O/T Pensions, I am lost

[crashbang]

Anyone in this field, I am not bothered about putting figures up, but what I save and what I get back seems pathetic.

[shiregreenmillers]

Anyone in this field, I am not bothered about putting figures up, but what I save and what I get back seems pathetic.

What are you bothered for crash with all the property you got..How much do you get a month ...

[rich76]

It will sound like a cliche but each individual's circumstances are different. Primary considerations are taxpayer status and age for me. The amount you want to stick in a pension is a consideration too; don't put 50 a month in and think you will get tens of thousands per year in retirement.

Sticking my neck out, and especially for basic rate taxpayers, I prefer ISAs to pensions. They are not as tax efficient but you have full control over your money and it isn't drip fed back to you in retirement.

Having said all that, if you are offered an employment scheme to which your company will contribute, do it. It's free money.

If you want a chat about it, drop me your email.

[Heman]

My experience of pensions is that they are a bit like a lottery. My father in law lost the will to go to work soon after his car was washed away in the 2007 floods so he retired. He got a good pension - 3 in fact. If he had stayed on for 1 more year he would have hit the financial meltdown in 2008. He would still be working now as his pensions would not have recovered yet.

Put it in property is my opinion.

[Galant]

Rich - ISAs are just as tax efficient for 20% tax payers in most circumstances and you have instant access if an emergency occurs.
40% tax payers are better off with pensions.
Another main advantage of company schemes is that the company usually contributes as well as you and often more than you i.e. free cash.
If you are over 40 and don't earn a lot - forget it it's too late - live it up whilst you can.
Under 40 put as much into ISAs and pensions as you can without making your life a living misery - that's my advice.
Started my first pension at 19 and started taking it in my early 50's - glad I paid in - can't wait for 55 to get my next pension - meanwhile the ISAs are racking up interest and the property portfolio is increasing in value again - lovely jubly!!

[shiregreenmillers]

Galant i have got ten grand in premium bonds i won £500 pounds on them last year ..Would it be better to put the money into something else..

[Galant]

You had a good year there shiregreen - 5% return and tax free and safe as the government - well done.
However the typical payout on premium bonds is 1.3% and on average you would only expect to win £130 from £10,000 invested. This equates to 1.625% before tax.
I would suggest that (if you are prepared to tie up your money you can get up to 3.5% tax free in a cash ISA - you could put £5,000 in before the end of March and another £5,000 in April (the new tax year). You may have to tie it up for 3 to 5 years to get this but it will be beating inflation - a good idea if you don't need the money in the near term.
When I sort out my next ISA will try to remember to post my choice on here and you can decide what you want to do.
Google search - best ISA rates will get you started or Saturday's Daily telegraph has tables in it.

[shiregreenmillers]

You had a good year there shiregreen - 5% return and tax free and safe as the government - well done.
However the typical payout on premium bonds is 1.3% and on average you would only expect to win £130 from £10,000 invested. This equates to 1.625% before tax.
I would suggest that (if you are prepared to tie up your money you can get up to 3.5% tax free in a cash ISA - you could put £5,000 in before the end of March and another £5,000 in April (the new tax year). You may have to tie it up for 3 to 5 years to get this but it will be beating inflation - a good idea if you don't need the money in the near term.
When I sort out my next ISA will try to remember to post my choice on here and you can decide what you want to do.
Google search - best ISA rates will get you started or Saturday's Daily telegraph has tables in it.

Thanks for that..

[clarkey1974]

You had a good year there shiregreen - 5% return and tax free and safe as the government - well done.
However the typical payout on premium bonds is 1.3% and on average you would only expect to win £130 from £10,000 invested. This equates to 1.625% before tax.
I would suggest that (if you are prepared to tie up your money you can get up to 3.5% tax free in a cash ISA - you could put £5,000 in before the end of March and another £5,000 in April (the new tax year). You may have to tie it up for 3 to 5 years to get this but it will be beating inflation - a good idea if you don't need the money in the near term.
When I sort out my next ISA will try to remember to post my choice on here and you can decide what you want to do.
Google search - best ISA rates will get you started or Saturday's Daily telegraph has tables in it.

Thanks for that..[/quote]



Although there are limits on ISA

[HotshotBobbyW]

Stuff pensions this lot expect you to pay more for longer and get less back in order to balance their books , well stuff them i'm out of any pension and will enjoy 'my' money now, the state can deal with me when i'm ready .