pensions

[Andy]

Now with the state of pensions at the minute is it worth puttting a lot of money into them and come the time you retire your not entitled to any thing because of your private pension..
I have a scheme at work where we pay half and the comany pays the same but i was thinking of paying more money into it so have   can line comfortable when i retire

[andrewparker]

I'm still counting on winning the lottery at some point.

[Andy]

I'm still counting on winning the lottery at some point.

that is a better idea

[Baz300]

I pay 3% of my wage a month into a pension through work and they match it.

But when the pension company rep explained that if I got a 3% pay rise Every year then my pension would payout just over £1000 a month, but i have only had 2% pay rises the last 2 years and nothing the year before (work uses the recession as the reason for low pay rises but for the last 3 years they keep breaking the sales records for the company)

I don't think £1000 a month will be worth much in 30-40 years when I retire, And I doubt there will be any state pension (even though I have paid into it for the last 17 years)

I have to get on the property ladder very soon so that I can have a mortgage paid off and save like f**k before I retire or I will be proper screwed, the councils have stopped giving houses to British people and there is now way I could pay private rents on a £1000 pension in 30 years time!

On the other hand hopefully I win the lottery by then

[tony_danza]

Pension is a tax break, put as much as you possibly can afford into one because you're going to need it when you're older.

[Eccie]

Pension is a tax break, put as much as you possibly can afford into one because you're going to need it when you're older.

This is correct - if your putting in 3% (before tax) & somebody else is putting in another 3% it's a no brainier, do it.
If you don't put in now, don't come on here in 35 years time moaning you can't afford to buy an electric GTi or pay your electric bill (because it'll cost about the same)

I wish somebody would double my cash ISA every time I buy one, each year

[garrardrj]

Pensions with private companies are always going to be a risk. I pay 13.7% of my pay now and have paid 11% of my pay into my Pension . Its also index linked to cpi used to be rpi.
I would pay your maximum ISA allowance every year into a cash isa , this money will always earn you tax free income when you retire. I think at the moment ISA rates are low as the Bank of England is letting banks have money fairly cheaply and bank have not had to offer good rates to savers to give them their money . As things get better i believe these rates will rise and also the Govt will want to encourage people to invest in their pension/future more as they will not be able to afford to pay a decent pension.
Paying money into a pension pot at the moment means on maturity you have to buy an Annuity . It gives your money away to another private company who then pay you an amount for the rest of your life . This i think is also dangerous as it is with a company which could go bust .
Property has always seen to be a good investment and in London is still is . I would not say it is elsewhere but who knows.
Planning for the future is a nightmare . I have done 30 years in a job i thought i would never do as a youngster just to get a good pension ! The job turned out better than i had imagined too .
Another thing i didn't know is that if you are paid a pension you don't have to pay National Insurance contributions on it whatever age you receive it. Thats increased my monthly amount by 10% ish

If you speak to 100 people you will get 100 different answers !

[Kregiel]

saving for the retirement is always a good idea!

However no matter how much you pay your standard of living as a pensioner will never be the same as when you work.

Usually pension is ca 30-40% of your salary in most european countries....

Best to keep a balance and enjoy your life while saving at the same time

If you save plenty now you might not get enjoyment from life. If you spend all now you might regret it once you retire

There is no right or wrong answer now as it's very subjective

Paul

[sub39h]

All my spare cash is going towards rental properties, that hopefully should have paid themselves off by the time I retire. They can either provide a stable income when I retire, or be sold for lump sums for kids' weddings etc. when needed.

My logic is that under new NHS pension rules I'll have to pay way more anyway, and it's only going to get worse. On that basis I've already withdrawn. Might as well pay as much as I want as often as I want and get a better outcome.

[Tortaruga]

I met a pension top-up firm and the lass asked me whether I really believed the state pension would be available to me when I retire. I had to agree that it will most likely be means tested in the not too distant future.

People are living too long nowadays and the Government won't be able to afford a state pension for everyone.

[garrardrj]

All my spare cash is going towards rental properties, that hopefully should have paid themselves off by the time I retire. They can either provide a stable income when I retire, or be sold for lump sums for kids' weddings etc. when needed.

My logic is that under new NHS pension rules I'll have to pay way more anyway, and it's only going to get worse. On that basis I've already withdrawn. Might as well pay as much as I want as often as I want and get a better outcome.

I doubt you can beat a NHS pension , its similar to mine and anything private cannot come close . You don't get tax relief on buy to lets either , but as i said earlier "ask 100 people get 100 answers"

[sub39h]

under current rules, no you can't beat it. but it was changed once during my time at uni, and now it's been changed twice since i graduated in 2010. i've got a minimum of 40 years of service to the NHS left before i'll retire with a full pension, which is also likely to increase to 45 years by the time i get there. for me, it's not worth it in the long run. every time there's a dip in the economy, we'll get shafted, but when it picks up again the rules won't change to benefit us. much rather put my money aside into something that's more definite. markets can collapse, demographics can change, pension companies can go bust. but bricks and mortar will always be worth something, and in the long term will always be a good investment on our overcrowded little island. 

[Frodo-anni]

Pension is a tax break, put as much as you possibly can afford into one because you're going to need it when you're older.

+1 

If you have a company willing to pay into a pension also then take it, if you say no thanks they are not going to just give you it.

I pay 3% of salary at present and work pay in 7% into my pension and as i get older it increases. At 34, i will pay 4%, work 8%.

Had the girlfriend and future sister in law accept their employer offers, as by the time i reach state retirement age which is now 68 for me, (born 82), who knows what will be left if at all. I personally do not want to be working until im 68 to rely on a state pension that may not exist.

Something for the future - you may also look to pay additional amounts in, as and when you have pay rises. If i were to contribute an extra 1% of salary it would make approx £1800 p/yr difference in pension pay come 60.

Other options as above are rental properties, friend has 4 already at 32, so he is doing well, but if what ever reason they become empty make sure all costs can be covered by yourself.

[Tfsi_Mike]

It's becoming time for me to think far more seriously about the future.

My pension is being screwed with this year (not in my favour obviously)

[rich83]

My life plan...

Keep working... don't retire.... then snuff it.