Ashley Posted 19 October 2012 Posted 19 October 2012 As we are all aware from recent adverts that from next year all medium and large sized companies will be putting employees into a new pension scheme. As a young lad I've been wondering does this mean that the state pension will be abolished in future years?
Matt Posted 19 October 2012 Posted 19 October 2012 I highly doubt there will be a state pension when 'our generation' come to the current retirement age, and the current retired people I know go on to patronise me by saying 'Keep up the hard work, I need you working to pay my pension'. That's why I started my own pension as soon as I finished school and started work - Two payments of £80 a month, soon adds up, it'll either go on a house or the lump sum will go into a proper pension when I start one.
jonthefox Posted 19 October 2012 Posted 19 October 2012 I highly doubt there will be a state pension when 'our generation' come to the current retirement age, and the current retired people I know go on to patronise me by saying 'Keep up the hard work, I need you working to pay my pension'. That's why I started my own pension as soon as I finished school and started work - Two payments of £80 a month, soon adds up, it'll either go on a house or the lump sum will go into a proper pension when I start one. I also believe this is the beginning of the end for the state pension.
Daggers Posted 19 October 2012 Posted 19 October 2012 ... and the current retired people I know go on to patronise me by saying 'Keep up the hard work, I need you working to pay my pension'. Fvck me, is there anybody who you don't have a chip on your shoulder about?!
jonthefox Posted 19 October 2012 Posted 19 October 2012 I highly doubt there will be a state pension when 'our generation' come to the current retirement age, and the current retired people I know go on to patronise me by saying 'Keep up the hard work, I need you working to pay my pension'. That's why I started my own pension as soon as I finished school and started work - Two payments of £80 a month, soon adds up, it'll either go on a house or the lump sum will go into a proper pension when I start one. I don't get that.
Matt Posted 19 October 2012 Posted 19 October 2012 Fvck me, is there anybody who you don't have a chip on your shoulder about?! Wouldn't say it's a chip just patronising comments i've had, knowing chances are there won't be a state pension come my retirement age, but if you believe it's a chip amongst other things i'll leave it at that just to make you happy I don't get that. Well basically what i'm saying is along with normal savings i've set up something else that can be used should I need anything extra but ideally it is to put a lump sum to put into a pension scheme when I start a funded pension scheme, e.t.c.
MooseBreath Posted 19 October 2012 Posted 19 October 2012 My guess is that the state pension will become means tested in the future. They won't be able to take it away completely because people can still not work, opt out of auto-enrolment, and be self employed, so there will still be people who have nothing whatsoever saved for retirement and those people will have to be looked after. So I think it will still exist, but it'll just be another welfare benefit which people who have worked all of their lives, paid tax and saved diligently won't benefit from.
MooseBreath Posted 19 October 2012 Posted 19 October 2012 Well basically what i'm saying is along with normal savings i've set up something else that can be used should I need anything extra but ideally it is to put a lump sum to put into a pension scheme when I start a funded pension scheme, e.t.c. Why not just put it into a stocks and shares ISA? The only benefit to pensions over ISAs is employer contributions, since you've already got the money, it makes more sense to put it in an ISA.
Matt Posted 19 October 2012 Posted 19 October 2012 Why not just put it into a stocks and shares ISA? The only benefit to pensions over ISAs is employer contributions, since you've already got the money, it makes more sense to put it in an ISA. It is. Not that any savings are really making any money at the moment, but every little is worth having.
Bellend Sebastian Posted 19 October 2012 Posted 19 October 2012 Why not just put it into a stocks and shares ISA? The only benefit to pensions over ISAs is employer contributions, since you've already got the money, it makes more sense to put it in an ISA. Don't forget the tax relief on contributions, Moosey. That's the deal clincher for a lot of folk
MooseBreath Posted 19 October 2012 Posted 19 October 2012 Don't forget the tax relief on contributions, Moosey. That's the deal clincher for a lot of folk I'm not sure it is. You get tax relief when you put it in, but then it is taxed when you take it out, so it balances out. With an ISA you don't get tax relief but you also don't get taxed when you take it out, so that balances out as well. The deal clincher for me is employer contributions.
MooseBreath Posted 19 October 2012 Posted 19 October 2012 It is. Not that any savings are really making any money at the moment, but every little is worth having. In a cash ISA or stocks and shares ISA? In an S&S ISA you can invest in the same investment funds that pensions are invested in, giving you a good chance over the long term of thrashing the returns from ordinary cash ISAs, albeit with a bit more risk. Just a thought, I'm sure you know what you are doing
Matt Posted 19 October 2012 Posted 19 October 2012 In a cash ISA or stocks and shares ISA? In an S&S ISA you can invest in the same investment funds that pensions are invested in, giving you a good chance over the long term of thrashing the returns from ordinary cash ISAs, albeit with a bit more risk. Just a thought, I'm sure you know what you are doing Not in S&S. Wouldn't mind looking in S&S but think it may take abit of looking into and learning first, i'll see.
Bellend Sebastian Posted 19 October 2012 Posted 19 October 2012 I'm not sure it is. You get tax relief when you put it in, but then it is taxed when you take it out, so it balances out. With an ISA you don't get tax relief but you also don't get taxed when you take it out, so that balances out as well. The deal clincher for me is employer contributions. The extent of the advantage depends on your tax status when you make your contribution and when you draw your pension. At the very least, everyone gets 25 per cent of their fund back tax free when they take their benefits. I almost sound like I know what I'm talking about, don't I?
MooseBreath Posted 19 October 2012 Posted 19 October 2012 The extent of the advantage depends on your tax status when you make your contribution and when you draw your pension. At the very least, everyone gets 25 per cent of their fund back tax free when they take their benefits. I almost sound like I know what I'm talking about, don't I? Almost. Just need to do a bit more to push people into the investments with the bigger commision kickbacks and you'll sound like a pro.
Tommy G Posted 19 October 2012 Posted 19 October 2012 Matt I hope you aren't saving 2 lots of 80 quid post tax in some kind of ISA as a pension otherwise I'm shocked at the advice you've got! My 2 cents worth is that most pensions aren't worth the paper they are written on, the old public sectors pensions were decent especially teachers...but even that is going out the window. I'd try and get a second mortgage off your earning present you with that opportunity. Rent out immediately, and don't pocket any of the rental. Re mortgage 15 years down the line and get a second. Same again and repeat once more. By the time you are 65 you could have 3 mortgage free properties to do as you wish with. Plus the one you live in. They can then be your pension
MooseBreath Posted 19 October 2012 Posted 19 October 2012 Matt I hope you aren't saving 2 lots of 80 quid post tax in some kind of ISA as a pension otherwise I'm shocked at the advice you've got! My 2 cents worth is that most pensions aren't worth the paper they are written on, the old public sectors pensions were decent especially teachers...but even that is going out the window. I'd try and get a second mortgage off your earning present you with that opportunity. Rent out immediately, and don't pocket any of the rental. Re mortgage 15 years down the line and get a second. Same again and repeat once more. By the time you are 65 you could have 3 mortgage free properties to do as you wish with. Plus the one you live in. They can then be your pension This is all bad advice.
jonthefox Posted 19 October 2012 Posted 19 October 2012 This is all bad advice. Why's that?. Safe as houses, or so they say. I'm thinking of an investment property next year.
MooseBreath Posted 19 October 2012 Posted 19 October 2012 Why's that?. Safe as houses, or so they say. I'm thinking of an investment property next year. Buy to lets aren't the guaranteed passive cash cow some people think they are. They can work well of course, if you know what you are doing in terms of buying properties and you have done the numbers and you get good reliable tenants. But even then, in the absence of a property price boom any time soon, the return is likely to be pretty meagre considering the risk. You can get better returns elsewhere with less risk. Mainly I was referring to Tommy G's idea to not have any kind of pension provision and instead bet your entire retirement (if you can call looking after a property portfolio a retirement) on buy to lets. That would be foolish, in my opinion.
MooseBreath Posted 19 October 2012 Posted 19 October 2012 I'm going to wear out the smilie soon. Sorry. I don't get it. What's funny?
Bellend Sebastian Posted 19 October 2012 Posted 19 October 2012 Almost. Just need to do a bit more to push people into the investments with the bigger commision kickbacks and you'll sound like a pro. 'Commission kick backs'? You're SO 1990s, darling. The big earnings from pensions ended long before I came into the industry. I do it mainly for the love and adoration. Just like you, Moosey
Babylon Posted 20 October 2012 Posted 20 October 2012 Cover all bases... Pension, self select S&S ISA and Cash ISA. Plus when most of my mortgage is paid off I might look in to a buy to let. So far the S&S ISA has yielded a 50% return on my investment over a the last year. (cheers barclays shares).
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