Reply to: State pension - fiendishly complex

[stingman123]

I absolutely promise that I will never pinch your pension pot.

God can make me blind in one eye if I do.

Cheers,

Gordo.

I Hope he decides to blind your snake eye

[Cyberman]

The state pension is currently about 360 quid a month for a single person and you need 30 qualifying years after 2010 whereas prior to that it was based pro-rata on a full qualifying period of 44 years for a man and 39 for a woman.

I checked my entitlement on the government website a month ago and will fully qualify at 65 as I already have paid 30 years NI contributions....just.

I received a letter 5 years ago asking me if I wanted to make up missed years and had to make a decision and pay it by this year. As I already have paid 30 years I would have to be pretty stupid to pay the extra. Those that do not think they will pay 30 years should really consider making up the payments as the state pension is tremendous value in comparison to other pension schemes and would cost many tens of thousands of pounds of contributions if it was a private pension. It's a no-brainer !!

[BrilloPad]

I absolutely promise that I will never pinch your pension pot.

God can make me blind in one eye if I do.

Cheers,

Gordo.

I hope he decides to blind your good eye.......

[Gordon Brown]

I absolutely promise that I will never pinch your pension pot.

God can make me blind in one eye if I do.

Cheers,

Gordo.

[expat]

Hohoho. I thought you were an investment Guru?

I've read the small print. For married couples with kids AND assuming the rules don't change yet again, it's not worth it.

To be fair, on the face of it, it looks like a good deal, but underneath (at least for my situation) not.

So for a single person, worth only say £16000? Say dramatically pessimistic odds of 9 out of 10 that the rules change to eliminate it completely, so it's worth 1/10 = £1600. Cost £421. Still a good deal.

[bobhope]

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.

Hohoho. I thought you were an investment Guru?

I've read the small print. For married couples with kids AND assuming the rules don't change yet again, it's not worth it.

To be fair, on the face of it, it looks like a good deal, but underneath (at least for my situation) not.

[AlfredJPruffock]

Interesting read that DP.

...extract follows ...

And is there any point in topping up your state pension?

There also may be no point in topping up the state pension.

If you are facing a low income retirement you may be eligible for Pension Credit.

This is an extra pension allowance created to make sure no pensioner receives less than £124.05 a week total income.

So if you are unlikely to have any source of income other than the state when you retire, there's no point spending your money now on NI top ups. To find out more, visit the Pension Service website.

[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.

[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....

[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.

[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.

[Pickle2]

+1
Put it in a shares ISA instead.

Yep, cant go wrong there.

[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.

[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.

[Ruprect]

are likely to be in a decade's time.

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