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UK pensions


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11 minutes ago, Platinumskies said:

Silver tanner mentioned he would get 18k a year but what happens if he dies when he’s receiving his pension 

Fortunately the assets to give the £18K per year can be inherited in full, the SIPP will run outbut the others will not. My work pension when that starts has provision for spouse and kids included. If I die whilst employed my family will be very well off - something my wife does remind me of!

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25 minutes ago, SilverTanner said:

Fortunately the assets to give the £18K per year can be inherited in full, the SIPP will run outbut the others will not. My work pension when that starts has provision for spouse and kids included. If I die whilst employed my family will be very well off - something my wife does remind me of!

But with your work place pension will your family get a reduced rate of pension and for how long also what is SIPP also would your family be able to withdraw the money all at once out of you work pension 

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Hi @Platinumskies i think all of the above points are pretty valid. Basically i would always look into some sort of pension but that could be anything from spending the next 40years accumilating PMs to long term ISA to property to company/private pensions. Whatever you do just dont put all your eggs into 1 basket and if your smart youl have a finger in each of these pies and more! As long as your doing SOMETHING its better than doing NOTHING.

Im 28 and im mostly invested into property with a BTL Portfolio which currently pays more than most pensions. When i started it was with a view to being financially independent from work as i am also self employed but now i see it as my pension. I’ve started putting property earnings into PMs and long term ISAs but dont have a “pension” to speak off yet but im going to set up a private pension aswel once I’ve taken some financial advice on the best option.

I think you just need to balance everything best you can including living a bit for now - if you cant do that in your 20s then when can you!

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2 hours ago, Platinumskies said:

But with your work place pension will your family get a reduced rate of pension and for how long also what is SIPP also would your family be able to withdraw the money all at once out of you work pension 

Work pension will be reduced a bit when I am gone but last until my wife is gone. Fortunately the difference will be more than made up from other sources which only come into play when I am gone.

SIPP is a Self Invested Personal Pension which I started a few years ago in addition to my work pension because of the state pension age requirement for my work pension. How fast this grows will determine how many years 'early' I can retire. I started thinking this would be 2 years and then it became 5, a good run and I may make 7 or 8 years! Although anything above 5 now means coins or income producing assets. I know it should all be the latter but I feel the stock markets are very high and fortunately it is cheap up north?

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The risk of private pensions being nationalised is never 0%, but I personally think it's close to this. The UK is not Poland, Argentina or other traditionally socialist countries; in the UK as much as any other country the institution of private property is something that is upheld. Even Corbyn and old Labour understand this, any attempt to change it would not be tolerated, and it would not be an exaggeration to say that it would end the UK's position as a financial centre if the trample of their own citizens' property rights, what foreign business would dream of setting up shop here. Even Corbyn isn't that stupid.

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21 hours ago, vand said:

The risk of private pensions being nationalised is never 0%, but I personally think it's close to this. The UK is not Poland, Argentina or other traditionally socialist countries; in the UK as much as any other country the institution of private property is something that is upheld. Even Corbyn and old Labour understand this, any attempt to change it would not be tolerated, and it would not be an exaggeration to say that it would end the UK's position as a financial centre if the trample of their own citizens' property rights, what foreign business would dream of setting up shop here. Even Corbyn isn't that stupid.

Ahhh yes, but "Would not be tolerated" by who?

Take the increases in retirement ages from 65 upwards to now 66+ for men and the women (WASPI) whose pension age was upped from 60 to 65 after years and years of paying in thinking they would be pensioned at 60! Thats approx £30k robbed off each woman, didnt see any massive disturbances about that.

When push comes to shove uk.gov couldnt care less. After all, gotta spend £billions geting  from Manchester to London 20mins quicker or whatever it is...

Why cant pension contributions be taxed now (when we could afford it) and fully tax free when we retire and need every penny we can get?

Like a previous post commented its all about who is in Gov.....

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  • 2 months later...

I'm considering doing something rather drastic and putting up to 2/3rds of my salary into my pension over tax year 2019-2020.

Over the last couple of years I have sourced another income stream.. I currently make from this than my regular employment, so weekly/monthly cashflow is already hugely positive. At the moment I'm using it to pay off my mortgage early, but that will be done within a few month. After this it will be a case of finding the best place to park my money.

The salary calculator https://listentotaxman.com tells me that if I put 2/3rds or more of my salary into the my pension, I will pay 0% income tax, the only tax I will pay will be NI, for a total rate of 9.8% on my income from my day job.

I could already live comfortably off my 2nd income.. which rather beautifully also happens to be completely tax free as its from gambling related activity. This would put my own personal rate of tax on all income in the low single digits... a level that would make even Amazon blush.

If nothing else it would be interesting to see peoples' faces at dinner parties when I say I don't pay any income tax.

 

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  • 2 weeks later...
On 18/08/2018 at 11:39, 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.......

Compulsory annuitisation has now been abolished.  This means that is you have a pot of money at retirement, you can leave it invested and just drawdown against it each year.  

Annuities are typically invested in a mix of Rates (gilts), Bonds and private debt/infrastructure (more illiquid type assets)

I think about my retirement income as coming from a number of discreet pots, eg ISAs, SIPP,  Defined Benefit, VCTs etc.

If you don’t purchase an annuity an you die 1 year in, your pension pot goes to your estate.  If you have bought an annuity, it goes to the insurance company, that’s just how they work. 

FINAL POINT - If you have transferred out of a DB scheme and an advisor is managing your fund, take an interest in what they are doing with it.  Make sure it is spread around, in approved unit trusts/OEICS/Investment Trusts etc.  I am currently dealing with a situation, where the mother of one of the staff that works for my company had their entire pension post defrauded by a bent IFA

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I bought my 216th Sovereign today (cheers gazer!)

1 sovereign a month as a pension top-up should last me 18 years 😊

Technically, alcohol is a solution..

'It [socialism] poses a growing threat, however unintentional, to the freedom of this country, for there is no freedom where the State totally controls the economy. Personal freedom and economic freedom are indivisible. You can’t have one without the other. You can’t lose one without losing the other.'

"There is no such thing as public money, there is only taxpayers' money"

Let not England forget her precedence of teaching nations how to live.

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On 12/11/2018 at 12:08, vand said:

 

I could already live comfortably off my 2nd income.. which rather beautifully also happens to be completely tax free as its from gambling related activity. 

 

Nice...

Did you once do a thread on this ? I think i remember seeing something along these lines

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