How much should you have saved? by say 25? 30? 35? and 40?
05 February 2014, 11:05 AM
#272
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NHS contributions 2014/15...
http://www.kmpt.nhs.uk/kmps-news/Pro...ts-2014-15.htm
9.3% for your average nurse and 14.5% for your average consultant.
Lot higher than I thought to be fair.
John are these still final salary pension schemes? (so 40yrs service, 40/60 of final salary?)
Edited, just read, they are 1/54 type schemes with no automatic lump sum payment. Is there a cap, or could you theoretically do 50yrs (18-68) and get 50/54 of your averaged final salary? 1/54 is not to be sniffed at, pretty good deal?
http://www.kmpt.nhs.uk/kmps-news/Pro...ts-2014-15.htm
9.3% for your average nurse and 14.5% for your average consultant.
Lot higher than I thought to be fair.
John are these still final salary pension schemes? (so 40yrs service, 40/60 of final salary?)
Edited, just read, they are 1/54 type schemes with no automatic lump sum payment. Is there a cap, or could you theoretically do 50yrs (18-68) and get 50/54 of your averaged final salary? 1/54 is not to be sniffed at, pretty good deal?
Last edited by LEO-RS; 05 February 2014 at 11:27 AM.
05 February 2014, 11:20 AM
#273
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I contribute to a SIPP now and put it in a cheap fund: 80/20 equity/fixed income.
And because I have worked for various employers I have some pensions funds in various schemes, including the Australian superfunds, but the rest are UK pension schemes.
I might consolidate it one day but for now can't be bothered.
It's quite scary actually, knowing how much you need to get x amount of annuity.
I expect to be fairly skint in retirement.
And because I have worked for various employers I have some pensions funds in various schemes, including the Australian superfunds, but the rest are UK pension schemes.
I might consolidate it one day but for now can't be bothered.
It's quite scary actually, knowing how much you need to get x amount of annuity.
I expect to be fairly skint in retirement.
05 February 2014, 11:30 AM
#274
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I contribute to a SIPP now and put it in a cheap fund: 80/20 equity/fixed income.
And because I have worked for various employers I have some pensions funds in various schemes, including the Australian superfunds, but the rest are UK pension schemes.
I might consolidate it one day but for now can't be bothered.
It's quite scary actually, knowing how much you need to get x amount of annuity.
I expect to be fairly skint in retirement.
And because I have worked for various employers I have some pensions funds in various schemes, including the Australian superfunds, but the rest are UK pension schemes.
I might consolidate it one day but for now can't be bothered.
It's quite scary actually, knowing how much you need to get x amount of annuity.
I expect to be fairly skint in retirement.
In addition, you're more likely to need money 65-80 (Still active), than you are 80-95 (Zimmer frame) so I would say income draw down would be best choice. The rules are changing all the time though so you never quite know what will happen when its your turn to be tossed out on the scrap heap.
Last edited by LEO-RS; 05 February 2014 at 11:31 AM.
05 February 2014, 11:53 AM
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GPs have always been on a career average rather than final salary scheme and because we are self employed we get to pay the employer's contributions too, hence around 28%. You can take your pension earlier with an actuarial reduction, but the minimum in the 2015- scheme will be 55, whereas it was 50 in the 1995 scheme I'm in where you would get 40% of the pension you would have at 60. Annual and lifetime allowances also destroy tax reliefs.
I need to avoid income tax as well as tax on pension contributions and a scheme that no longer makes sense.
I think I will freeze my benefits in the old scheme but not draw the pension until 60 and make my own arrangements (not through a private pension either, they aren't worth it with the new reductions in annual and lifetime allowances).
I need to avoid income tax as well as tax on pension contributions and a scheme that no longer makes sense.
I think I will freeze my benefits in the old scheme but not draw the pension until 60 and make my own arrangements (not through a private pension either, they aren't worth it with the new reductions in annual and lifetime allowances).
05 February 2014, 05:09 PM
#276
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NHS contributions 2014/15...
http://www.kmpt.nhs.uk/kmps-news/Pro...ts-2014-15.htm
9.3% for your average nurse and 14.5% for your average consultant.
Lot higher than I thought to be fair.
John are these still final salary pension schemes? (so 40yrs service, 40/60 of final salary?)
Edited, just read, they are 1/54 type schemes with no automatic lump sum payment. Is there a cap, or could you theoretically do 50yrs (18-68) and get 50/54 of your averaged final salary? 1/54 is not to be sniffed at, pretty good deal?
http://www.kmpt.nhs.uk/kmps-news/Pro...ts-2014-15.htm
9.3% for your average nurse and 14.5% for your average consultant.
Lot higher than I thought to be fair.
John are these still final salary pension schemes? (so 40yrs service, 40/60 of final salary?)
Edited, just read, they are 1/54 type schemes with no automatic lump sum payment. Is there a cap, or could you theoretically do 50yrs (18-68) and get 50/54 of your averaged final salary? 1/54 is not to be sniffed at, pretty good deal?
Not sure where you got 1/54 from. They are a 1/80 scheme for all hospital doctors, so after 40 years in the NHS you'll get 50% of your final salary.
Or this was with the outgoing system anyway, now it is no longer final salary.
Even 1/80th was not bad but with retirement age at 68 I'm not quite sure what do now ie whether to freeze the existing pot under the old system and opt out of the new one.
There is no fricking way I'm working until 68! I need to get more BTLs and live off people like TDW
05 February 2014, 05:11 PM
#277
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Pensions are not a waste of money, employer matched contributions are free money. If you opt in to your company pension scheme you are automatically giving yourself a pay rise (Your cost to the company increases) In addition, anyone paying 40%+ taxation rates would be stupid not to be putting money away into a pension fund especially as it's highly likely it gets 40+% relief on the way in but will only suffer 20% taxation on the way out. You win with the 20% difference, along with the tax free cash, along with the free money from your employers.
Just an example...
Employee pays in via salary sacrifice £500pm to his fund, employer matches this £500pm to take the monthly contribution into the fund to £1000pm. The scheme used is salary sacrifice which means that if you are in the higher tax band salary wise, your loss is £500pm (Gross) but only £290 (Net) (42% = 40% Income Tax + 2% NI)
So for a £290 deduction from your net take home pay, you are getting £1,000 put into your pot each month. How can that be seen as bad value
That's not all, for every £1,000 put into your pension pot, you are allowed to withdraw £250 of that tax free which means of that £290pm net contribution you are making each month, you will get £250 of that back with only £40 of your £290, or £40 of the £750pm contribution going into the fund to buy an annuity (And taxed at the lower 20% rate) That is worst case scenario assuming no growth which of course is not true. If we add in growth where the fund is performing reasonably well over its life, you can in essence get all of your net contributions back when you decide to take the 25% tax free cash out. If you put in £100,000 (Net) over your working life, you can expect to take that same £100,000 (Net) out at the other end. The remaining 75% being made up of employers contributions, tax relief and growth. This means that when you take your 25% out, the other 75% used to buy the annuity has cost you sweet **** all
People that say pensions are crap are the people who do not understand them. They are ridiculously good value saving plans.
I would say you should aim to put enough away to give you a comfortable retirement. This would be a monthly income around 1/2 to 2/3 of your salary.
Just an example...
Employee pays in via salary sacrifice £500pm to his fund, employer matches this £500pm to take the monthly contribution into the fund to £1000pm. The scheme used is salary sacrifice which means that if you are in the higher tax band salary wise, your loss is £500pm (Gross) but only £290 (Net) (42% = 40% Income Tax + 2% NI)
So for a £290 deduction from your net take home pay, you are getting £1,000 put into your pot each month. How can that be seen as bad value
That's not all, for every £1,000 put into your pension pot, you are allowed to withdraw £250 of that tax free which means of that £290pm net contribution you are making each month, you will get £250 of that back with only £40 of your £290, or £40 of the £750pm contribution going into the fund to buy an annuity (And taxed at the lower 20% rate) That is worst case scenario assuming no growth which of course is not true. If we add in growth where the fund is performing reasonably well over its life, you can in essence get all of your net contributions back when you decide to take the 25% tax free cash out. If you put in £100,000 (Net) over your working life, you can expect to take that same £100,000 (Net) out at the other end. The remaining 75% being made up of employers contributions, tax relief and growth. This means that when you take your 25% out, the other 75% used to buy the annuity has cost you sweet **** all People that say pensions are crap are the people who do not understand them. They are ridiculously good value saving plans.
I would say you should aim to put enough away to give you a comfortable retirement. This would be a monthly income around 1/2 to 2/3 of your salary.
05 February 2014, 05:57 PM
#279
Pensions are not a waste of money, employer matched contributions are free money. If you opt in to your company pension scheme you are automatically giving yourself a pay rise (Your cost to the company increases) In addition, anyone paying 40%+ taxation rates would be stupid not to be putting money away into a pension fund especially as it's highly likely it gets 40+% relief on the way in but will only suffer 20% taxation on the way out. You win with the 20% difference, along with the tax free cash, along with the free money from your employers.
Just an example...
Employee pays in via salary sacrifice £500pm to his fund, employer matches this £500pm to take the monthly contribution into the fund to £1000pm. The scheme used is salary sacrifice which means that if you are in the higher tax band salary wise, your loss is £500pm (Gross) but only £290 (Net) (42% = 40% Income Tax + 2% NI)
So for a £290 deduction from your net take home pay, you are getting £1,000 put into your pot each month. How can that be seen as bad value That's not all, for every £1,000 put into your pension pot, you are allowed to withdraw £250 of that tax free which means of that £290pm net contribution you are making each month, you will get £250 of that back with only £40 of your £290, or £40 of the £750pm contribution going into the fund to buy an annuity (And taxed at the lower 20% rate) That is worst case scenario assuming no growth which of course is not true. If we add in growth where the fund is performing reasonably well over its life, you can in essence get all of your net contributions back when you decide to take the 25% tax free cash out. If you put in £100,000 (Net) over your working life, you can expect to take that same £100,000 (Net) out at the other end. The remaining 75% being made up of employers contributions, tax relief and growth. This means that when you take your 25% out, the other 75% used to buy the annuity has cost you sweet **** all
People that say pensions are crap are the people who do not understand them. They are ridiculously good value saving plans.
I would say you should aim to put enough away to give you a comfortable retirement. This would be a monthly income around 1/2 to 2/3 of your salary.
Just an example...
Employee pays in via salary sacrifice £500pm to his fund, employer matches this £500pm to take the monthly contribution into the fund to £1000pm. The scheme used is salary sacrifice which means that if you are in the higher tax band salary wise, your loss is £500pm (Gross) but only £290 (Net) (42% = 40% Income Tax + 2% NI)
So for a £290 deduction from your net take home pay, you are getting £1,000 put into your pot each month. How can that be seen as bad value
That's not all, for every £1,000 put into your pension pot, you are allowed to withdraw £250 of that tax free which means of that £290pm net contribution you are making each month, you will get £250 of that back with only £40 of your £290, or £40 of the £750pm contribution going into the fund to buy an annuity (And taxed at the lower 20% rate) That is worst case scenario assuming no growth which of course is not true. If we add in growth where the fund is performing reasonably well over its life, you can in essence get all of your net contributions back when you decide to take the 25% tax free cash out. If you put in £100,000 (Net) over your working life, you can expect to take that same £100,000 (Net) out at the other end. The remaining 75% being made up of employers contributions, tax relief and growth. This means that when you take your 25% out, the other 75% used to buy the annuity has cost you sweet **** all People that say pensions are crap are the people who do not understand them. They are ridiculously good value saving plans.
I would say you should aim to put enough away to give you a comfortable retirement. This would be a monthly income around 1/2 to 2/3 of your salary.
So I put all my money,time and effort into property and it paid off for me to the point where i'm now doing my retirement plan, 3 apartments with swimming pool in an old Istrian farm house on a nice big hill 20mins by road from the sea, which when finished should see me with an income of circa £50k pa or I could sell for around £500k and possibly more when you consider the income it will generate, no way i'd get anywhere near that in a pension scheme.
I did actually say in my original post "ordinary working people" there is also the fact that no one knows what will happen with these pensions and even if there will be anything in them in 20/30yrs I'd sooner my fate was in my own hands as opposed to risking it to others good graces.
I used to work for Vodafone Corporate and visited some of these Pension company head quarters, chinese water gardens, £50k works of "art" as in a big lump of stone in a roundabout, all driving top of the range merc's, BMW's, Range Rovers you name it they had it, whilst I understand the need to employ top quality people I don't think the people paying into these funds would be too happy about the sheer opulence on display at some of these sites, I for one would not like to think I was funding their luxurious surrounds and lifestyle with my pension contributions, you could tell they were using other peoples money by how easy it was for them to spend it and all the crap they bought.
05 February 2014, 06:00 PM
#280
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That art work isn't a haw haw matter, FYI.
You also know what women are like. Not all, but some would do almost anything for you, if you send them a > X; even if it's a virtual trap.
I'll keep it simple with my interpretation, because I'm all for simplicity, me!
So, here we go.
The creator thought he did not know what beautiful was??? HA! To my interpretation, he did know that ‘nothing’ was beautiful.
His art speaks for itself. The animal instinct is in coma, so is the innocence. On one hand there’s a world to lose, on the other hand there’s nothing to gain. In fact he knows that there’s nothing to lose, and nothing to gain. The bonding of mind and thin air filled with nothingness in this art work is spectacular! 
On the downside (excuse the irony), what contaminates this art work is the concern for what’s being lost, what’s not gained, and the sight of what’s owned is immaterial. All of that is ‘nothing’ in 'true' melancholy state of mind.
A reasonable self-portrayal, but I’ve seen some real living works of art much more melancholy than that. I could go on, but I’m gonna leave it here.
You also know what women are like. Not all, but some would do almost anything for you, if you send them a > X; even if it's a virtual trap.
I'll keep it simple with my interpretation, because I'm all for simplicity, me!
So, here we go.
The creator thought he did not know what beautiful was??? HA! To my interpretation, he did know that ‘nothing’ was beautiful.
His art speaks for itself. The animal instinct is in coma, so is the innocence. On one hand there’s a world to lose, on the other hand there’s nothing to gain. In fact he knows that there’s nothing to lose, and nothing to gain. The bonding of mind and thin air filled with nothingness in this art work is spectacular! On the downside (excuse the irony), what contaminates this art work is the concern for what’s being lost, what’s not gained, and the sight of what’s owned is immaterial. All of that is ‘nothing’ in 'true' melancholy state of mind.
A reasonable self-portrayal, but I’ve seen some real living works of art much more melancholy than that. I could go on, but I’m gonna leave it here.
05 February 2014, 06:31 PM
#282
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I did aI used to work for Vodafone Corporate and visited some of these Pension company head quarters, chinese water gardens, £50k works of "art" as in a big lump of stone in a roundabout, all driving top of the range merc's, BMW's, Range Rovers you name it they had it, whilst I understand the need to employ top quality people I don't think the people paying into these funds would be too happy about the sheer opulence on display at some of these sites, I for one would not like to think I was funding their luxurious surrounds and lifestyle with my pension contributions, you could tell they were using other peoples money by how easy it was for them to spend it and all the crap they bought.
I remember reading an article on the Norwegian sovereign wealth fund (the largest pension fund on the planet, owning 1% of the worlds stocks)
And it is managed by a small team numbering in the tens - from the few simple offices in a office block in downtown Oslo - I would imagine they are all on modest (by banking standards) salaries too
05 February 2014, 09:02 PM
#285
Yes we are continually fed this line - the need for all the extraneous crap
I remember reading an article on the Norwegian sovereign wealth fund (the largest pension fund on the planet, owning 1% of the worlds stocks)
And it is managed by a small team numbering in the tens - from the few simple offices in a office block in downtown Oslo - I would imagine they are all on modest (by banking standards) salaries too
I remember reading an article on the Norwegian sovereign wealth fund (the largest pension fund on the planet, owning 1% of the worlds stocks)
And it is managed by a small team numbering in the tens - from the few simple offices in a office block in downtown Oslo - I would imagine they are all on modest (by banking standards) salaries too
Positively over staffed! Bernie Madoff managed with just two employees.
05 February 2014, 11:20 PM
#286
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The wonderful thing about the Madoff scam, is that he actually turned "investors" away
They had to beg him to take their money - laughable and crazy at the same time
They had to beg him to take their money - laughable and crazy at the same time
06 February 2014, 07:09 AM
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06 February 2014, 07:09 AM
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http://www.nhsbsa.nhs.uk/Pensions/4059.aspx
06 February 2014, 07:47 AM
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06 February 2014, 07:48 AM
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06 February 2014, 07:51 AM
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Yes we are continually fed this line - the need for all the extraneous crap
I remember reading an article on the Norwegian sovereign wealth fund (the largest pension fund on the planet, owning 1% of the worlds stocks)
And it is managed by a small team numbering in the tens - from the few simple offices in a office block in downtown Oslo - I would imagine they are all on modest (by banking standards) salaries too
I remember reading an article on the Norwegian sovereign wealth fund (the largest pension fund on the planet, owning 1% of the worlds stocks)
And it is managed by a small team numbering in the tens - from the few simple offices in a office block in downtown Oslo - I would imagine they are all on modest (by banking standards) salaries too
Most funds don't beat the indexes and that is a fact, yet how much wealth flows into the pockets of fund managers and their cohorts?
It looks to me like a big scam on a social scale even if some managers arguably deserve rewarding when they do well.
06 February 2014, 09:29 AM
#292
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That's quite interesting don't you think?
Most funds don't beat the indexes and that is a fact, yet how much wealth flows into the pockets of fund managers and their cohorts?
It looks to me like a big scam on a social scale even if some managers arguably deserve rewarding when they do well.
Most funds don't beat the indexes and that is a fact, yet how much wealth flows into the pockets of fund managers and their cohorts?
It looks to me like a big scam on a social scale even if some managers arguably deserve rewarding when they do well.
but in our economic model it has simply become "the end" in itself
I have also made the point that the last 10 to 15 years has seen the largest flow of wealth into "the pockets of fund managers and their cohorts" - the world has ever seen
and what really interest me is how little this is really discussed.
20 March 2014, 05:19 PM
#293
Stumbled across this thread whilst searching for a percentage rate of 2.5 engine failures and what a read haha. Seeing as i've spent the last 20 mins reading I guess i may as well give my input. Back on topic.
I'm 21, dad ran off to NZ when i was young leaving my mum in huge dept and subsequently leading to her bankruptcy when i was about 16. I've payed rent since I was 17 and because my mum was adopted there is no money for me to ever inherit. I've worked since i was 13 in various jobs whilst at school and college, used to spend every penny on racing downhill mountain bikes but had to give up when I got my own car due to insurance and fuel bills. Left college at 20 after getting a HND but before completing my bEng due to a job offer that was over my "if i get a job offer with a salary over ** I will drop out" criteria and have been here a year now. Live with my girlfriend in Aberdeen which is silly expensive in a rented flat and I've managed to save around 5k so far, 6k including the value of my current car that will go towards buying an impreza sti as soon as humanly possible. I plan to get on the property ladder but i don't see that happening any time soon due to the cost of decent houses around Aberdeen. And in keeping with the theme of the last 8 pages I pay 8% of my salary via salary sacrifice in which my employer puts in 15%. Seems a good deal to me.
I'm 21, dad ran off to NZ when i was young leaving my mum in huge dept and subsequently leading to her bankruptcy when i was about 16. I've payed rent since I was 17 and because my mum was adopted there is no money for me to ever inherit. I've worked since i was 13 in various jobs whilst at school and college, used to spend every penny on racing downhill mountain bikes but had to give up when I got my own car due to insurance and fuel bills. Left college at 20 after getting a HND but before completing my bEng due to a job offer that was over my "if i get a job offer with a salary over ** I will drop out" criteria and have been here a year now. Live with my girlfriend in Aberdeen which is silly expensive in a rented flat and I've managed to save around 5k so far, 6k including the value of my current car that will go towards buying an impreza sti as soon as humanly possible. I plan to get on the property ladder but i don't see that happening any time soon due to the cost of decent houses around Aberdeen. And in keeping with the theme of the last 8 pages I pay 8% of my salary via salary sacrifice in which my employer puts in 15%. Seems a good deal to me.
20 March 2014, 06:38 PM
#294
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Fascinating read from all (ok I skipped a few pages).
I'm 29, worlds biggest tight **** and always enjoyed saving.BUT I've wasted 10 years renting my current house whilst planning to save and buy a house outright.The thing, as I'm sure you all know, as I've saved the house prices have risen, as has the £5-600 p/m rent crippled my pocket.I'm now regretting this "saving to buy outright" plan, but to answer your question I have roughly 150k saved (but mainly as float money and not banked as I'm pro gambler) at 29 but again I have no property or business to my name and I wont be inheriting much either.As already said health and family health is priceless and really all that matters.
Dale
I'm 29, worlds biggest tight **** and always enjoyed saving.BUT I've wasted 10 years renting my current house whilst planning to save and buy a house outright.The thing, as I'm sure you all know, as I've saved the house prices have risen, as has the £5-600 p/m rent crippled my pocket.I'm now regretting this "saving to buy outright" plan, but to answer your question I have roughly 150k saved (but mainly as float money and not banked as I'm pro gambler) at 29 but again I have no property or business to my name and I wont be inheriting much either.As already said health and family health is priceless and really all that matters.
Dale
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