Pension options as ltd

[gingerjedi]

I have been contracting for 3 years now and have not bothered to set up any sort of pension yet, I was going to start a stakeholder but I am unsure of the differences in terms of contributions and relief from working under an umbrella (currently) and having a ltd company which I plan to do now.

Is there a guide to this? Any advice?

[Robwg]

I have one setup through a financial advisor (and my accountant) - and it just comes out as a business expense - so no tax paid on it.

[lukemg]

Been using Standard Life Stakeholder (thanks for the shares, my plan worked) but in April I am switching to a low-cost SIPP and some general multi-manager funds. I want to see where the cash is being invested and don't trust the big pension companies to get anything more than very average returns.
I am only chucking 2880 in (topped up to 3600) because I want control of the money, therefore I am chucking 7k into share ISA's which I expect to keep till retirement and milk thereafter.

[gingerjedi]

Been using Standard Life Stakeholder (thanks for the shares, my plan worked) but in April I am switching to a low-cost SIPP and some general multi-manager funds. I want to see where the cash is being invested and don't trust the big pension companies to get anything more than very average returns.
I am only chucking 2880 in (topped up to 3600) because I want control of the money, therefore I am chucking 7k into share ISA's which I expect to keep till retirement and milk thereafter.

I'm thinking along the same lines, a small pension fund for back up so I can at least eat and pay the bills, on top of that property and share ISA's for the big bucks.

[lukemg]

After seeing my parents experience and despite the doom-mongering 'you will all be living in poverty' articles, I think people over-estimate the amount of cash they need in retirement to maintain lifestyle.
They equate it to current life but all your big payments go - house, kids, probably car. Leaving Council Tax and holidays. In addition people tend to stop lashing hundreds on party nights out etc.
Anyone with decent investments for 20 years starts to see all the compounding and returns kicking in and possibly inherits a decent sum and suddenly they have lots more cash than they need !
Yes I realise this is a cosy middle-class example of events (but we are contractors).
I was looking at bailing at 60 but I am thinking down a couple of years and maybe even 55 (I am expecting to be struggling to find work then anyway !)
What the hell do I need to save up for, the kids will still get plenty and will get their share as they go along anyway. You get screwed for anything over 300k anyway, try to enjoy it on the way ! Note - I am struggling to have this attitude, because a nice warchest gives you security but I'm trying !

[css_jay99]

Hi guys,

I have a query regarding making payments into a private pension plan and would like to have an Idea what amount or percentage I should be putting in monthly, after all we all are not getting young!

cheers


css_jay99

[Bluebird]

Hi guys,

I have a query regarding making payments into a private pension plan and would like to have an Idea what amount or percentage I should be putting in monthly, after all we all are not getting young!

cheers


css_jay99

all depends on when you want to retire and how much you want to live on when you do - the longer you leave it the more you need to pay.

[css_jay99]

all depends on when you want to retire and how much you want to live on when you do - the longer you leave it the more you need to pay.

The problem is that I dont seem to have any confidence in pension system state or private, bcos i just think that in 20yrs time they could get it all wrong and we are the ones that are going to suffer.

I am on the assumption that If a person manages to buy 1 or 2 more properties and lets them out, that the rental income on retirement ( assuming motgage paid off) will be more than adequate to live on as a pensioner irrespective of cost of living. Afterall most (Normal) people pay at least 45% of their monthly income on rent/mortgage and that percentage is only likely to grow up

any one of this opinion ?

css_jay99

[Bluebird]

you are right about buy-2-let, however your return / pension is based on the assumption that somebody actually wants to rent your property.

the other thing to consider is that even if you buy a new property now in 20 -25 years you will still have to pay money to maintain it and keep it upto health & safety standards - I know there are companies that can do this for you but it all erodes into your 'income'.

[chicane]

Afterall most (Normal) people pay at least 45% of their monthly income on rent/mortgage

Have you thought about moving out of your 5 bed detached in Chelsea to somewhere more affordable?