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Hello knoweldgable folk!

I'm pretty new to the forum and have just started my stacking journey. For the same reasons I'm now stacking PMs, I'm looking at my pension arrangements (which I'm roughly 20 years from).

I've been hunting down some of the old forum posts on personal investments and I have found lots of interesting tid-bits, but alas, they tend to assume at least some prior knowledge. I'm ashamed to say that I know next to nothing about pension arrangements, though I am keen to rapidly change that.

I do have a pension from my ex-workplace that I paid into for 20 years, so I know there's that. But I've not made any pension contributions at all for that last 6 years and I'm keen to start again. But I've nevver held my own voluntary pension so don't know where to start.

Of course, I'm doing some external research, googling like a mad-man etc. But, just like learning how to play Monopoly, it's easier to hear from someone who knows how to play, than it is trying to read the rule book cover to cover.

I know that @Stacktastic has commented on ISAs and @Pete quite extensively on SIPPs previously and I hope you don't mind me tagging you. (I was a hairs-breadth from private messaging you but I thought may have been creepy, so here we are in public). So please let me know if there's any basics that can be shared, or links to useful resources (impartial advice, not beholden to selling me a sepcific product or fund etc).

Honestly, I don't even know if pension contributions are the correct vvehicle. What's the benefit of a pension over any other form of investment?

Thanks in advance. As I say, I'm not trying to outsource my own thinking, just to shortcut to the good stuff. Hope that makes sense.

 

FNF.

 

Looking for 1oz silver Somali Elephants (pre-2015) to complete date run. Must be good condition.

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6 minutes ago, Minimalist said:

Just purchase Gold everytime you get paid until you retire. The end.

Thanks @Minimalist. That's certainly one of the things under consideration when I said, "Honestly, I don't even know if pension contributions are the correct vehicle. What's the benefit of a pension over any other form of investment?"

I assume your advice is dead-serious and not intended for levity. It's certainly one to ponder. But therein lies the 'eggs in one basket' issue - no?

Looking for 1oz silver Somali Elephants (pre-2015) to complete date run. Must be good condition.

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1 minute ago, FourNinesFine said:

I assume your advice is dead-serious and not intended for levity. It's certainly one to ponder. But therein lies the 'eggs in one basket' issue - no?

Dead-serious my friend. You are always safe with just Gold in one basket.

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51 minutes ago, FourNinesFine said:

Hello knoweldgable folk!

I'm pretty new to the forum and have just started my stacking journey. For the same reasons I'm now stacking PMs, I'm looking at my pension arrangements (which I'm roughly 20 years from).

I've been hunting down some of the old forum posts on personal investments and I have found lots of interesting tid-bits, but alas, they tend to assume at least some prior knowledge. I'm ashamed to say that I know next to nothing about pension arrangements, though I am keen to rapidly change that.

I do have a pension from my ex-workplace that I paid into for 20 years, so I know there's that. But I've not made any pension contributions at all for that last 6 years and I'm keen to start again. But I've nevver held my own voluntary pension so don't know where to start.

Of course, I'm doing some external research, googling like a mad-man etc. But, just like learning how to play Monopoly, it's easier to hear from someone who knows how to play, than it is trying to read the rule book cover to cover.

I know that @Stacktastic has commented on ISAs and @Pete quite extensively on SIPPs previously and I hope you don't mind me tagging you. (I was a hairs-breadth from private messaging you but I thought may have been creepy, so here we are in public). So please let me know if there's any basics that can be shared, or links to useful resources (impartial advice, not beholden to selling me a sepcific product or fund etc).

Honestly, I don't even know if pension contributions are the correct vvehicle. What's the benefit of a pension over any other form of investment?

Thanks in advance. As I say, I'm not trying to outsource my own thinking, just to shortcut to the good stuff. Hope that makes sense.

 

FNF.

 

As far as I’m aware, it’s great making any pension contributions, however, you really need your workplace to be making contributions as well to make any real worthwhile difference 

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1 minute ago, Petra said:

As far as I’m aware, it’s great making any pension contributions, however, you really need your workplace to be making contributions as well to make any real worthwhile difference 

That's an interesting one. Doesn't this mean it disadvantages the self-employed?  #askingforafriend  ;)

Looking for 1oz silver Somali Elephants (pre-2015) to complete date run. Must be good condition.

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1 minute ago, FourNinesFine said:

Love it.

With the way things are going pal, Gold is perfect in the next 20 years, unless the Chinese or Russians set the price because the Dollar is toast. 2030 is the biggie imho (so trends are pointing towards).

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Just now, FourNinesFine said:

That's an interesting one. Doesn't this mean it disadvantages the self-employed?  #askingforafriend  ;)

Not really, usually other options, a lot don’t even pay into state pension, just the basic minimum

 

 

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Your pension needs to suit your personal circumstances.

For example, I'm a contractor and I work through an umbrella company so I don't get an employer that pays their pension contributions. I choose to make a salary sacrifice which doesn't accrue any PAYE contributions or NICs. It also reduces the amount of PAYE and NICs on my remaining salary. The salary sacrifice portion is sent to my SIPP where I manage my own pension investments.

This suits my circumstances but it might not yours.

Edited by Booky586
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6 minutes ago, GoldDiggerDave said:

for me the whole idea of having a large pension pot is a crazy prospect, the concept of working all your life giving a 3rd party a load of cash all of your life and then they can tell you how much you can have back per month at 65-68 is odd especially you have to live into your late 80's early 90's to break even what you ploughed in

True, but you can access it at 55 these days!

6 minutes ago, GoldDiggerDave said:

We talk about life span whats that?  70-75 if you are lucky,

What was that game show....HIGHER!!

7 minutes ago, GoldDiggerDave said:

not many people talk about health span, the point in life you are fit healthy and Independent to do what you want, it would be interesting to see what other on here think this is.  40-60?

Absolutely.

8 minutes ago, GoldDiggerDave said:

At the end of the month always pay yourself first. 

Yes.

If I may add, the secret to a happy retirement is *only working if you want to. For some people, they wouldn't know what to do if they didn't get up at 6am and drive 50 miles 😄

You may stop full time work and turn a retirement hobby into a lucrative sideline to supplement your pension, perhaps.

 

*which I think is where @GoldDiggerDave is at 👍

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.'

And I heard a voice in the midst of the four beasts say, 'a measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.'

If the product is free, you are the product.

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2 minutes ago, Roy said:

True, but you can access it at 55 these days!

What was that game show....HIGHER!!

Absolutely.

Yes.

If I may add, the secret to a happy retirement is *only working if you want to. For some people, they wouldn't know what to do if they didn't get up at 6am and drive 50 miles 😄

You may stop full time work and turn a retirement hobby into a lucrative sideline to supplement your pension, perhaps.

 

*which I think is where @GoldDiggerDave is at 👍

Most if not all pension schemes where you can collect at 55 have closed, new entrants to such a scheme have to go to  ‘state retirement age’ which now is a bit of how long is a bit of string. But, if they get there, they will have a decent pension. That’s what you get for being public sector!

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Ah, I'm happy to be corrected. It's an important topic.  

 

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.'

And I heard a voice in the midst of the four beasts say, 'a measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.'

If the product is free, you are the product.

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@Roy good to see you, I'm 45 and have mates 10-15 older than me who got the mother of all pension inflation linked 80% final salary deals but these are a dying breed, I know guys in their 20's and they will never see deals that were once normal for a decent job and will never be able to retire at 55 as they will have high outgoings, 35 year mortgages, likely to have kids still dependant on them well into their early 60's.  

I'm in the middle the widening generation wealth gap and can see both sides, not envious of those who have it miles better than me but I do have almost sympathy for the younger generation who will never get close to the same standard of living as my friends in their 50's and 60s.  

 

Edited by GoldDiggerDave
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55 minutes ago, GoldDiggerDave said:

Hi @FourNinesFine for me the whole idea of having a large pension pot is a crazy prospect, the concept of working all your life giving a 3rd party a load of cash all of your life and then they can tell you how much you can have back per month at 65-68 is odd especially you have to live into your late 80's early 90's to break even what you ploughed in

We talk about life span whats that?  70-75 if you are lucky, but not many people talk about health span, the point in life you are fit healthy and Independent to do what you want, it would be interesting to see what other on here think this is.  40-60?  The whole idea of working your backside off and wishing your live away to get to 68 so you can have  a pot of money sounds made up by the ruling classes to keep us all in check and all turning up at 9:00am on a Monday morning. 

I'm far from saying don't have any plans or savings for the future we are all capable of being the masters of our own future but we are hoodwinked into thinking we need other people or institutions to do this for us.  

At the end of the month always pay yourself first.

Thanks @GoldDiggerDave I agree with all of these principles. I think to a lesser or greater degree, most people would. It's a big part of the reason I even found this forum.

On the other hand, it's difficult to fight the conditioning... "Put something into a pension, you'll need it when you're older".

I suppose I just want my money working for me, rather than the other way around.

2 hours ago, Minimalist said:

Just purchase Gold everytime you get paid until you retire. The end.

Perhaps it just comes down to this one sentence in the end. Not called @Minimalist for nothing, eh?

 

FNF.

Looking for 1oz silver Somali Elephants (pre-2015) to complete date run. Must be good condition.

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1 hour ago, Petra said:

Most if not all pension schemes where you can collect at 55 have closed, new entrants to such a scheme have to go to  ‘state retirement age’ which now is a bit of how long is a bit of string. But, if they get there, they will have a decent pension. That’s what you get for being public sector!

To the best of my knowledge that's not correct, 55 is still the age your can start collecting your pension.

1 hour ago, GoldDiggerDave said:

the concept of working all your life giving a 3rd party a load of cash all of your life and then they can tell you how much you can have back per month at 65-68 is odd especially you have to live into your late 80's early 90's to break even what you ploughed in

With the SIPP I have, you manage all the investments yourself and can withdraw as much, including all, at any point after 55.

All that you invest in a SIPP is your money and you choose how much you take out at any point in you retirement.  Even when you die all the remaining pension value is transferable to you dependants, tax free.

Edited by Booky586
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1 hour ago, GoldDiggerDave said:

We talk about life span whats that?  70-75 if you are lucky, but not many people talk about health span, the point in life you are fit healthy and Independent to do what you want, it would be interesting to see what other on here think this is.  40-60?  The whole idea of working your backside off and wishing your live away to get to 68 so you can have  a pot

I'm 58 years old and was diagnosed with renal cancer 14 years ago. I'm still fit, happy and in employment, and my cancer is monitored. I believe my SIPP perfectly suits my situation. I don't pay tax or NICs on its contributions from my salary and when I decide to retire I can tailor the payments to suit my lifespan.

It's not like a buying an annuity, your are in total control of the finances, all that you pay in comes out to you, or in the case of death, you family.

Edited by Booky586
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@Booky586 everyone is different, the younger generation will find it very difficult if not impossible to retire at 55.  They might get access to the cash but are likely to have large financial obligations like mortgage and children.  
 

We are all from different walks of life and mix in different circles (one thing that’s great about this forum) I have some friends  in their late 40’s and they have told me they can not see any other option except to work all their life, they still have 18 years left on the mortgage and have two offspring at university milking them dry.  At what point do parents cut their kids off? Suppose that would make for another interesting thread. (I’m seeing some offspring financially dependent on their parents into their 30’s) 


I’m no way against any pension or what plans people make as this is their own decision.  From a generational perspective there does seam to be a disparity between    those in their 60’s and those in their 20’s and 30’s.

Keep well

 

 

 

 

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There is a generational disparity and there always was. For those in the 60s upwards, how do you think their parents and grandparents managed?

Everybody thinks things were cheaper and easier years ago … of course they weren’t. Unfortunately right now things are getting worse with a seemingly never ending flexibility of the pension age and the state of jobs and mortgages 

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Any Scots in here, there is no benefit in being in the Union under the Pensions the British are willing to pay - its the lowest in Europe. In a Independent Scotland, Scotland will provide our pensioners with the OECD average. The statutory retirement age CAN be lowered and we are now trailing a 4-day work week.

England doesnt care about Scotland, most English dont want us, Englands representation of voters are committed by a Tory vote.

Pensions will be better in a Independent Scotland.

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@Petra as you can tell this is a trigger for me! Every generation works hard and had their own challenges to deal with.  
 

It’s just well beyond what’s fair and reasonable for most.  Wages in real terms are plummeting, I bought my house on minimum wage and the ratio was 4.7x my income, if I did the same job today the ratio would be 9-10x to buy the same home there are loads of other factors to consider.
 

my dad was a factory worker in the 70’s but it was enough to buy a 3 bed terrace house raise 4 kids and have mum at home.  If I had the same job today I would barely be enough to rent a bed sit impossible to buy a home and raise 4 kids put a figure on this for me if you would not mind, how much would you need to earn today to buy a modest 3 bed terrace  and raise 4 kids on a single wage?  

Incomes are nowhere keeping in line with a fair standard of living……….at this rate I’m going to start my own political party 😂

 

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Just to add some fuel...

It was 3 x my salary, early 80s.

I was watching Mario on YouTube last night, do you know whose fault it is?

Nixon's. Look at what happened to house prices once the US abandoned 'the gold standard'!

Slightly tongue in cheek, but the charts don't lie 👍

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.'

And I heard a voice in the midst of the four beasts say, 'a measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.'

If the product is free, you are the product.

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