State pension - fiendishly complex

[bobhope]

I missed some NI contributions a few years ago and HMRC wrote to me, giving me the opportunity to make voluntary contributions. So, I'm trying to work out whether it's worth it or not, using NPV of expected annuity rates in 30 years time, etc.

That's not the tricky part: it's trying to fathom out what on earth the state pension rules currently are, will be next year and are likely to be in a decade's time.

[FSM with Cheddar]

I don't trust the state pension, and would definitely not put any more money in than I have to.

[Ruprect]

are likely to be in a decade's time.

You won't have one. That will be the rule.

[moorfield]

I don't trust the state pension, and would definitely not put any more money in than I have to.

+1

Wouldn't touch our soon-to-be-bankrupt state with a bargepole, I'm working on the assumption there won't be a state pension for me when I'm retired. Put it in a shares ISA instead.

[PM-Junkie]

The best pension policy IMHO is to build up a company that generates revenue beyond what you physically do for it (ie not just a one-person consultancy), and that can be sold when you wish to pack up work for enough funds to keep you going until you expire.

Relying on a pension, be it state or private, is a hoooooj gamble.

IMHO.

[Pickle2]

+1
Put it in a shares ISA instead.

Yep, cant go wrong there.

[expat]

The best pension policy IMHO is to build up a company that generates revenue beyond what you physically do for it (ie not just a one-person consultancy), and that can be sold when you wish to pack up work for enough funds to keep you going until you expire.

Relying on a pension, be it state or private, is a hoooooj gamble.

IMHO.

Frankly I think that relying on my ability to build a business would be just about the biggest gamble that I could imagine. I have neither ideas nor talent in that direction. Nor application nor inclination.

As far as I can see, paying past NICs is a really cheap bet, and on current figures once you draw a pension for 2 years you are ahead on what you've paid.

[AlfredJPruffock]

Never - Ever subscirbe to any Financial prodcut which you dont understand because of its 'complexitiy'.

It is quite likely that future Governments may well change state pension entitlement to another set of crtierion altogether - perhaps even abolishing the pension system so that we 'work till we drop' or for those not able bodied - given a lethal injection - so I would not pay any more contributions as you may well get nothing in return.

[stingman123]

You're better off taking the money you are thinking of sinking into the State Pension and investing into Bonds instead. My tuppence worth....

[DimPrawn]

http://www.moneyweek.com/personal-fi...ale-14676.aspx

For sale: a £35,000 pension in return for a £421 investment. Deal ends 6 April.



Gordon is giving everyone a pension worth £35K for £421.