Pensions!

I understand this is a massive can of worms. But I think the time has come to stop being a dick.

I'm 26, and I have no pension. I've never paid into one in my life. I've been employed by my company for 7 years and I am aware they do offer a pension scheme. I wasn't intending to stay here this long and one thing lead to another etc.

Now I'm in a position (wife, 2 littlun's mortgage and a two motors etc) that taking a £200 pay cut a month would cripple me.

I will be the first to admit I know nothing of pensions, I know my old man went ape shit when they stopped his final salary pension 3 years from his retirement date.

Anyhow - Can anyone offer any simple advice about them? I know I need to start paying something, but I don't know what.

It is wrong of me, to know, however morbid it may be that I'll come into some money via inheritance? (With existing property and being the only child, We know the house alone is worth £400,000. And use this as some kind of investment through shares and savings that'd prove more beneficial than a pension from scratch?

if i was starting life again, i would not go into a pension, my one is like your dad's been in 35 yrs in last few years they have changed is and that, now its the final salary bit they are changing.
so what i was hopeing would be a great pension is slowly looking just a good one
if i was starting again and i've told my kids who are just getting of age to start going to work, i would buy houses, and rent them out, i know its hard to get the first one, but how i would go

I have taken this route, couple if houses rented out aiming for a couple more, live in the rents when mortgages are paid. 34 now decided a while back pensions not worth it after seeing parents pensions reduced to virtually nothing compared to the investments they had made.....

I know a few who've taken this route, for me who has no DIY skills, and with mounting regulations it seems an ever increasing risky investment. Even a small profit over every year, would be more than I'd ever get in a pension.

Working out these maths.

If I retire at 70, and start a pension now at 26 that's 44 years.

44 years = 528 months.

£150 a month matched by an employer £300 = £158,000. Even If I live till I'm 80 that's only £15,000 a year!

Crazy shit.

BigBrand im in the same position as you, apart from the 2 littleun's....

Dont think ill bother with a pension... im just beginning to put 10% of my wage by every month

I have a final salary pension ( doing know how long it'll stay that way) i have paid in 10 years so far. I would also get about 400k if my parents die, but I expect them to last past my retirement, and feel it wrong to rely on their inheritance. I want to be self sufficient and to enjoy my twilight years.

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I a company does a matched contribution scheme (like my last one) then it is free money that you should take advantage of.
However my new company does not... So unless they pull something out of the hat I am seriously considering pulling it all out and putting into savings/ISA's

Currently not worth shit at the end of the term :(

An employer matched contribution of £150 a month would give you a tax free lump sum of £82k and an annual pension of around 12.5k assuming 7% growth at todays rates.

Imo pensions have a place in financial planning but are far from the be all and end all as you never get your hands on the final pot, they are tax efficient on the way in though and if you can get a matched contribution from your employer then will probably be worthwhile. Without that then it's a personal preference - isa's or other outside investments at least mean you get to retain your capital but you don't get the initial tax relief on the contributions.

Don't forget you need your name on the house deeds otherwise you are likely to pay inheritance tax or worse still, god forbid if your parents needed to go into car the government will make you sell the house to pay for your parents care.


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What happens to money you pay into your pension, and say you die 4 months after retiring? Is the money lost or can it be claimed subject to tax by the executors of the will.

think your relatives get a small amout back, but the pension company keep the rest,

Bit of a joke that, don't even get the money back you've put into it?

What kinds of shite investment is that?

You might like to have a read of this artilce about pension reforms.

http://www.thisismoney.co.uk/money/p...on-reform.html

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Originally Posted by BigBrand

Bit of a joke that, don't even get the money back you've put into it?

What kinds of shite investment is that?

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Your next of kin get an amount from it. My Nan got an amount of my grandad's pension, and it has well been worth it. She has taken out more than he paid in, but they probably didn't expect her to live as long as she has, she is 92 now.