stuartmitchell
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Registered: 24th Apr 04
Location: Kirkliston, Edinburgh
User status: Offline
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quote:
Originally posted by James
quote:
Originally posted by stuartmitchell
quote:
Originally posted by Paul_J
http://www.youtube.com/watch?feature=player_embedded&v=GEAGdwHXfLQ&t=30m22s
Worth watching about 2 mins of this from 30m 22s ...
Pension funds will be so raped by the time you get to pension age it's not worth wasting time on it
Thats my concern but what's the alternative? 
SIPP.
Or at least some kind of pension that gives you a say over what it gets invested in.
Sorry James, I'm a bit of a financial twat. Whats a SIPP?
I pick where my money gets invested just now, I picked 3 seperate funds from Standards Life portfolio.
Cheers
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James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
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quote:
Originally posted by stuartmitchell
quote:
Originally posted by James
quote:
Originally posted by stuartmitchell
quote:
Originally posted by Paul_J
http://www.youtube.com/watch?feature=player_embedded&v=GEAGdwHXfLQ&t=30m22s
Worth watching about 2 mins of this from 30m 22s ...
Pension funds will be so raped by the time you get to pension age it's not worth wasting time on it
Thats my concern but what's the alternative?
SIPP.
Or at least some kind of pension that gives you a say over what it gets invested in.
Sorry James, I'm a bit of a financial twat. Whats a SIPP?
I pick where my money gets invested just now, I picked 3 seperate funds from Standards Life portfolio.
Cheers
Self Invested Personal Pension.
You have full control over what your money is invested in, and any profits are tax free providing the type of asset is included in the list in section one below:
http://en.wikipedia.org/wiki/Self-invested_personal_pension
But it sounds like you already have enough control to try and make sure that the value of your pension investments doesn't end up being rubbish.
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stuartmitchell
Member
Registered: 24th Apr 04
Location: Kirkliston, Edinburgh
User status: Offline
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Cool! Thanks for that mate!
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Paul_J
Member
Registered: 6th Jun 02
Location: London
User status: Offline
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quote:
Originally posted by James
But the problem isn't with pensions, it's with the funds the money is invested in.
A pension is just a tax free wrapper for assets. You'd be stupid not to use one. Most private pensions that you would get through an employer are just invested in funds, that's where they start to lose money.
The first part of this article explains it pretty well:
http://blog.moneysavingexpert.com/2006/05/08/the-one-word-that-caused-the-pension-crisis/
Yeah that's what I mean James.
The problem is with the fund managers of large pension funds, which your every day joe's pension will be invested in.
The american 401k seems closer to a S.I.P.P than your every day UK employer pension which will just get a 3rd party company to provide the service which in turn will be raped by the finance industry.
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tom130691
Premium Member
Registered: 13th Sep 08
Location: Daventry
User status: Offline
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i have about a fiver in johnlewis scheme from previous part time work with them,
currently contracting at jaguar, not even thought about pensions, want to save to get a house first,
unless the opportunity to go permanent comes up then ill probably pay in the max
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Robbo
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Registered: 6th Aug 02
Location: London
User status: Offline
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im interested to know how people who arent paying into pensions and/or are saving for a house think they are goign to pay the bills for said hosue when they get older
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Marc
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Registered: 11th Aug 02
Location: York
User status: Offline
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I keep saying this to my mates who don't have pensions. They don't seem too fussed!
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Robbo
Member
Registered: 6th Aug 02
Location: London
User status: Offline
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pensions are possibly the single most important bill you can pay every month (fully valid excpetion, rental property owners)
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Paul_J
Member
Registered: 6th Jun 02
Location: London
User status: Offline
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Program on Monday 8pm channel 4 all about pensions.
I have no problem with people putting money in pensions, in fact if you can afford it - for tax reasons alone it's worth doing. But I feel there's sometimes a lot of people who are persuaded to put money into a pension which firstly they can't afford and secondly believe will provide for them when they're older.
There's no harm putting the money in if you can afford it, but don't delude yourself into thinking it's going to be worth anything by retirement age.
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Baskey
Member
Registered: 31st May 06
User status: Offline
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I work for a bank an have an ok pension (compared to most) however I'm not confident it will give me a decent life when I'm older.
I want to cash it in to get a deposit for a house which i can rent out and pay off in 15 odd years.
My thinking is I trust bricks and mortar than some fund manager. Anyhow it's only an idea, doubt I will get round to it !
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AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
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You can't cash in a pension. It is locked away until 65 pretty much.
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Baskey
Member
Registered: 31st May 06
User status: Offline
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Hmm well that bit of the idea is a fail then.
I still want to buy another house to rent out though and devert my monthly pension payments into that
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AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
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You can always stop contributing, but you can't pull out what you have put in.
Should really have been explained when you joined!
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Paul_J
Member
Registered: 6th Jun 02
Location: London
User status: Offline
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quote:
Originally posted by Baskey
Hmm well that bit of the idea is a fail then.
I still want to buy another house to rent out though and devert my monthly pension payments into that
Exactly... if you've got the opportunity work on giving yourself some income by investing it now (investing into property / renting it out is a good shout, especially since asset prices should rise over time with inflation... probably unlike your money in your pension  )
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fred7
Member
Registered: 17th May 04
Location: Rugeley, Staffordshire
User status: Offline
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Ive just signed up for my works pension i put 3% work put 5% into a legal and general pension wasnt that sure but because its taken before tax hardly makes a difference. Not sure its something i would do if my company wasnt putting that much in
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Marc
Member
Registered: 11th Aug 02
Location: York
User status: Offline
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Programme on 4 about pensions tonight.
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Robbo
Member
Registered: 6th Aug 02
Location: London
User status: Offline
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quote:
Originally posted by Paul_J
quote:
Originally posted by Baskey
Hmm well that bit of the idea is a fail then.
I still want to buy another house to rent out though and devert my monthly pension payments into that
Exactly... if you've got the opportunity work on giving yourself some income by investing it now (investing into property / renting it out is a good shout, especially since asset prices should rise over time with inflation... probably unlike your money in your pension )
do you understand how pensions work Paul? you arent half posting some shit in here 
a well-managed pension fund will return significantly more than bricks and mortar for significantly less input. As with all thigns, a mix of assets (shares, property and pensions) is the way forward but your supposition that pensions will be worth nothing in future is ridiculous.
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Robbo
Member
Registered: 6th Aug 02
Location: London
User status: Offline
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quote:
Originally posted by Paul_J
Program on Monday 8pm channel 4 all about pensions.
I have no problem with people putting money in pensions, in fact if you can afford it - for tax reasons alone it's worth doing. But I feel there's sometimes a lot of people who are persuaded to put money into a pension which firstly they can't afford and secondly believe will provide for them when they're older.
There's no harm putting the money in if you can afford it, but don't delude yourself into thinking it's going to be worth anything by retirement age.
....
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stuartmitchell
Member
Registered: 24th Apr 04
Location: Kirkliston, Edinburgh
User status: Offline
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I like the idea of property but the reality of having to maintain a 2nd property and deal with the tennants etc would be a pain in the ass and I dont think I have the time or patience for it.
I spoke with standard life and am going to balance savings across:
- Stakeholder Pension Plan
- SIPP
- Investment Funds product
Hopefully a nice balance of risk with that but who knows
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taylorboosh
Member
Registered: 3rd Apr 07
User status: Offline
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I have a bt work pension... Think i pay 7.5% and they double it or something, been paying 3 years and im 25. Comes off before im taxed anyways so meh
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Robbo
Member
Registered: 6th Aug 02
Location: London
User status: Offline
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u fool, why bother with that. dont you know it will be worthless by the time you retire??
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
User status: Offline
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Piss off it will be
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taylorboosh
Member
Registered: 3rd Apr 07
User status: Offline
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Doubt it... Will be reet
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nibnob21
Premium Member
Registered: 16th May 10
Location: South Derbyshire
User status: Offline
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I pay 4%, employee puts in 5%. Employer contribution increases as you get older, it's not related to how long you've been with the company. I've got it in a mid-high risk plan at the moment.
We also have a shares scheme where we can buy company shares at a discount rate once every two years. If the share price drops they will pay back what we bought them for so can't lose out (other than a small bit of interest).
When I can afford to I'll contribute a little more to my pension, and start saving more money somewhere else, probs just an ISA or something.
MX5 Project Thread
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belton
Member
Registered: 23rd Jul 09
Location: Kent
User status: Offline
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quote:
Originally posted by stuartmitchell
I like the idea of property but the reality of having to maintain a 2nd property and deal with the tennants etc would be a pain in the ass and I dont think I have the time or patience for it.
I spoke with standard life and am going to balance savings across:
- Stakeholder Pension Plan
- SIPP
- Investment Funds product
Hopefully a nice balance of risk with that but who knows
There is no risk in having three products here its about where the money is invested. Cant you see standard life are mugging you off because you are now just gunna be charged three separate management fees, for three separate products which would probably end up in the same fund anyway. I cant see the point in you having a SIPP.
Also i am surprised no one has mentioned anything about annuities? The quality of your annuity has a massive part to play here.
Everyone on this website will be auto-enrolled into a workplace pension scheme by 2018, and i think anyone who does not stay in the scheme is mad because you may be receiving slightly less cash in your pocket a month, but with employer contributions as well as your own, your are effectively receiving a pay rise.
I am fortunate enough to work for a pension fund so have a banging pension, and have good knowledge of how it/industry works.
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