Pensions

[Tashyboy]

My biggest fear on pensions is living long enough to spend what you put into it. I aim over the next 11 years to put as much as I can (25-30%, my employer also pay 11%) into mine to enable me to draw a decent chunk as a lump sum at 55 then see what happens.

Val, for me pensions are a bit eeny meeny miny mo.
you never know how long you are going to live, will you be able to drag a pension. Decisions decisions. Me I have been dragging one of my pensions since Aug 2015, my others materialise over the next few years. I am 54 next month. The bottom line is, no one has a degree in hindsight.
Missis T finishes from the NHS in July and cannot wait to finish.
so combined with my pensions and Missis Ts. We will be comfortable but with hindsight I wish I had paid into AVCs ( added voluntary contributions).
Re your pension Val in essence you are getting a 11% return on your pension contributions, you would not 11% on the high street.
PS, whilst sorting out your pensions my other bit of old scrote advice is to make sure your will is in order as well, which will tie in with said pension/s

 

[Doon frae Troon]

As a retiree you will be pleasantly surprised how cheap it is to live.........my only real outgoings are the poll tax, utilities and running costs of two cars.
In my opinion it is a big mistake to carry any debt into retirement.

 

[Mattyboy]

PS, whilst sorting out your pensions my other bit of old scrote advice is to make sure your will is in order as well, which will tie in with said pension/s

Wise words from Tash - Pensions are usually written under trust so would not normally form part of your estate and suffer Inheritance Tax but make sure your Nomination forms for your pensions are done and up to date! :thup:

 

[Tashyboy]

PS, whilst sorting out your pensions my other bit of old scrote advice is to make sure your will is in order as well, which will tie in with said pension/s

Wise words from Tash - Pensions are usually written under trust so would not normally form part of your estate and suffer Inheritance Tax but make sure your Nomination forms for your pensions are done and up to date! :thup:

Cheers Matty coz ave started on the red stuff and by now that normally means verbal Rammel.

 

[SwingsitlikeHogan]

Looking at what you posted earlier Hugh, i.e. the sums, it might be worth taking a smaller annuity than you need but using a percentage of the 25% you can take tax free to top up the annuity to a level you're comfortable with. Its a more tax efficient way.

BTW, I'm an engineer, not a financial consultant - find the right person for the advice...

Thanks Sir (engineers are practical and pragmatic - as well as smart ) - we got on board with a Financial Consultant when I decided to take one of my defined contribution schemes out of the original provider - I took 25% tax free and have invested the rest.

It's the other now quite largish pot that I have to decide what to do with and how to use it to up our final salary pensions. Going by our other posters 35% suggestion a top up probably not be needed that much once state pensions kick in also.

 

[Old Skier]

my only real outgoings are the poll tax,

Now now.

 

[SteveJay]

Interesting the 35% figure - which obv. means £35k on £100k gross. Would that £35k include state pensions - so £12.5k for a couple in retirement on full basic state pension.

That was just an example of what might work for me, and didn't include either of our state pensions (as we would both be retired for c 10 years before thats payable).

Will depend on individual circumstances, but without mortgage costs it makes a big difference. Just suggesting people should look closely at their monthly outgoings and consider what they will look like once retired.

Everyone's different of course, but what seems quite a scary fall in income might not be that bad - as Doon Frae pointed out above!