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Pensions - Do you have one?

Discussion in 'General Discussion' started by afraser2k, 9 Mar 2006.

  1. afraser2k

    Sgarrista

    Joined: 18 Oct 2002

    Posts: 7,516

    Location: Glasgow

    Other than the state pension has anyone decided to go for a private or company pension? Not that I'm too clued up on them I think I'll get the state pension plus one from my work.

    University of Glasgow's is still a final salary scheme although worth slightly less than when I first joined it although I'll now have to retire at 67 before I get it when previously it was 65.

    When I first joined (the pension) at 21 I wasn't too bothered about pensions but now that I'm nearing 30 (next year :( ) I'm now glad I did. We're supposed to pay 40 years into it so I could take early retirement at 61 from what I understand.

    So what's everyone elses position if they don't mind me asking?
     
    Last edited: 9 Mar 2006
  2. Burbleflop

    PermaBanned

    Joined: 7 May 2003

    Posts: 4,247

    Location: Away from here

    I've had a private pension since I started this job 7 years ago. I see it as the only option because by the time I reach retirement age (85 or so I guess the way things are going) the state pension won't exist any longer.
     
  3. Supercow

    Capodecina

    Joined: 30 Aug 2003

    Posts: 13,979

    Location: Straya

    I doubt I'll live long enough to see retirement, so I dont bother :p
     
  4. ~J~

    Sgarrista

    Joined: 20 Oct 2003

    Posts: 7,558

    Location: London

    I have a rather selfish but kinda practical approach to my pension.

    I don't have one. I have no plans of retiring, I can't ever imagine doing 'nothing' but sit in a shackletons high chair sucking werthers originals, I need to keep busy, so whilst I may reduce my hours, I just can't see me not working at all.

    I'm an only child, my parents have a large property which would be my 'asset' when anything happens to them (god forbid), and the lump sum of this property would probably go as one lump sum into some kind of high-interest savings account which would act as a replacement pension(ish) kinda affair.

    Awful I know, a bit selfish, but a wee-bit practical.
     
  5. Admiral Huddy

    Caporegime

    Joined: 17 Feb 2003

    Posts: 29,606

    Location: Chelmsford

    If you have the opertunity for a Company pension then take it without hesitation.. Rules are that you can't have a private and company pension but you can take an AVC if you want to boost it a bit.
     
  6. siztenboots

    Wise Guy

    Joined: 18 Oct 2002

    Posts: 1,601

    Location: Fab36 Dresden

    Same here, University. I do not miss the money as I never see and as it is more tax efficient (20%) . Start the habit early .
     
  7. Berserker

    Man of Honour

    Joined: 4 Nov 2002

    Posts: 15,454

    Location: West Berkshire

    I've had a personal pension since I was 23. I now have three, although one is being closed. Don't pay as much in as I should, but at least I'm in a better state than those who have none. :)
     
  8. Ukadder

    Wise Guy

    Joined: 3 Aug 2004

    Posts: 1,752

    Location: Essex

    I've got one I started last year. Only pay in £40 a month but the company match that, all in my name rather than with the company so I'll keep it when I leave my job etc
     
  9. Desmo

    Soldato

    Joined: 18 Oct 2002

    Posts: 6,597

    Location: Chillin' on the Boat

    Had my pension for about 7 or 8 years now I think, and glad I started it early :D
    Piggy has just got hers sorted at work now too :)
     
  10. mightynimrod

    Mobster

    Joined: 31 Jan 2003

    Posts: 4,267

    Location: Lincoln LN3

    My pension is going to be the "other" property im going to be buying to rent out.

    Get someone else to pay for it and reap the benefits later on when i sell it in 25-30 years :D
     
  11. Tunney

    Capodecina

    Joined: 11 Oct 2004

    Posts: 14,550

    Location: London

    Same here. My employer will match my contributions up to a certain percentage of my salary.

    I think it's worth doing as it's money for free.
     
  12. singist

    Mobster

    Joined: 18 Oct 2002

    Posts: 4,446

    Location: Student Hell Headingley

    I posted the last time this came up but still feel the same so:

    I joined a scheme in 1978 and paid the maximum allowed (15.75% of gross) for 27 years; retired early (55) but was shocked to see what my annuity was ........ £260 a month! just as well that I didn't rely on it for living expenses eh?

    I would advise investing your money in property; it's unlikely that you will do worse than I did and very likely that you will make a lot more.

    You pays your money and takes your choice/chance ........ each to their own, I suppose.

    Good luck, whatever you decide. :)
     
  13. Berserker

    Man of Honour

    Joined: 4 Nov 2002

    Posts: 15,454

    Location: West Berkshire

    That could have happened to me if I'd stuck with the original pension company I was in, but I've moved and done a little hand-picked fund management with the new policy - shares, property, etc now, which might help. Besides, it's a sad truth that early retirement severely damages annuity rates. :(
     
  14. afraser2k

    Sgarrista

    Joined: 18 Oct 2002

    Posts: 7,516

    Location: Glasgow

    Well if I decided to retire at 55 the most likely reason was that if the university offered a lump sum to get rid of me, which they usually do to get rid of higher grade staff. This happened with my boss who received a £12K/yr pension plus a lump sum in the region of £35,000 and thanks to him having paid off his mortgage he hasn't had to touch it so is living a reasonable life now.

    When cash flow improves I plan on investing in an ISA as they seem to be a decent option. Housing just seems risky to me as knowing my luck the market will crash when I want to retire. ;)
     
  15. Von Luck

    Wise Guy

    Joined: 24 Nov 2005

    Posts: 2,377

    ..
     
    Last edited: 21 Apr 2006
  16. VIRII

    PermaBanned

    Joined: 24 Jul 2003

    Posts: 30,259

    I very much doubt that many pensions will pay out in 30 years time.
    We have seen pension funds plundered before (maxwell) and with the low numbers of people putting money into them, large numbers of people expecting payout and poor investment returns I think pensions are pretty much doomed.

    If your endowment can't pay out why will your pension, or how will your pension?

    I also assume that many of us will never reach retirement age and that it will keep being raised and raised. I have unhappy visions of me being 75 and working in B&Q explaining the basics of plumbing or something to some spotty oik in his first flat before I finally drop dead on the shop floor in the wallpaper section or something.

    Best of luck to those who are investing, I hope the markets pick up. Instead of a pension I am trying to pay my house off early and buy a second one. I think it might be a better long term investment, failing that it is something to leave the kids or pay for my healthcare if I need longterm sickcare.

    Do not rely on the state to help you in anyway when you're old, at least not until they've sucked every last penny of your kids inheritance away from you and them. For those hoping to inherit from thier folks - good luck. I doubt much of what they have will escape the tax man after death. After all just because you had well off parents why should you inherit, there are poor people who need it more than you ;) It is not as though YOU earnt it or deserved it is it. I imagine that will be the Govt line.
     
  17. Goliath

    Wise Guy

    Joined: 20 Aug 2003

    Posts: 2,139

    Location: The Republic

    If the Glasgow scheme is the USS (University Superannuation Scheme) then I strongly reccommend that you join up - if only for the reason that the Uni will contribute 14% of your wage before tax to the scheme, you contribute 6.35% . There are very few employers who will give you 14% per month tax free to live on when you retire - even if the value of the pension doesn't go up that much it's still 14% of your salary that you wouldn't have otherwise (and if you work out what 14% of your wage is, imagine trying to save that amount per month into a savings account!)
     
  18. Belmit

    Man of Honour

    Joined: 7 Nov 2002

    Posts: 7,612

    Location: The Winchester

    I have only been paying into a pension for the last year, but I put far more into an ISA each year than I do the pension.

    A statistic that was thrown at me recently was that for every five years you put off paying into a pension, you can halve the total amount you can expect to receive at the end. Not sure how true that is but it made me paranoid enough to at least start putting in a token amount each month.
     
  19. afraser2k

    Sgarrista

    Joined: 18 Oct 2002

    Posts: 7,516

    Location: Glasgow

    I've been a member of the scheme for eight years so far. Editted my original post to make it clearer. :)

    I wanted to see if it's true that a lot more younger people aren't too bothered about pensions.
     
    Last edited: 9 Mar 2006
  20. Snow-Munki

    Capodecina

    Joined: 18 Oct 2002

    Posts: 10,054

    Location: At home

    got one with my company, something like the employer will pay x% towards it, and tax benefits.

    didn't look into it too much but at least stops me buying so much rubbish :p