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    Does anyone have a Private/Personal Pension?

    Does anyone have a Private/Personal Pension.

    As per title.

    I have a few questions

    Thank you

    26 Comments

    Original Poster

    What sort of terms are you on?
    What you recommend it?
    What are your retirement plans?


    I also wanted to ask:
    Lets take a example of 30 years till retirement.
    The stock market has gone up (over the last 20 years) so over the next 30 years it will go up (on average over 30 years)


    If you put in £100 a month, over 30 years - that's £36,000

    After deducting all the admin, cost fees, etc

    How much on average are you likely to receive back, per month?
    Are there any limits? E.g if you retire @ 60 years and the national state pension age is 75?
    Can you take the pension @ 60, without incurring any fees?


    Edited by: "MarioMan" 4th Mar

    I could be completely wrong but I thought a current rule of thumb is that ~£30k pension pot would return £1k per year annuity.

    It's like asking how long is a piece of string. You cannot possibly tell how much a pension will be worth in 30 years. It will depend on the type of funds you invest in. The admin fees of the fund, future tax rates etc.

    Original Poster

    u664541

    I could be completely wrong but I thought a current rule of thumb is that … I could be completely wrong but I thought a current rule of thumb is that ~£30k pension pot would return £1k per year annuity.



    Is there a calculator which is across all personal pensions or is it company specific?

    You can setup a SIPP and have access to your pension pot at the age of 55 if you so wish. Pension is a mine field and without proper financial advice you could make a very costly mistake. I would suggest that you do your research online using mse as suggested above and other sites and then go to an independent financial adviser (pretty rare these days) and then make your own mind. Don't get bullied into taking up the first suggestion.

    Remember your pension contributions are tax free so every £100 you put into your plan only costs you £80 (basic rate ) , or £60 if /when you are on the 40% higher rate . So makes any future projection a lot better and makes putting as much as you can afford into a pension a no brainer .
    Edited by: "rogparki" 4th Mar

    Might have to look into a private pension myself. 28 years paying into my company one and now they intend to cut it pension by 20%. My previous fear was they would find some stupid reason to sack me the week before retirement as they did to some other employee, he lost his entire pension. Nothing has changed since Robert Maxwell stole from his employees. Just hope Chuck Norris finds me and offers help.

    Original Poster

    liamf12

    Might have to look into a private pension myself. 28 years paying into my … Might have to look into a private pension myself. 28 years paying into my company one and now they intend to cut it pension by 20%. My previous fear was they would find some stupid reason to sack me the week before retirement as they did to some other employee, he lost his entire pension. Nothing has changed since Robert Maxwell stole from his employees. Just hope Chuck Norris finds me and offers help.




    Oh my dear !!! What company do you work? Name and shame it this is horrendous for the employee who got sacked a week before his pension

    Original Poster

    mtuk1

    It's like asking how long is a piece of string. You cannot possibly tell … It's like asking how long is a piece of string. You cannot possibly tell how much a pension will be worth in 30 years. It will depend on the type of funds you invest in. The admin fees of the fund, future tax rates etc.



    Well duh??

    That's why I said a average/estimate

    I have always pondered these kind of questions from such an early age( in my teens). I used to worry about it all and be non the wiser as no one could impart there knowledge on subjects like this, anyway 20 odd years later and still haven't got one, also have a few years missing in ni credits too due to caring, depression and missing work history or any kind of credits for out of work at the time
    Anyway I am a little wiser now, not much but from reading things like mse and bits and pieces here and there also radio 4 I understand it is a good thing to have a pension, like someone said if not only for the tax relief, what I don't really understand is due to this benefit why do I always hear some people say it's best not to put it into a pension, better to put in an isa or house or whatever, when there is the tax relief, is it possible to actually lose this benefit advantage over the years and come out with less than you put in?
    There is also a lot of conflicting advice and even professionals confused over elements of pension rules due to the complexity of the matter, not always helped by little tweeks being made here and ther over the many years of its existence. Apparently as with a lot of laws you have old rules mixed in with new causing a right puzzle, a bit like what isas are becoming.
    The markets have been positive whether it be housing, stock market over the past near ten years and it won't always be like that, I think a lot of people forget that markets can and do go down too, there's a lot of personal debt out there and cheap credit, sometimes I feel a lot of the positives are artificial built on cheap credit, there are people who were born only around twenty years ago who know no different and think things have always been this cheap

    I have a stake holder pension. Avoided being talked into moving it to a sipp because of the high fees at 3% plus management costs and add ons. Glad I stuck to it although I know very little about it all. 1% fee is enough

    I should of added. If you have the inclination then do it all yourself online. I have a friend that dose that and pays around £150 per year in fees where as I pay £650 and rising. Loads of Diy advice online,but like I said. It goes over my head!

    I had an AVC pension the pot was worth £26,000. The last statement I received said this was going to give me an annual pension of around £650. This works out at £12.50 a week, and to get the the whole value of the pot back I would have to claim my pension for 40 years, so if I retire at 60 I wouldn't get the whole £26,000 back until I was 100 years old.

    Original Poster

    bearcat

    I had an AVC pension the pot was worth £26,000. The last statement I … I had an AVC pension the pot was worth £26,000. The last statement I received said this was going to give me an annual pension of around £650. This works out at £12.50 a week, and to get the the whole value of the pot back I would have to claim my pension for 40 years, so if I retire at 60 I wouldn't get the whole £26,000 back until I was 100 years old.



    What's ACC?

    £650 a year????
    Blimey that's absolutely rubbish with no disrespect.

    ​AVC = Additional Voluntary Contributions. These are contributions you make to your private pension to build up an additional retirement fund. When you retire, this AVC fund can be used to top up your employer pension benefits, within Revenue limits. Mine was with Scottish Widows.

    £36000 pot will get about £175 month
    roughly a £100000 pot will get £5800 gross a year
    to get a 2/3rds average wage you need a pot of about £300000
    crazy amount of money.
    the average pension pot in England is £29000, 10 times short of what people expect.

    MarioMan

    Oh my dear !!! What company do you work? Name and shame it this is … Oh my dear !!! What company do you work? Name and shame it this is horrendous for the employee who got sacked a week before his pension


    I would but we have just had another reminder about comments on social media, I'm sure you will all be up in arms about us going on strike to protect our pensions in a few months time.

    ​when u claim your pension you get 25% tax free ,if you want it , the rest is used to buy a annuity, which then pays u a pension , when u shop for the annuity , the company's work out how long you will live , are you in good health , smoker ect , obviously if u r a smoker , with high blood pressure ...

    your money will be paid back quicker over a shorter time , you could even argue and extend it .... but being in bad health is very much to your advantage ..

    You should really speak to an independent financial advisor.

    They can get you several quotes.

    basically private pension schemes in the past say about 10/15+ years ago paid a very good amount out vs these days. when I started my job about 13 years ago they paid something like 7 or 8 % for 3 or 4% paid in by the employee know it has gone down a large amount shame for me as I didn't join then but I have been added into know as the government is kinda saying the government pension really is going to get alot worse. so even though we pay NI contributions and tax we really won't be getting enough to afford a half decent old age. so they are pushing there responsibility to the employers which has basically become unaffordable for most employers to contribute at the generous amounts in the past.

    The way I see it is if u are worried that ur family and children won't be able to help u in old age or u can't save enough up for it then either join a pension scheme if ur employer is one of the few whom are contributing more than what u have to I would go for it. we are going into difficult times ahead good look to u in this.

    The amount of income you get from your Pension pot is determined by Gilt yields (which in common with all interest rates are at an historic low) . The monthly/ annual sum will also depend on your age and general health (ie how long they expect to have to pay you for ! . It also depends on whether you want a flat rate annuity or one that increases with inflation (obviously that version starts lower) .

    Very difficult to work out what you might get in 30 years (or how much it would be worth in todays prices) , but as I said anything that gives you a 20% free addition to your monthly savings (tax relief ) is a no brainer these days .
    Edited by: "rogparki" 4th Mar

    hottoast

    You should really speak to an independent financial advisor. They can get … You should really speak to an independent financial advisor. They can get you several quotes.



    Last resort because of there high charges and Internet sourced, freely available print offs. Money men. To be avoid unless you're trying to avoid paying inheritance tax ect.. Rather die poor myself then speak to an advisor... Sorry.. Sales men.... Bit brutal my comment but to many horror stories have passed me by.

    MynameisM

    basically private pension schemes in the past say about 10/15+ years ago … basically private pension schemes in the past say about 10/15+ years ago paid a very good amount out vs these days. when I started my job about 13 years ago they paid something like 7 or 8 % for 3 or 4% paid in by the employee know it has gone down a large amount shame for me as I didn't join then but I have been added into know as the government is kinda saying the government pension really is going to get alot worse. so even though we pay NI contributions and tax we really won't be getting enough to afford a half decent old age. so they are pushing there responsibility to the employers which has basically become unaffordable for most employers to contribute at the generous amounts in the past. The way I see it is if u are worried that ur family and children won't be able to help u in old age or u can't save enough up for it then either join a pension scheme if ur employer is one of the few whom are contributing more than what u have to I would go for it. we are going into difficult times ahead good look to u in this.



    ​you are right we are heading into very difficult times, you can no longer rely on the state pension.
    with young people paying increasing costs , the thought of a pension is way down the list , I fear a society based on work till u drop, is just around the corner

    wayners4th Mar

    I have a stake holder pension. Avoided being talked into moving it to a …I have a stake holder pension. Avoided being talked into moving it to a sipp because of the high fees at 3% plus management costs and add ons. Glad I stuck to it although I know very little about it all. 1% fee is enough


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