| Who thinks that their pension will pay out? 22:21 - Oct 2 with 9006 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 22:30 - Oct 2 with 5563 views | J2BLUE |
Either it won't, or inflation will have been so massive that it will be practically worthless. |  |
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| Who thinks that their pension will pay out? on 23:55 - Oct 2 with 5492 views | HARRY10 |
| Who thinks that their pension will pay out? on 22:30 - Oct 2 by J2BLUE |
Either it won't, or inflation will have been so massive that it will be practically worthless. |
Might have been an idea when most folk were so knackered after a lot of manual work that they would not be able to consider.
One man stuck his money away in a pension based of projected growth rates of 7%-10%
The oether invested in learning a skill that would not be replaced by automation and will carry on working doing less hours a week from his mid sixties onwards.
Who needs the same income when you are 86 as 66 ? |  | | |
| Who thinks that their pension will pay out? on 07:28 - Oct 3 with 5405 views | hampstead_blue |
Your pension will pay out.
However, it can only use the money you put in.
The problem is that interest rates are so low that the income will be bobbins. The difference between what a 1% interest rate and 5% can get you is huge.
This is the proce of a low interest rate economy.
Maybe look at taking the tax hit and investing in a higher yielding investment. |  |
| 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 08:04 - Oct 3 with 5366 views | connorscontract |
| Who thinks that their pension will pay out? on 07:28 - Oct 3 by hampstead_blue |
Your pension will pay out.
However, it can only use the money you put in.
The problem is that interest rates are so low that the income will be bobbins. The difference between what a 1% interest rate and 5% can get you is huge.
This is the proce of a low interest rate economy.
Maybe look at taking the tax hit and investing in a higher yielding investment. |
To clarify your last comment (for others, as I'm sure you know this):
There is no tax hit if you invest in certain higher yielding investments in a pension through a SIPP. In fact the opposite is true, basic rate tax is added to your investment (if you are a tax payer). When you reach 55 (or any time thereafter) up to 25% is available tax free as a lump sum, then the rest is payable as a pension and taxable as income like any other pension. Option of taking an annuity or investing in high yielding Shares or Income Funds/Unit Trusts.
Alternatively put everything you can into ISA's first for complete tax free flexibility, but without the Tax back boost at the beginning.
Obviously some higher yielding investments are not available through SIPP's and ISA's- fine wines, Art, Antiques etc. But a lot are available through Investment Funds eg Property, Start up tech businesses. | | | |
| Who thinks that their pension will pay out? on 08:16 - Oct 3 with 5344 views | hampstead_blue |
| Who thinks that their pension will pay out? on 08:04 - Oct 3 by connorscontract |
To clarify your last comment (for others, as I'm sure you know this):
There is no tax hit if you invest in certain higher yielding investments in a pension through a SIPP. In fact the opposite is true, basic rate tax is added to your investment (if you are a tax payer). When you reach 55 (or any time thereafter) up to 25% is available tax free as a lump sum, then the rest is payable as a pension and taxable as income like any other pension. Option of taking an annuity or investing in high yielding Shares or Income Funds/Unit Trusts.
Alternatively put everything you can into ISA's first for complete tax free flexibility, but without the Tax back boost at the beginning.
Obviously some higher yielding investments are not available through SIPP's and ISA's- fine wines, Art, Antiques etc. But a lot are available through Investment Funds eg Property, Start up tech businesses. |
the tax hit I was alluding to was not drawdown.
I was looking at the one off charge if you take the pot as a lump sum.
I would err against higher risk funds. A former client (when I was a wealth manager) put his SIPP into high risk funds just 12 months before he began his drawdown.....the year after he had taken a 10% cold bath.
This is typically the largest liquid investment people have so risk is risky!. | |
| 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 08:19 - Oct 3 with 5338 views | Axeldalai_lama |
| Who thinks that their pension will pay out? on 23:55 - Oct 2 by HARRY10 |
Might have been an idea when most folk were so knackered after a lot of manual work that they would not be able to consider.
One man stuck his money away in a pension based of projected growth rates of 7%-10%
The oether invested in learning a skill that would not be replaced by automation and will carry on working doing less hours a week from his mid sixties onwards.
Who needs the same income when you are 86 as 66 ? |
Blimey, can I have your crystal ball when you're done?!
What jobs are not going to be replaced by automaton in 60 years? Be handy to know.
Will there be enough of those to go around, and will keeping my job into my 80s and 90s stop many young people getting on the jobs ladder in the first place?
Doesn't seem like a rounded solution to the future of growing old.
You shouldn't expect ridiculous returns on your pension, but saying not to bother and use it to train seems a bit frivelous.
Having said all that, completely agree with the last point. You should not need as much money in retirement as when you worked, and had a family at home etc. A lot to do with home ownership though. If you've paid your mortgage off then you're not haemoraging money to the bank, and you can downsize and grab a chunk from the price difference. Not own a house and you're a bit more screwed. Though costs should still be less in retirement, compared to peak adult spending. |  | | |
| Who thinks that their pension will pay out? on 09:48 - Oct 3 with 5247 views | StokieBlue |
| Who thinks that their pension will pay out? on 23:55 - Oct 2 by HARRY10 |
Might have been an idea when most folk were so knackered after a lot of manual work that they would not be able to consider.
One man stuck his money away in a pension based of projected growth rates of 7%-10%
The oether invested in learning a skill that would not be replaced by automation and will carry on working doing less hours a week from his mid sixties onwards.
Who needs the same income when you are 86 as 66 ? |
"The oether invested in learning a skill that would not be replaced by automation and will carry on working doing less hours a week from his mid sixties onwards."
Can you think of many jobs which can't be automated?
SB |  |
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| Who thinks that their pension will pay out? on 09:50 - Oct 3 with 5238 views | Reuser_is_God |
| Who thinks that their pension will pay out? on 22:30 - Oct 2 by J2BLUE |
Either it won't, or inflation will have been so massive that it will be practically worthless. |
So your advice would be not to bother with a pension? [Post edited 3 Oct 2017 9:50]
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| Who thinks that their pension will pay out? on 09:51 - Oct 3 with 5229 views | Kieran_Knows |
| 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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That's me stuffed with 2 pensions then! |  |
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| Who thinks that their pension will pay out? on 09:56 - Oct 3 with 5220 views | Axeldalai_lama |
| Who thinks that their pension will pay out? on 09:48 - Oct 3 by StokieBlue |
"The oether invested in learning a skill that would not be replaced by automation and will carry on working doing less hours a week from his mid sixties onwards."
Can you think of many jobs which can't be automated?
SB |
Well quite, I have no idea which will not be automated. I'd guess that physical trades might do better than those computer based/ behind a desk. Automated office jobs over robot plumbers and electricians. In which case you'd have to stop doing thoses earlier anyway, which would defeat the point. | | | |
| Who thinks that their pension will pay out? on 10:01 - Oct 3 with 5210 views | slump |
I've lost count of the number of pensions that I have and yes, I should be looking into consolidating a few of them I suppose. Since my outlook on careers changed about 10 years ago I imagine that the number of compulsory pensions that I've accumulated in recent years will be pretty much worthless.
Other than that I have a final salary pension with 8 years contributions which will be worth SFA as I left there in '98 and a lump in a medium risk pot thar might pay out but I'm not relying on it.
I'll be working whilst I am fit enough to do so or until I peg it, albeit considerably less hours and responsibility if all goes well.
Everyone on a modest income (except coppers, teachers, civil servants etc,)who have attempted to make the conventional provisions for retirement will have to get their heads around working well into their seventies I imagine. |  |
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| Who thinks that their pension will pay out? on 10:11 - Oct 3 with 5182 views | Axeldalai_lama |
| Who thinks that their pension will pay out? on 10:01 - Oct 3 by slump |
I've lost count of the number of pensions that I have and yes, I should be looking into consolidating a few of them I suppose. Since my outlook on careers changed about 10 years ago I imagine that the number of compulsory pensions that I've accumulated in recent years will be pretty much worthless.
Other than that I have a final salary pension with 8 years contributions which will be worth SFA as I left there in '98 and a lump in a medium risk pot thar might pay out but I'm not relying on it.
I'll be working whilst I am fit enough to do so or until I peg it, albeit considerably less hours and responsibility if all goes well.
Everyone on a modest income (except coppers, teachers, civil servants etc,)who have attempted to make the conventional provisions for retirement will have to get their heads around working well into their seventies I imagine. |
I think you're basically okay if you own your own home, admittedly this is now on the decline. Downsizing will surely be the norm in the future to release some of the capital in your house.
I have an average pension and am in my mid 30s, and we plan to downsize once we retire and hopefully live well off the result. Maybe it will free up some of the housing stock for younger famillies coming through.
In my work I see so many older people on their own or in couples seemingly struggling in a family house which is starting to fall into disrepair. Not that they should be forced out or anything but I think the culture will change whether out of necessity or practicality.
Not that this addresses the pension issue for everyone, or that it's a foolproof plan, just a reality, I would guess, going forward. | | | |
| Who thinks that their pension will pay out? on 10:35 - Oct 3 with 5146 views | blue_oyster |
| Who thinks that their pension will pay out? on 07:28 - Oct 3 by hampstead_blue |
Your pension will pay out.
However, it can only use the money you put in.
The problem is that interest rates are so low that the income will be bobbins. The difference between what a 1% interest rate and 5% can get you is huge.
This is the proce of a low interest rate economy.
Maybe look at taking the tax hit and investing in a higher yielding investment. |
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. |  |
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| Who thinks that their pension will pay out? on 10:43 - Oct 3 with 5136 views | slump |
| 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. |
This post confirms that you read what you want to read, not what is written.
Thanks | |
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| Who thinks that their pension will pay out? on 10:49 - Oct 3 with 5117 views | blue_oyster |
| Who thinks that their pension will pay out? on 10:43 - Oct 3 by slump |
This post confirms that you read what you want to read, not what is written.
Thanks |
Or, possibly, that you didn't understand the question? | |
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| Who thinks that their pension will pay out? on 10:50 - Oct 3 with 5117 views | bluefunk |
| Who thinks that their pension will pay out? on 10:01 - Oct 3 by slump |
I've lost count of the number of pensions that I have and yes, I should be looking into consolidating a few of them I suppose. Since my outlook on careers changed about 10 years ago I imagine that the number of compulsory pensions that I've accumulated in recent years will be pretty much worthless.
Other than that I have a final salary pension with 8 years contributions which will be worth SFA as I left there in '98 and a lump in a medium risk pot thar might pay out but I'm not relying on it.
I'll be working whilst I am fit enough to do so or until I peg it, albeit considerably less hours and responsibility if all goes well.
Everyone on a modest income (except coppers, teachers, civil servants etc,)who have attempted to make the conventional provisions for retirement will have to get their heads around working well into their seventies I imagine. |
You might be surprised by the final salary pension - there are revaluation rules and 20years of those (almost) will have increased your entitlement significantly
Worth considering getting your various pension pots together too, so you have control |  | | |
| Who thinks that their pension will pay out? on 10:52 - Oct 3 with 5110 views | slump |
| Who thinks that their pension will pay out? on 10:49 - Oct 3 by blue_oyster |
Or, possibly, that you didn't understand the question? |
I understand that the question is based on your assumption and not that of the previous contributor. | |
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| Who thinks that their pension will pay out? on 10:54 - Oct 3 with 5100 views | blue_oyster |
| Who thinks that their pension will pay out? on 10:52 - Oct 3 by slump |
I understand that the question is based on your assumption and not that of the previous contributor. |
Of course my question is based on my assumptions. How can it not be? | |
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| Who thinks that their pension will pay out? on 10:56 - Oct 3 with 5095 views | slump |
| Who thinks that their pension will pay out? on 10:54 - Oct 3 by blue_oyster |
Of course my question is based on my assumptions. How can it not be? |
Was it ever in doubt? | |
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| Who thinks that their pension will pay out? on 10:56 - Oct 3 with 5094 views | bluefunk |
| Who thinks that their pension will pay out? on 08:16 - Oct 3 by hampstead_blue |
the tax hit I was alluding to was not drawdown.
I was looking at the one off charge if you take the pot as a lump sum.
I would err against higher risk funds. A former client (when I was a wealth manager) put his SIPP into high risk funds just 12 months before he began his drawdown.....the year after he had taken a 10% cold bath.
This is typically the largest liquid investment people have so risk is risky!. |
Why would you take a tax hit removing funds from a pension when you are able to view the pension pot almost as a bank account and draw down income as required?
As a pension grows virtually tax free the return would be better than could be achieved by the same investment in anything other than an ISA
As for erring against high risk funds, if the income provision is properly planned for anything significant then there is a place for them for funds which are not going to be accessed immediately. | | | |
| Who thinks that their pension will pay out? on 11:13 - Oct 3 with 5055 views | SaleAway |
| Who thinks that their pension will pay out? on 10:54 - Oct 3 by blue_oyster |
Of course my question is based on my assumptions. How can it not be? |
the point being that your question started
"If your pension is guaranteed to pay out at least what you have put in"
whereas the original post said
"Your pension will pay out.
However, it can only use the money you put in. "
so your question was not based on what the post said...
The answer to what you probably meant is:
The amount your pension pays out is a function of the amount you pay in, and the success of the investments that are made on that fund. The predicted shortfall is that the amount you need to live on in retirement is likely not to be reached by those saving for contributions based pensions( part of this is because low interest rates mean that a lot of investments are not making the sort of money that you need for your fund to not only match inflation, but grow as well. ). HTH | |
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| Who thinks that their pension will pay out? on 11:25 - Oct 3 with 5028 views | Axeldalai_lama |
| Who thinks that their pension will pay out? on 10:50 - Oct 3 by bluefunk |
You might be surprised by the final salary pension - there are revaluation rules and 20years of those (almost) will have increased your entitlement significantly
Worth considering getting your various pension pots together too, so you have control |
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. | | | |
| Who thinks that their pension will pay out? on 11:27 - Oct 3 with 5022 views | slump |
| Who thinks that their pension will pay out? on 10:50 - Oct 3 by bluefunk |
You might be surprised by the final salary pension - there are revaluation rules and 20years of those (almost) will have increased your entitlement significantly
Worth considering getting your various pension pots together too, so you have control |
I need to do this yes.
It's such a bore though
Thanks | |
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| Who thinks that their pension will pay out? on 11:32 - Oct 3 with 5013 views | blue_oyster |
| Who thinks that their pension will pay out? on 11:13 - Oct 3 by SaleAway |
the point being that your question started
"If your pension is guaranteed to pay out at least what you have put in"
whereas the original post said
"Your pension will pay out.
However, it can only use the money you put in. "
so your question was not based on what the post said...
The answer to what you probably meant is:
The amount your pension pays out is a function of the amount you pay in, and the success of the investments that are made on that fund. The predicted shortfall is that the amount you need to live on in retirement is likely not to be reached by those saving for contributions based pensions( part of this is because low interest rates mean that a lot of investments are not making the sort of money that you need for your fund to not only match inflation, but grow as well. ). HTH |
Thanks, I wasn't sure how much simpler I could make the question. What I was after is what the shortfall is, and whether it's based on a guaranteed income, like final salary, or a perceived required amount of which we don't exactly know. Sounds like it's a mixture of both. | |
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| Who thinks that their pension will pay out? on 11:37 - Oct 3 with 5004 views | SaleAway |
| Who thinks that their pension will pay out? on 11:32 - Oct 3 by blue_oyster |
Thanks, I wasn't sure how much simpler I could make the question. What I was after is what the shortfall is, and whether it's based on a guaranteed income, like final salary, or a perceived required amount of which we don't exactly know. Sounds like it's a mixture of both. |
"pensions shortfall" is usually used in 2 separate ways. For final salary pensions funds, its usually a problem that the fund is not valuable enough to pay the amount that the members are due... this is a problem for the provider ( in theory).
For pensioners, pensions shortfall is the difference between the income that your pension can provide you, and what you need to live the retirement you want. This is the pensioners problem. | |
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