on 15:43 - Oct 3 with 3238 views | bluefunk |
| Who thinks that their pension will pay out? on 14:30 - Oct 3 by J2BLUE |
Good.
Do you have anything to add about whether people will see their pensions in 35+ years and whether they will be worth a decent amount in 2052 pounds? |
I don’t have a crystal ball so I can’t foresee what will happen in the future, but you asked so...
In relation to State pensions, there is little doubt that the state pension age will continue to rise, as life expectancy is so far ahead of that when they were originally introduced. So it would be unwise to rely on that for your retirement. That said, in relation to your own views you appear to be confusing State and Personal pensions and a little underinformed about how pensions can be accessed.
As the Tax benefits for personal pension contributions and tax rules for investments within a personal pension are very attractive I cannot see why they should be ignored in favour of other collectives (for example) particularly as they can be accessed pretty much as you wish once you reach 55 currently, albeit that you will pay back some of the original tax saving. | | | |
| Who thinks that their pension will pay out? on 15:55 - Oct 3 with 3226 views | hampstead_blue |
| Who thinks that their pension will pay out? on 10:35 - Oct 3 by blue_oyster |
If your pension is guaranteed to pay out at least what you have put in, where is the 'shortfall'? Is this an assumed amount? Thanks. |
When you set-up a money purchase scheme it shows levels of income you can expect if you have three assumes levels of growth AND you carry on paying in the premiums.
That has changed over the years.
It used to be 5, 7, 9% pa which over time gives a tidy compounded return.
If you invest your money into products which give steady returns and teh charges (implemented by the pension provider) are not too high, then you will enjoy a good return on your investment.
If you use low risk investments which rely heavily on interest rates then you will get a comparitively lower return.
The only way you lose money is if you go stupid and do what my former client did.. |  |
| Assumption is to make an ass out of you and me.
Those who assume they know you, when they don't are just guessing.
Those who assume and insist they know are daft and in denial.
Those who assume, insist, and deny the truth are plain stupid.
Those who assume, insist, deny the truth and tell YOU they know you (when they don't) have an IQ in the range of 35-49.
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| Who thinks that their pension will pay out? on 16:04 - Oct 3 with 3215 views | blue_oyster |
| Who thinks that their pension will pay out? on 15:55 - Oct 3 by hampstead_blue |
When you set-up a money purchase scheme it shows levels of income you can expect if you have three assumes levels of growth AND you carry on paying in the premiums.
That has changed over the years.
It used to be 5, 7, 9% pa which over time gives a tidy compounded return.
If you invest your money into products which give steady returns and teh charges (implemented by the pension provider) are not too high, then you will enjoy a good return on your investment.
If you use low risk investments which rely heavily on interest rates then you will get a comparitively lower return.
The only way you lose money is if you go stupid and do what my former client did.. |
Thanks. It appears that returns are slowly being whittled away due to life expectancy increases and poor return in the once gold-standard equities market. Rather a marked difference to the OP's description of a 'timebomb'. |  |
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| Who thinks that their pension will pay out? on 16:16 - Oct 3 with 3192 views | StokieBlue |
| Who thinks that their pension will pay out? on 16:04 - Oct 3 by blue_oyster |
Thanks. It appears that returns are slowly being whittled away due to life expectancy increases and poor return in the once gold-standard equities market. Rather a marked difference to the OP's description of a 'timebomb'. |
Poor return on the equities markets?
We are currently in the 4th longest bull market in history, returns have been excellent.
It's the first point which is the issue - life expectancy increases mean the same money has to last longer.
SB |  |
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| Who thinks that their pension will pay out? on 16:41 - Oct 3 with 3167 views | J2BLUE |
| Who thinks that their pension will pay out? on 15:43 - Oct 3 by bluefunk |
I don’t have a crystal ball so I can’t foresee what will happen in the future, but you asked so...
In relation to State pensions, there is little doubt that the state pension age will continue to rise, as life expectancy is so far ahead of that when they were originally introduced. So it would be unwise to rely on that for your retirement. That said, in relation to your own views you appear to be confusing State and Personal pensions and a little underinformed about how pensions can be accessed.
As the Tax benefits for personal pension contributions and tax rules for investments within a personal pension are very attractive I cannot see why they should be ignored in favour of other collectives (for example) particularly as they can be accessed pretty much as you wish once you reach 55 currently, albeit that you will pay back some of the original tax saving. |
'That said, in relation to your own views you appear to be confusing State and Personal pensions and a little underinformed about how pensions can be accessed.'
Fair enough, I disagree based on my research but not saying my way is the absolute best way for everyone. I think your crystal ball comment is a bit odd because you can still have an opinion and do your own research to come up with your choice of method which you'll clearly done...without a crystal ball. | |
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| Who thinks that their pension will pay out? on 16:46 - Oct 3 with 3156 views | J2BLUE |
| Who thinks that their pension will pay out? on 16:16 - Oct 3 by StokieBlue |
Poor return on the equities markets?
We are currently in the 4th longest bull market in history, returns have been excellent.
It's the first point which is the issue - life expectancy increases mean the same money has to last longer.
SB |
With millions of baby boomers those gains might well be lost. Gains are only gains if you take the profits.
'life expectancy increases mean the same money has to last longer'
This is why I would prefer to invest in cash flowing assets like quality dividend paying companies and real estate in my own control. Not sure I feel comfortable with investing in buy to let (something i've changed my mind about quite a bit without ever owning a rental property) but I quite like a few REITS outside of retail/residential sectors. | |
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