Reply to: Pensions vs standard saving accounts.

[IR35 Avoider]

Because I've always thought all pensions are annuities. Thus you may save 20 years but then you can't be certain how long you are going to live , thus you might have saved more than you will be able to enjoy.

You've half-understood the issue, but come to the conclusion that's the opposite of the truth. If you don't have an annuity, then you either run out of money before you die, or waste (leave unspent) money by dying before you can spend it. An annuity ensures (in a probablistic sense) that you spend your last pound on the day you die.

For the usual annuity skeptics: I've just finished reading a very interesting article which explains how investing money in volatile assets (shares) to fund regular income needs leads to three different kinds of waste.

http://www.stanford.edu/~wfsharpe/retecon/4percent.pdf

[DimPrawn]

That's true but , I don't plan living in my 80ies with 2 bags of peanuts per week.

I'd rather have the option to spend it at once , live few years like a GOD ( yachting with women ) and then

Two bags of peanuts!!!

That must be a final salary pension then.

[Likely]

Yes, but equally you might enjoy more than you've saved...??

That's true but , I don't plan living in my 80ies with 2 bags of peanuts per week.

I'd rather have the option to spend it at once , live few years like a GOD ( yachting with women ) and then

[Churchill]

Yes, but equally you might enjoy more than you've saved...??

That's the gamble!!!!

Roll-up Roll-up!!! You pays yer money, you takes your chance!
(And the city wide-boys make a crust either way!)

[MrRobin]

Because I've always thought all pensions are annuities. Thus you may save 20 years but then you can't be certain how long you are going to live , thus you might have saved more than you will be able to enjoy.

Yes, but equally you might enjoy more than you've saved...??

[Churchill]

It will be called Luvly.

It'd be a ******* retard!

[Likely]

Can you imagine what would happen if "Likely" and "Lucy" bred?



Would their offspring be called "Loosely"?

It will be called Luvly.

[Likely]

You don't know squat about them but you "think" they're for losers? What makes you feel that?

Because I've always thought all pensions are annuities. Thus you may save 20 years but then you can't be certain how long you are going to live , thus you might have saved more than you will be able to enjoy.

[Churchill]

Can you imagine what would happen if "Likely" and "Lucy" bred?



Would their offspring be called "Loosely"?

[MrRobin]

Please don't feed the troll!

[expat]

If you can get it one day as a lump sum without paying taxes, then pensions are suddenly attractive option for saving long-term. I've always thought pensions are for losers..

You don't know squat about them but you "think" they're for losers? What makes you feel that?

[Likely]

Oh FFS.

Yes of course you can. You can spend it all on Drugs and Whores, then go cap in hand to the government to support you for the rest of your life.

Whaddya think?

If you can get it one day as a lump sum without paying taxes, then pensions are suddenly attractive option for saving long-term. I've always thought pensions are for losers..

[Churchill]

OK , after age of 55 , or whenever u retire , can you withdraw all accumulated pension in one time as a lump sum ? I.E Get it all having saved taxes but accumulated interest ?

Oh FFS.

Yes of course you can. You can spend it all on Drugs and Whores, then go cap in hand to the government to support you for the rest of your life.

Whaddya think?

[Likely]

OK , after age of 55 , or whenever u retire , can you withdraw all accumulated pension in one time as a lump sum ? I.E Get it all having saved taxes but accumulated interest ?

[El_Diablo]

£25M and change.

One careful owner...

Never raced or rallied.

I'll think about it.