Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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quote:
Originally posted by J da Silva
quote:
Originally posted by Cosmo
quote:
Originally posted by Robbo
Dont forget the effects of inheritance tax peoples 
Ways round that too 
Invest in properties. 
Still get taxed on that.
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Robbo
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Registered: 6th Aug 02
Location: London
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exactly, iht just becomes cgt
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VegasPhil
Premium Member
Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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I'm thinking of opting out of mine and taking my money back.
Loads of older people I know have been fucked over with their pensions.
Corsa 2.0 16v Vegas - Sold
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Hammer
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Registered: 11th Feb 04
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Going forward i'd say being more creative with the way you invest would be your best bet. As with anything though big gains carries big risk so it's not a uniform formula to get the most out your money, no one has a right and wrong answer really.
I'll die young though so i'm not really giving a shit about pensions and planning
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AK
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Registered: 5th Jul 00
Location: Aberdeen City
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took on out at 23 i think
(had one prior to that though)
one from 23 till 26 - paid in about 6%, company matched it - so around 16k.
current one (which includes previous one)... company pays 200 a month, i pay whatever... currently 200.
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Kerry
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Registered: 5th Oct 01
Location: Norwich
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I have a final salary pension what ever that means
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Dean_W
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Registered: 13th Dec 05
Location: Downham Market, Norfolk
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Example....if you pay in £100 a month into a pension do you get £100 a month back?
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Robbo
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Registered: 6th Aug 02
Location: London
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No, because it should grow as the pension company invests it on your behalf.
Kerry - final salary pension schemes are fairly self-explanatory... if you stayed at the comopany until your retuirement, then you would receive a pension every year equivalent to your final salary... in reality you wouldnt cos ud take some lump sum tax free and a reduced annual pension but still
The bad news is no-one generally allows entry into a final salary scheme anymore and those in them alreayd will be migrated to defined contribution schemes as time passes (Put £100 in, watch it grow, get that back) as no-one can sustain final salary schemes anymore... hence protests you hear about pensions (ie royal mail)
[Edited on 12-08-2008 by Robbo]
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Robbo
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Registered: 6th Aug 02
Location: London
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Also, dying before returement age DOES NOT mean you lose your pension, it goes to your defined beneficiary
The only thing you lose (besides your life lol) by dyign prior to reaching retirement age is the amount you paid in NI 
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
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Yeah, Robbo, I was thinking that. My Grandad dies and she get his BA pension (its omgz big).
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Robbo
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Registered: 6th Aug 02
Location: London
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Yesh, no-one should lose their pension through passing away (although IIRC there are certain tiems when this could technically happen) but as said, NI contributions (so your state pension) do disappear... although IIRC your spouse gets something in return
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Conway563
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Registered: 7th Jun 06
Location: Yate, Bristol
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I started paying in to one when I started my new job in may. Only pay 2% which the company matches but can't afford more than that at the moment.
By paying in to it though I actually take more home a month than if I didn't have one.
Also set it up so that if I die it all goes to my daughter when she's 18
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Robbo
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Registered: 6th Aug 02
Location: London
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Anythign you can afford is better than nothing at all, if only to get the tax break and take advantage fo the free money that comes form the employer 
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Twiggy
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Registered: 15th Oct 04
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I have been paying in since 19 ish at one point i was paying in 15% when single and no comitments (my employer also put in 15%!!) now i put in 6% and employer 9% i am now 24
[Edited on 12-08-2008 by Twiggy]
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stubbsy05
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Registered: 23rd Oct 02
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Started at 17 with the following:
6% of my salary matched by employer.
Moved companies at age 21 and now been here for 2 years on following:
4% of my salary and company pays 12% 
[Edited on 13-08-2008 by Alex.S]
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Fee
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Registered: 16th Nov 05
Location: With AK
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I can't remember the exact rules...or what they relate to
But if you die before you start taking your penion your beneficiaries will get a pay out.
If you die after you retire and have started taking your pension, they dont
There are ways around IHT....so many exemptions
It just depends who you want to leave your stuff to and how well prepared you are
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Kerry
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Registered: 5th Oct 01
Location: Norwich
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quote:
Originally posted by Robbo
The bad news is no-one generally allows entry into a final salary scheme anymore and those in them alreayd will be migrated to defined contribution schemes
yes final salary pension is no longer available with RBS and the people that were already on it got offered a payrise to come out of it and onto the new scheme. I however stuck with it so I will get final salary pension when I retire (still dont know what it means )
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Robbo
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Registered: 6th Aug 02
Location: London
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Well you won't, a) you won't be there when you retire and b) they will forceably migrate you in the 30 years before you retire m'dear 
As I said, a final salary scheme is as it says on the tin... your annual pension is the same as your final salary Or, usually less because you take some of it as a lump sum tax free upon retirement... as said though, these are drying up and people are being offered incentives to leave them... but in the comign years people will be forced off them as the companies literally cannot afford to pay them
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Kerry
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Registered: 5th Oct 01
Location: Norwich
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im pretty sure mines gaurenteed!!
they already did the migration process when they stopped the scheme and i fully intend on staying with the company long term unless something major changes in my life 
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neoquip
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Registered: 12th Aug 02
Location: Nottm
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started my private pension back in 1992 when i was 18.
£30 a month.
two years on in 1994 the pension company told me if i want to keep on top of inflation i should be now putting £120 a month in!!!! (thats in 1994!!)
so i just increased it to £50 a month and decided not to put any silly money into it.
now in 2008 I had the valuation predictions what the pension will be worth when I'm 65 (in 2039) at the curren rate i'll have a lump sum of £39k and a yeary pension of £3400.
now ask yourself if a private pension is worth it?
I'm now planning of stopping any more payment into the private pension and instead I'll put the £50 a month in an ISA.
As i can access the funds in the ISA when ever I want. The money in the pension can't be touched.
IMO Unless you have a company final sallary pension with say.. BOOTS, NHS, the Council, I don't see a private pension working unless your sticking £800 a month away for somethinng you might live only one year into seeing.
with pensions, the total amount you put away over the period of time you've had it will be the amount you get back as a lump sum.
So you might as well look at other savings plans like an ISA.
Or... Property!
as I have.
just my thoughts btw.
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Tim
Site Administrator
Registered: 21st Apr 00
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Funnily enough (as I'm a soon-to-be Dad) I saw an interesting article the other day. Shows you really should start your pension earlier rather than later, which I'm glad I have...
If I pay £1200 a year in to a CTF for 18 years, and top this up with £3000 gifts in to a unit trust, then assuming 6% growth a year they'd have about £500k by their 18th birthday. Stick that in the bank for the next 42 years and again with 6% growth would become about £5.7m at 60 (although inflation would mean that's not as amazing as it sounds).
Plus you can also apparently start a pension for your kids from birth (£3600 a year including tax relief), so you could easily make them a millionaire in their 30s
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bishbosh
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Registered: 25th Sep 06
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What do you mean "£3000 Gifts"?
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Tim
Site Administrator
Registered: 21st Apr 00
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Just that... a gift.
I believe you can give up to £3000 a year completely exempt from capitals gains/inheritance tax.
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Robbo
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Registered: 6th Aug 02
Location: London
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Yes Tim is correct, you can gift each child £3k per year exempt from IHT (Cash is always exempt from CGT)
Thats from both parents btw
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Tim
Site Administrator
Registered: 21st Apr 00
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So sounds like a great way to sort your kids pension before they even hit adulthood...
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