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I had a workmate who was single, lived with parents, had a good relationship with them, (pampered) and his hobby was saving money...he didnt smoke, but liked a drink,... the rest went in the bank..EVERY week...over a very long period of time,(20+years) hed saved over 130,000..and for whatever reason, put almost the lot in icelandic banks...hes got very little left now..and, im told, has gone round the bend...its all about lasting the distance with money ..leave it to your wife and the new bloke will be very thankful that you were a hard worker...leave it to your kids and will be rinsing a steel trough in a nightclub...leave it in an isa and the government will decide what to do with it...leave it in a pension an its
Fu..ked..no pockets in shrouds...
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50 year olds retirement age is about 67
40 year olds is about 68
30 year olds is 69 and in your twenties it's 70
If you want to control your own retirement age then put money away for the future - if you want the Government to own your future then piss it up against the wall - good luck!
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Got a small pension from the Army
Got a chrystalised pension pot (spelling of about 80k Took 20 out 1/4 when I was 56
opted out of serps years ago when it first came about (so don't know where I stand with that)
Then there will be old age pension.(Thats changing)
?220 Month goes in company pension scheme.
Will they all pay out automatically?
I keep putting things off because paperwork is my worst nightmare.(Though I am good at being a smart ass)
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spot of research/reading on the following site below - view external link
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Galant. Sorry mate but from a tax perspective pensions are more efficient than ISAs even for a BRT. Although that doesn't necessarily mean better. An example would be a BRT who has saved 100k in a pension and 100k in an ISA. Forget investment performance for this; the amount the person has actually paid into the ISA is 100k while they have actually paid only 80k into the pension, the other 20k is tax relief on payment into the pension.
At retirement of 65 and assuming the person's only other income is state pension of let's say 7k per year, they would take 25% of the pension pot as a tax free lump sum while the remainder would provide an income. If this is less than 3.5k per year then no tax would be paid on it due to age allowance. So from a tax perspective only and using a very basic and generalised example, you are 20k better off with the
pension. The major issue for me is the lack of flexibility with a pension compared to an ISA and also what happens to your capital on deat
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For those on reasonable incomes,it should not be a question of either or but you should aim at having a variety of long term savings pots which should include pensions and ISAs.
The big advantage of pensions as explained is their tax status so a minimum of an extra 20 per cent free money is being invested on top of an employers free contribution.
The pension should be actively managed and reviewed annually with a view to increasing contributions when possible.
It's extremely important with a private pension to take out the risk in the last few years and not expose the pension to the risk of the stock market.
For those like myself with a public sector pension then count your blessings and make sure that you never ever ever opt out.
Im in the fortunate position to have a generous NHS pension to come which is not subject to investment risks and I've been in a position to have a variety of savings pots.
Back to crash...it seems that you have made the classic mistake of putting your h
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Crash,
Kempo is right, although it appears that the decision you are considering is what to do with your pension pots as opposed making further contributions?
Definitely don't make that decision (or other pension decisions) without advice. An annuity purchase is final and once in it, you can't get out of it (in most cases).
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