How much do you save in your pension each month?

[AlfredJPruffock]

Given the apparent chronic shortage of people particpating in Private Pension schemes - I dont think there will be enough funds to run Pension companies in 10-20 years time.

[expat]

So 75% of the pot cannot be withdrawn.

You do have to buy an annuity by age 75.

And when you buy the annuity, your pot will be gone, overwise what's the point?

Yes, and think of the fantastic annuity rate you will get.

Infact.

Live like a pauper all your life to pay your pension.

1. 25% tax-free at age 55.

2. Permitted withdrawal is about 12% of currently-available annuity. For a man aged 55, annuity is just over 6k per 100k pot, so allowed withdrawal amount 7.2k/year. You will have it all out before 75.

Therefore the annuity restriction is a straw man.

[MrNoMotivation]

1. 25% tax-free at age 55.

2. Permitted withdrawal is about 12% of currently-available annuity. For a man aged 55, annuity is just over 6k per 100k pot, so allowed withdrawal amount 7.2k/year. You will have it all out before 75.

Therefore the annuity restriction is a straw man.

if you live to 75

[Foxy Moron]

The basic fact is, pensions were worth investing in, but now it's a big gamble. Add to that your assets are not very liquid and the ascociated opportunity cost it seems a poor deal.

What you can or can't withdraw is a moot point.

[Dark Black]

not a penny

[PM-Junkie]

In this day and age, anyone who saves their own money into a pension fund deserves what they get. It brings a whole new dimension to that saying "a fool and his money are soon parted".

[BrilloPad]

Do you have a pension and if so how much do you save each month?

I have one : when I was married I could afford to contribute. Now I cant afford anything.

[moorfield]

WRONG!

+1

In theory it could be possible to extract circa £170k from a SIPP tax free over 20 years using the 25% and under the income tax bands. But of course that only gives you a small income in each year and you will be taxed on other income.

[Foxy Moron]

So in summary, about as much maneuverability as an Elephant in a lift?

[Fred Bloggs]

1. 25% tax-free at age 55.

2. Permitted withdrawal is about 12% of currently-available annuity. For a man aged 55, annuity is just over 6k per 100k pot, so allowed withdrawal amount 7.2k/year. You will have it all out before 75.

Therefore the annuity restriction is a straw man.

Yes, that's right.

Ever heard of an alternatively secured pension? It isn't compulsory to take an annuity at 75.

Seldom have I seen so much ill-informed sh*te in one thread, even here. I put £1k a month into a SIPP.