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UK pensions


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Hi guys this thread is about pensions the pros and cons but mostly cons lol I want to learn more about them and why they are bad ect and I want to know what you guys are doing about your retirement if you’ve got a pension,Gold,coins,properties,ect any information will be appreciated it. people seem to think pensions are good but in reality I know they are not so put down the cons and other alternatives to a pension thanks

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DC Pensions are not too bad. You pay in, Your Employer pays in and you also get Tax relief added by the Government. If you get the Maximum payment from your Employer it can soon add up a lot of FREE money. Same as any other investment you must Research and do your homework regarding Funds to invest in. Its another Finger in another Pie , your funds will soon grow and you can access at 55 if you wish. I am happy to pay a small percentage of my wages into my DC Pension, I am happy to purchase Gold and Silver , do not place your Eggs all in one Basket. 

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I dont know why anyone would say they are bad.  Long term saving with tax advantage, you get 20% (or more for high earners) of your money back from the government.  Only bad thing that comes to mind is the state pension isnt very much and wont get better in the coming decades. 

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TBH if you are paying 40% tax and your employer will also make contributions, then imo a private pension is probably the BEST investment you can make. Sure their growth projections should be taken with a pinch of salt, so just assume 3% instead of 7%.

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3 hours ago, GrahamDiamond said:

DC Pensions are not too bad. You pay in, Your Employer pays in and you also get Tax relief added by the Government. If you get the Maximum payment from your Employer it can soon add up a lot of FREE money. Same as any other investment you must Research and do your homework regarding Funds to invest in. Its another Finger in another Pie , your funds will soon grow and you can access at 55 if you wish. I am happy to pay a small percentage of my wages into my DC Pension, I am happy to purchase Gold and Silver , do not place your Eggs all in one Basket. 

 I understand if you put in 80p then the government make it up to a pound so if I put in 5% and my employer puts 5% let’s say I have £400,000 by the time I retire then I can withdraw 25% tax free but the rest I have to pay 20% I think that’s 60k gone and if I die before I get my pension then my spouse get some at a reduced rate and the rest go back to the pension company that’s how they make so much it seems like a scam really it’s all ifs ands and buts your putting your future in someone else’s hands there is more cons aswell like tax,inflation and what if the pension company goes bust I’m sure there has been cases of people not getting their pension also it’s all about how good the investment do that affects the money you get and then inheritance tax ect also here’s a question when you come to retirement age can you withdraw all the money out of your pension in one good like all of the 400k also I’m 21 and by the time I retire the age will be 75 to 80 lol. Would it not be better to put the money you earn into property,gold,coins,jewellery,land,ect as a form of investment 

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11 minutes ago, Platinumskies said:

 I understand if you put in 80p then the government make it up to a pound so if I put in 5% and my employer puts 5% let’s say I have £400,000 by the time I retire then I can withdraw 25% tax free but the rest I have to pay 20% I think that’s 60k gone and if I die before I get my pension then my spouse get some at a reduced rate and the rest go back to the pension company that’s how they make so much it seems like a scam really it’s all ifs ands and buts your putting your future in someone else’s hands there is more cons aswell like tax,inflation and what if the pension company goes bust I’m sure there has been cases of people not getting their pension also it’s all about how good the investment do that affects the money you get and then inheritance tax ect also here’s a question when you come to retirement age can you withdraw all the money out of your pension in one good like all of the 400k also I’m 21 and by the time I retire the age will be 75 to 80 lol. Would it not be better to put the money you earn into property,gold,coins,jewellery,land,ect as a form of investment 

You would only pay tax on any amount above your personal allowance that your pension “pays” you in a tax year.  You certainly won’t pay 20% on the full 75% that remains after the tax free 25%.

Get some recommendations from friends and family for an independent financial adviser and see if they will have a free chat with you about it.  Might be the best conversation you ever have.  Older you might thank you.

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7 minutes ago, Platinumskies said:

 I understand if you put in 80p then the government make it up to a pound so if I put in 5% and my employer puts 5% let’s say I have £400,000 by the time I retire then I can withdraw 25% tax free but the rest I have to pay 20% I think that’s 60k gone and if I die before I get my pension then my spouse get some at a reduced rate and the rest go back to the pension company that’s how they make so much it seems like a scam really it’s all ifs ands and buts your putting your future in someone else’s hands there is more cons aswell like tax,inflation and what if the pension company goes bust I’m sure there has been cases of people not getting their pension also it’s all about how good the investment do that affects the money you get and then inheritance tax ect also here’s a question when you come to retirement age can you withdraw all the money out of your pension in one good like all of the 400k also I’m 21 and by the time I retire the age will be 75 to 80 lol. Would it not be better to put the money you earn into property,gold,coins,jewellery,land,ect as a form of investment 

a pension is income at the end of the day, and that is subject to taxation same as you salary, dividends, or any other income. Pensions are still far more tax efficient than any other form of investment. Sure you could die 1 year after cashing in your pension but you could quite conceivably live another 40 years too. None of us know when our time is up, you have to go on population averages.

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10 minutes ago, Goldhooked said:

You would only pay tax on any amount above your personal allowance that your pension “pays” you in a tax year.  You certainly won’t pay 20% on the full 75% that remains after the tax free 25%.

Get some recommendations from friends and family for an independent financial adviser and see if they will have a free chat with you about it.  Might be the best conversation you ever have.  Older you might thank you.

The personal allowance is I think £11,850 so take that away from the 75% and would you have to pay 20% on that?

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11 minutes ago, vand said:

a pension is income at the end of the day, and that is subject to taxation same as you salary, dividends, or any other income. Pensions are still far more tax efficient than any other form of investment. Sure you could die 1 year after cashing in your pension but you could quite conceivably live another 40 years too. None of us know when our time is up, you have to go on population averages.

That’s why gold is king lol you don’t have to pay vat or CGT on gold sovs

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Just now, Platinumskies said:

The personal allowance is I think £11,850 so take that away from the 75% and would you have to pay 20% on that?

You have to look at in on an annual basis.  If you drew out £11850 (or equivalent, as it will rise) each year and you had no other income, then you wouldn’t pay any tax at all.

it really does sound like you would benefit from having a chat with a professional adviser.

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1 hour ago, Platinumskies said:

 ... I’m 21 and by the time I retire the age will be 75 to 80 lol. Would it not be better to put the money you earn into property,gold,coins,jewellery,land,ect as a form of investment 

If you're 21 and do things right you'll be able to retire well before 75.  By all means invest in those other things, but get some proper info and advise on pension because its the best form of saving - the government essentially pay you to save. 

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Hi guys, 

I’m a Diploma qualified financial adviser and all of the great tax relief is “true” but it all boils down to the Govt in charge at any one time.

I did a YouTube Video probably 3 years ago about Hungary. It was in January I think. Anyway, the mainstream media didn’t report it, only Euronews on Sky! 

So, in Hungary they bailed-in everyone’s Private pension schemes because there was a state pension crisis and the Govt was struggling to pay State pensions.

This article is a little out of date but most governments are “at it” -  https://www.rosaltmann.com/Polishpensionconfiscation22Feb2014docx/

Hungary did it again years later!

The UK government could pull this stroke at any time! 

I’m enrolled in my company pension an have done so in the past but property and gold are my main retirement investments. It’s harder to confiscate but still not impossible I suppose.

There is a good reason I’m not advising on Pensions and Investments anymore guys. I only help people save money on mortgages and protect their familie nowadays, I can’t continue the B.S!!!  

I’ve woken up. Companies are over valued and bonds are too. The whole system is a Ponzi scheme. It’s debt based and we need to have assets outside in case things go belly up!

So I’m not saying don’t have a pension or an ISA etc but know it’s all traceable and could be nationalised without notice. If they did it to you what would / could you do???? If Corbyn gets in power I can see this happening in the first 4 years.

By the way, I’ve been taking and re-taking Chartered Insurance Institute exams since 1999 and at no point do they mention gold and real money. I feel I was professionally brainwashed by the financial institutions behind the CII. These are the financial advisers telling you about the tax relief on pensions. If it sounds too good to be true it usually is!!!!

The fact that all central banks hold gold, it proves its value and at the  best of the day it’s how a currency is valued no matter what they tell you. Look at Venezuela looking to put some gold behind their currency again to stabilise it. 

Mark Twain said something like. You should be more concerned about the return OF your capital rather than the return ON your capital. 

Paper investments are exactly that. It looks good on paper.

Decus et tutamen (an ornament and a safeguard)

YouTube - https://www.youtube.com/channel/UC5OjxoCIsDbMgx7MM_l4CmA

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My plan is to add enough to my SIPP to take it all out as 25% tax free lump and then the personal allowance each year until my work pension is due. This means I should be able to take it all out tax free as I can not take my work pension until the state pension age - stupid rule but there is nothing I can do about it!

I will also start selling off my very numismatic coins at that point as I will also not have to worry about capital gains tax (probably £3K+ profit per year), this coupled with non-ISA dividends of £2K and interest of £1K means I will have enough to live on at £18K per year, any other income will be from an ISA so it will all be tax free. 

Assumes all the rules don't change - fat chance but you have to start somewhere!

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31 minutes ago, SilverTanner said:

My plan is to add enough to my SIPP to take it all out as 25% tax free lump and then the personal allowance each year until my work pension is due. This means I should be able to take it all out tax free as I can not take my work pension until the state pension age - stupid rule but there is nothing I can do about it!

I will also start selling off my very numismatic coins at that point as I will also not have to worry about capital gains tax (probably £3K+ profit per year), this coupled with non-ISA dividends of £2K and interest of £1K means I will have enough to live on at £18K per year, any other income will be from an ISA so it will all be tax free. 

Assumes all the rules don't change - fat chance but you have to start somewhere!

A very good plan!

Decus et tutamen (an ornament and a safeguard)

YouTube - https://www.youtube.com/channel/UC5OjxoCIsDbMgx7MM_l4CmA

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1 minute ago, reidpj said:

Keep in mind that annuity and unit rates rates go up and down - so you may have to postpone your chosen retirement date depending on the prevailing economic situation.......

Good point!

You would normally start moving out of stocks etc 10 years prior to retirement and gradually get it into cash. Unless you wanted to stay partially invested into retirement but that’s risky in itself. 

Decus et tutamen (an ornament and a safeguard)

YouTube - https://www.youtube.com/channel/UC5OjxoCIsDbMgx7MM_l4CmA

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Platinum mentions concerns about companies going bust. I think that’s a valid concern if your pension is promised by your employer. Look at BHS, British steel and countless others. Mine is through a platform provider that spread the funds through various funds across the world. If the provider goes under the shares are still held in my name, the provider is the middle man...but take their cut obviously ? 

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16 minutes ago, Elements said:

Platinum mentions concerns about companies going bust. I think that’s a valid concern if your pension is promised by your employer. Look at BHS, British steel and countless others. Mine is through a platform provider that spread the funds through various funds across the world. If the provider goes under the shares are still held in my name, the provider is the middle man...but take their cut obviously ? 

Yes another great point. 

You can get a specialist pension adviser to obtain a cash transfer value from your company pension administrator and transfer it out of a defined benefit pension scheme and into your own personal pension pot. 

I’m doing this myself now. Although you will lose guaranteed rates you have to ask yourself, who’s it guaranteed by? 

Even if the adviser says it’s bad advice, you can insist but make sure you aren’t conned by dodgy pension transfer companies who run off with your pension transfer pot.

Here is some good info from the pensions regulator: http://www.thepensionsregulator.gov.uk/docs/pension-scams-booklet-members.pdf

If they are from an FCA regulated firm you should be ok. 

Decus et tutamen (an ornament and a safeguard)

YouTube - https://www.youtube.com/channel/UC5OjxoCIsDbMgx7MM_l4CmA

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25 minutes ago, MancunianStacker said:

 

You can get a specialist pension adviser to obtain a cash transfer value from your company pension administrator and transfer it out of a defined benefit pension scheme and into your own personal pension pot. 

I’m doing this myself now. Although you will lose guaranteed rates you have to ask yourself, who’s it guaranteed by? 

Even if the adviser says it’s bad advice, you can insist but make sure you aren’t conned by dodgy pension transfer companies who run off with your pension transfer pot.

Just completed this myself.  I had a DB pension from a company I used to work for and the transfer value was too good to turn down.

The advice I received was to go ahead with the transfer as I will likely have income from property as well, so I can manage the draw downs to minimise tax.

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5 hours ago, MancunianStacker said:

Yes another great point. 

You can get a specialist pension adviser to obtain a cash transfer value from your company pension administrator and transfer it out of a defined benefit pension scheme and into your own personal pension pot. 

I’m doing this myself now. Although you will lose guaranteed rates you have to ask yourself, who’s it guaranteed by? 

Even if the adviser says it’s bad advice, you can insist but make sure you aren’t conned by dodgy pension transfer companies who run off with your pension transfer pot.

Here is some good info from the pensions regulator: http://www.thepensionsregulator.gov.uk/docs/pension-scams-booklet-members.pdf

If they are from an FCA regulated firm you should be ok. 

I’ll pm you

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