Do you have a pension fund?

[David]

As the thread title suggests, feel free to discuss how important you consider your pension fund to be, and how much you're paying into it. Are you paying a lot into it every month in the hope that you have enough money to go on that rock climbing holiday you've always wanted to go on when you retire and have time?

 

Hoping to have enough to finally buy that Ferrari or speedboat you always wanted?

 

How important is your pension to you?

[air_raid]

I save for my retirement.

 

I have a work pension but an FPM scared me shitless when I was starting out by pointing out that if your work pension pays out half my final year salary, factoring in inflation something-or-another, blah blah blah etc, and assuming whatever I stick my lump sum/savings into pays out at 5% p/a, and I was going to retire in 43 years (at the time) then I'd need my pot to be about

[kev2050]

Nope. I can only just afford my mortgage. I'll worry about the future when it gets here.

[Bus Surfer]

I have a compulsory works pension with the Civil Service. With full service it should pay something like

[Happ Hazzard]

Yes. In cash. Anyone that pays money into a pension fund is deluded IMO.

[A-DUB]

As a student pensions actuary and former IFA who did a lot of pensions work I'd be a bit hypocritical not to. But yes, it's a DC scheme I put in 2% of salary, company puts in 6% which is ok.

 

Unfortunately the idiotic view expressed above is quite typical of people who don't know anything about the subject, which is going to result in the same group being worse off financially due to pure ignorance.

[seph]

On another note any of us below the age of 35 and paying full National Insurance each month can kiss our state pension goodbye!

 

*Raises hand*

 

We'll effectively be paying for somebody else's pension, as the gov't sees fit that you deserve at least

[gary v1]

I save for my retirement.

 

I have a work pension but an FPM scared me shitless when I was starting out by pointing out that if your work pension pays out half my final year salary, factoring in inflation something-or-another, blah blah blah etc, and assuming whatever I stick my lump sum/savings into pays out at 5% p/a, and I was going to retire in 43 years (at the time) then I'd need my pot to be about

[JNLister]

When I turn 65, it will be 97 and 94 years respectively since my parents were born. My pension plan is that they will be dead at this point and we'll be renting their house out.

 

My back up plan is that by this point there'll be so many old people, we'll be able to hold the government to ransom over the state pension.

 

My back up back up plan is that after decades of working 3-4 hours a day in non-manual labor, I'll be fit to carry on doing so after my "retirement age."

 

My back up back up plan is the money I've accrued in a previous employee pension scheme, currently predicted to be worth

[Guest]

I pay 5% and my company pay 8. Have 5 years final salary pension from previous employers too. Health permitting hope o be one of the oldies working in b&q etc when I hit 60ish few days a week

[patiirc]

My plan was to do it outside of a pension plan, as where I first started working full time the Pension the company had was shit, plus it was tied in so couldnt get at it if needed for an emergency had to wait until 50 plus and couldnt be transferred upon being made redundant So was dead money to boot

 

So mapped out sorting an ISA and putting in the Maximum in each year, then spreading some stuff around into Bonds and other long term saving plans and so on and possibly Buy to Let when reached the requisite level. So the money was always doing something and didnt have all my eggs in one basket, Whilst saving as much as I could in the interim

 

Unfortunately things got slightly buggered. Unless I get back to work then its not going to happen. So will be whatever I can eke out between now and supposed retirement age. Nevermind

[Jimmy_kahoona]

50% of the male population will be dead by the time they reach 65 years old

 

80% are dead by the time they reach 70

 

Odds on I will be in there somewhere so I`ll enjoy the money now and if by some medical miracle I make it past 70 the government can pay for me (makes up for the National insurance contributions I`ve been making for the 50 years of working)

[LaGoosh]

Being a crown servant I am poorly paid but atleast have a nice pension waiting for me.

[denzel_maggiore]

50% of the male population will be dead by the time they reach 65 years old

 

80% are dead by the time they reach 70

 

Odds on I will be in there somewhere so I`ll enjoy the money now and if by some medical miracle I make it past 70 the government can pay for me (makes up for the National insurance contributions I`ve been making for the 50 years of working)

 

Is this true?

 

Interesting stat if it is.

[Loki]

That stat is about 85% bollocks.

 

Everyone should have a private pension - if you think you can get by as a pensioner on the state pension you're in for a long, cold twilight. And Happ's idea of just putting cash aside is missing out on the tax rebate you get on pensions savings. Also, the whole concept of a pension is that it pays out for the rest of your life, so if you live to 120 it'll pay out each year in line with inflation. If you put money aside and live another 40 years after retirement, it's going to run out at some point.

 

I understand the mistrust of pension schemes though, given some of the collapses of recent years. The best thing to do, IMO, is pay into a low-risk pension scheme, especially if your employer will match your payments as that makes a huge difference. Then at retirement, take all that money back out and buy a government-backed and inflation-linked annuity so you know exactly what you're going to get for the rest of your life.