Pensions

[shabbashaz]

Just wondering if they are worth putting into. I'll be 35 this year and i have the option to pay into the company one. They match what i pay. The thing is the retirement age will increase and i reckon i'll still be working by the time, my time's up. Which is good for keiron as he'll get 20k.
I just want to know what others think

 

[IJN]

Don't even think about it, do it.

I started when I was 23, and I've just pulled mine out at 55.

I pulled out a lovely lump sum (bought a flat on the Hoe) and I pick up a very good 'wage' on the 1st of each month.

Oh, and I'm still working full time.

It might be tight at the start, but if you keep at it, the rewards are worth it.

Ian

 

[irishbrian]

Pensions are worth near nothing. 15 years in same job i'll have nearly 6,000 euro by time I'm 65 . I get the option of a lump sum with my redundancy in 3 weeks and I'm taking it.
There are actually guys in my work who won't and want to hang onto it till they are 65, for the sake of a couple of thousand!

 

[angelic upstart]

I concur, do it provided they pay in. If they don't make alternative arrangements.

Where on the hoe Porks? I used to live on Holyrood place. Nearly bought a 2 bed place there for 120k at the time. I didn't like the small kitchen though.

 

[Oli]

Just wondering if they are worth putting into. I'll be 35 this year and i have the option to pay into the company one. They match what i pay. The thing is the retirement age will increase and i reckon i'll still be working by the time, my time's up. Which is good for keiron as he'll get 20k.
I just want to know what others think

Over a long period of time they are of good use. If the company matches you (to a certain %) then it can become a good method. ie if you pay £100 a month, then your company adds £100 and then you get 20% tax relied on £200 added in too making it £250 (assuming I calculated tax relief correctly............).

Therefore £100 turns into £250 immediately. When you are younger you would look to take high risk and then lower the risk profile as you get older.

£250/month = £3k a year. Assume it is 30 years until you retire and you are getting 4% compounded a year then it soon adds up. I don't have excel on my new pc but probably around £200k in the total pot.

On retirement 25% of that can be taken tax free too, so £50k in your hand and the rest would probably give you £6-8k a year, add that to your state pension and away you go. Assuming you have no mortgage and the kids have moved away.

In conclusion it is worth doing, but I would also consider other options, some people go for property.

 

[Mr Jan Yeo]

I'm just about to start paying in and I'm not 25 yet.

The best option is to have a special high interest bank account and just don't touch the money in there...the thing is that people will always dip into it at some point.

 

[LammieLammieLammie]

Shabba, i echo what Ian says.

I have been working for 30 years, and yes, you look at what you could have but every year I get my pension statement and am so glad I paid in.

 

[Hunterwasmyhero]

The best option is to have a special high interest bank account

Tell me where you can find one of these!

 

[CTA]

Definitely worth it if the company matches and you are a taxpayer.

NB Oli's tax relief calc is a bit wrong. YOU would only get relief on the bit that you pay. So in Oli's example you pay £100 + £20 tax relief + £100 from employer = £220.

 

[Oli]

Definitely worth it if the company matches and you are a taxpayer.

NB Oli's tax relief calc is a bit wrong. YOU would only get relief on the bit that you pay. So in Oli's example you pay £100 + £20 tax relief + £100 from employer = £220.

Fair dos, I thought it was on both portions. I think my company matched my amount + my tax relief up to 3% of salary.

As for high interest accounts, depends what you class as high these days.