Have you got a pension?

[SimonMac]

Mods could you add a new option to the poll "I don't need one because I'm pretending to be wealthy"?

POTD

[Jeff Maginty]

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[minestrone]

My personal view is the pension I have will top up my income to about 10 -> 15 grand a year post retirement depending on my time of cashing it in. I could quite happily live off that, I have no great outgoings or no expensive hobbies.

I will go into retirement with 30 years full ISA savings and property but I want that regular top up beyond the state pension.

There are no hard and fast rules and you have to tailor you investments to the way you want to live in later life but that is my plan. I don't want to retire with a lump sum and then see it go down year after year and don't want to be in some BTL system when I am in my 60s. I don't think anyone who does that is wrong, you have to play the game they way you want it to be played.

[formant]

Gents (& ladies if any are reading),

I've seen a lot of people slagging off pensions, saying that they're a rip off due to high charges and low performance etc. Also the fact that goverments keep moving the goalposts by changing the rules every few years doesn't help.

The usual advice seems to be "Get a buy-to-let property". I know that's been a fantastic investment for many people over the last 10 years. However, considering that banks are tightening their lending criteria and people are already squeezed just on everyday living expenses, I can't see where the money is going to come from for another house-price boom any time soon. Also, renting out a property is a hassle and risky (especially since I would need a mortgage to buy the place). I really don't fancy investing in property. If you've made a fortune from it, then congrats and may your success continue.

I therefore have a pension. My employer (yes I'm permie scum!) contributes 5 percent (peanuts I know, but better than a kick up the bum), and I contribute 15 percent. The money is invested in a well-diversified spread of global equities on an index-tracking basis, so hopefully I don't have to worry about fund managers stock-picking skills. The annual management charge is less than 0.4 percent, which to me seems like rock-bottom and certainly not "high". What do you think of this? Am I still a fool to invest in this pension despite the diversified nature, potential for equity growth/dividends and very low charges?

Thanks for any comments.

Jeff.

Disclaimer: I'm not a financial expert. What I've said here is my opinion only. If you act on the above you do so entirely at your own risk. I accept no liability. Please don't sue me. Blah, blah, Etc, etc.

I don't think pensions are are all that risky. My preference for buy-to-let is mostly down to the flexibility. If I can, I'd prefer not to have to work till I'm 65, but instead quit when I can easily afford to.
I don't intend to ever take out a mortgage for a property other than the one I live in, though.

[d000hg]

don't want to be in some BTL system when I am in my 60s

WHS. When you retire you want to be able to retire.

[EternalOptimist]

Gents (& ladies if any are reading),

I've seen a lot of people slagging off pensions, saying that they're a rip off due to high charges and low performance etc. Also the fact that goverments keep moving the goalposts by changing the rules every few years doesn't help.

The usual advice seems to be "Get a buy-to-let property". I know that's been a fantastic investment for many people over the last 10 years. However, considering that banks are tightening their lending criteria and people are already squeezed just on everyday living expenses, I can't see where the money is going to come from for another house-price boom any time soon. Also, renting out a property is a hassle and risky (especially since I would need a mortgage to buy the place). I really don't fancy investing in property. If you've made a fortune from it, then congrats and may your success continue.

I therefore have a pension. My employer (yes I'm permie scum!) contributes 5 percent (peanuts I know, but better than a kick up the bum), and I contribute 15 percent. The money is invested in a well-diversified spread of global equities on an index-tracking basis, so hopefully I don't have to worry about fund managers stock-picking skills. The annual management charge is less than 0.4 percent, which to me seems like rock-bottom and certainly not "high". What do you think of this? Am I still a fool to invest in this pension despite the diversified nature, potential for equity growth/dividends and very low charges?

Thanks for any comments.

Jeff.

Disclaimer: I'm not a financial expert. What I've said here is my opinion only. If you act on the above you do so entirely at your own risk. I accept no liability. Please don't sue me. Blah, blah, Etc, etc.

you are not a fool , of course not
but people base their decisions on a raft of information and personal prejudices

I decided a long time ago not to put my savings into a pension. my plan is to live off the interest , which will be less than your pension, but then I will have a large sum to pass on to my kids.

[Jeff Maginty]

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[EternalOptimist]

pensions are tax efficient.
no doubt about it.


If your main goal in life (and death) is to be tax efficient , then go for it. Your kids can put it on your gravestone
'here lies dad, he was tax efficient. But he left us nothing , the bastid'



by my calculations, you will live out your life on £300 per week cf £200 for me (proportion wise)

but I will be able to pass on 350,000

obviously these figures are made up, I have no idea what your pension pot will be

[d000hg]

It'll be a good lesson to your kids that they should get a pension so they can support themselves in old age.

[EternalOptimist]

It'll be a good lesson to your kids that they should become a pension manager so they can get filthy rich and support themselves in old age.