Saving for pension - any regrets?

[_V_]

I would have probably invested the money in Yahoo or MySpace shares.

Invest the money in low cost global equity and bond trackers and then just let it all grow until you have enough money, that even after taking a living it grows so fast that when you die it's still over £1m there in each of your pensions.

[Guy Incognito]

Government pretends they are giving you tax relief, while secretly hoping your money grows so they can charge you more tax than you would have paid in the first place.

This is certainly not the case. The nature of democratic government is short-termism.

[Guy Incognito]

No, but there is really no excuse why people like IT contractors are not saving the maximum possible over the next 10 or 20 years.

I invested heavily so that I and my wife am retired this July aged 55.

I was earning bundles in the 2000s. Spent the lot and hit thirty with no house, no pension and no cash after taking 15 months off travelling.

Having said that I would hate to retire as young as 55.

[hobnob]

but only if you had a scheme already open in the year(s) you're catching up on

You're right, which implies that it's worth encouraging people to start a pension fund early, even if there's barely anything in it; that way, they'll have the option of using the allowance later.

[_V_]

[SueEllen]

I was earning bundles in the 2000s. Spent the lot and hit thirty with no house, no pension and no cash after taking 15 months off travelling.

Having said that I would hate to retire as young as 55.

You are only in your 20s once....

[Michail]

What do you all think of using NEST an making one off payments there?

[eek]

What do you all think of using NEST an making one off payments there?

Very expensive for that approach given that there are other far cheaper options.

[lukemg]

Below is 20 years of investing into a global mix of stocks, bonds, REITS etc, assuming a very conservative 7% pa tax free increase in these assets in a SIPP.


£1.7m, well over the limit. Just investing in the S&P 500 tracker would return over 10% for last 30 years as an average.


10.72%
Average Market Return for the Last 30 Years
Looking at the S&P 500 for the years 1991 to 2020, the average stock market return for the last 30 years is 10.72% (8.29% when adjusted for inflation).

Could not agree more, I always thought it's a great way to get money out of the business and for inside gigs it's an absolute no-brainer to reduce tax by maximising pension contribution (For me anyway).
Alongside SIPP (mostly global tracker ETF's e.g. VWRL) I have ISA's in similar state. Advantage is they can be used tax free to subsidise move to part time (summer's off anyone ?) without triggering drawdown on the SIPP, which is left to compound.

I cannot describe the feeling of not needing to work, say goodbye to any job/bellend who pushes your buttons just too hard, jobs I have dug deep and sucked up/lived away from home are a distant memory.

Time to pack in is when you've got enough and you've had enough, just hope the first one happens earlier than the second....
We all know the old guy dragging himself in for one more day with nothing in the tank cos of bad luck, decisions, divorce, whatever.

[Lockhouse]

Those of you folks that are locking away funds in pension, ever regretted it ? I mean not being able to access that money and all associated opportunity cost (like property perhaps)?
curious of you guys and gals approach to retirement

I've not read the thread but based on my own personal experience of pensions, having just retired, I've learnt;

Generally pensions are a good thing and the tax concessions make it very worthwhile.
You have loads of options when coming to take the money - only the badly advised will pay full tax here, simply because you don't have to.
It's never too late or too early to start.
An IFA may seem expensive but in my case it's been well worth it to protect me from myself.