Pension advice... to cancel or not to cancel?
24 July 2008, 03:43 AM
#31
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What do you all do with pensions from previous companies that no longer have any contributions in them? I have a few with a couple of k in each of them sitting about waiting another 30 years to pay out. I guess this is wasted money? Should they be transferred to the pension you have now? I've now got a 12% non contributory pension so would the static pensions be better off being transferred into this?
24 July 2008, 08:14 AM
#32
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Just taken out a pension (I'm 42) - It's costing me £800 a month till I am 65 and is planned to give me a pension pot of approx £450K which (depending on performance) gives me an annual pension of anything between £12 - £20K a year.
All figures above are from memory clouded by 1664 Dynamo. Will dig out actual figures and repost later.
When I am facing the grim reapers changing rooms I plan to sell everything - go to Vegas and eat cake out of a h**kers P&ssy then blow the lot at craps at the Bellagio.
All figures above are from memory clouded by 1664 Dynamo. Will dig out actual figures and repost later.
When I am facing the grim reapers changing rooms I plan to sell everything - go to Vegas and eat cake out of a h**kers P&ssy then blow the lot at craps at the Bellagio.
£12-£20k.. if it makes that in 23 year.. will............ just pay your council tax bill!!!
now crammin £800 a month with a pension just taken out!!! scarey!
thats why i thought starting one at 18 would make it easier over a longer term that i didn't need stupid amounts putting in.
I could see in 1994 that there is now way I could keep up with the inflation rate, so opted not to put more in than the extra £20 a month.
24 July 2008, 08:56 AM
#33
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IIRC you can, if you wish, take 25% of the value of the fund as a lump sum, so in this case that would be £112.5k. Your annuity would, of course, go down by 1/4 should you choose to do so.
The projected estimate I get from my pension provider assumes that I'll continue making contributions at the current rate, increasing over my working life by an average figure for pay rises. It also makes an assumption about the rate of inflation, and gives me a figure for what my pension might be worth 'in today's money'.
That's a lot of 'what-ifs', of course, but it's worth reading the fine print to work out what the figures they're quoting actually mean. The idea is just to give you an impression about what your pension might be worth if you continue your contributions at the same rate, without you having to guess for yourself whether, say, £1000 a month will be enough to live on or barely enough for a cheeseburger.
Don't forget that by the time you retire, you probably won't have a mortgage to pay, nor do you have to save anything - it's all yours to spend.
The projected estimate I get from my pension provider assumes that I'll continue making contributions at the current rate, increasing over my working life by an average figure for pay rises. It also makes an assumption about the rate of inflation, and gives me a figure for what my pension might be worth 'in today's money'.
That's a lot of 'what-ifs', of course, but it's worth reading the fine print to work out what the figures they're quoting actually mean. The idea is just to give you an impression about what your pension might be worth if you continue your contributions at the same rate, without you having to guess for yourself whether, say, £1000 a month will be enough to live on or barely enough for a cheeseburger.
Don't forget that by the time you retire, you probably won't have a mortgage to pay, nor do you have to save anything - it's all yours to spend.
24 July 2008, 11:35 AM
#34
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I just attended a Presentation at work from our Pension Advisors who set up the Group Plan.
I contract out my S2P and apparently that stops in 2012 so you dont have the choice to pay it into your own pension pot. Loverly.
Retirement age is 65 for blokes (women catch up in 2012 I believe) and between 2024 - 2046 it goes up to 68 i.e. when you can claim your state pension. Not that its worth sod all anyhow but still
Simon
I contract out my S2P and apparently that stops in 2012 so you dont have the choice to pay it into your own pension pot. Loverly.
Retirement age is 65 for blokes (women catch up in 2012 I believe) and between 2024 - 2046 it goes up to 68 i.e. when you can claim your state pension. Not that its worth sod all anyhow but still
Simon
25 July 2008, 11:44 PM
#35
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and you might only live till you're 66
30 July 2008, 06:02 PM
#36
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What a timely thread! I've got a meeting with a IFA tonight 
For the last 6 years I have been paying into a contributory pension (me 4% them 8%) but I've left that company now and work for a private practice that don't do pension schemes.
I've never thought that paying a massive % into a pension is a good idea cause unless you live till your late 80's you'll never get the benefit. This was rammed home to me when my father in-law died of a massive stroke 2 weeks into his retirement. All those years paying into his retirement fund and all my mother in-law got was a year and a half's worth of payments.
For the last 6 years I have been paying into a contributory pension (me 4% them 8%) but I've left that company now and work for a private practice that don't do pension schemes.
I've never thought that paying a massive % into a pension is a good idea cause unless you live till your late 80's you'll never get the benefit. This was rammed home to me when my father in-law died of a massive stroke 2 weeks into his retirement. All those years paying into his retirement fund and all my mother in-law got was a year and a half's worth of payments.
how did you go one?
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