Pensions Planning

[Cooperman]

I remember several PS chums commenting that they didn’t pay enough attention to the topic of pensions.

Martin Lewis did a good piece on it (ITV at 8pm), go back and watch it if you missed it and are interested to learn more. The link below is also worth a read, but the programme covers this in much more detail. It’s never too late to plan for retirement and the right decisions now can make your money work harder for you. I like the way Martin presents the topic, his jargon busting approach strips away the cloudiness that sometimes comes with other pensions related material.

Pension need-to-knows

Our pension guide explains the system & rules that apply to your retirement including a run-down on auto-enrolment with Money Saving Expert

www.moneysavingexpert.com

 

[Robbie]

Normal Will statement is Leave it All to the kids as of now and penned .

50/50 split both ways , they will get my hard earned over my working life , fair enough .

Too late for now to follow the clip , will catch up later , but thanks .

Question will be is this awful Government going to hit me with a 40% tax deduction for their gains .

New mattress from Beds on Line Tomorrow .

 

[Pegojack]

I developed an interest in dealing in stocks and shares in my early twenties and did it throughout my working life. I would advise any young working person to do the same now, although I recognise the massive financial pressures people are under.

Just try and put a few quid aside now and again, deal through a low cost online broker like mine (Degiro), and buy low risk, dividend producing shares like the dozens of solid investment trust companies. Your wealth will gradually snowball as you reinvest dividends.

 

[Cooperman]

I developed an interest in dealing in stocks and shares in my early twenties and did it throughout my working life. I would advise any young working person to do the same now, although I recognise the massive financial pressures people are under.

Just try and put a few quid aside now and again, deal through a low cost online broker like mine (Degiro), and buy low risk, dividend producing shares like the dozens of solid investment trust companies. Your wealth will gradually snowball as you reinvest dividends.

This would be worthy of a separate thread as it’s a topic with multiple ways of achieving financial gain, has varying levels of risk which must be considered and can give you the control (as opposed to using an IFA). I have used Hargreaves Lansdown for many years and it’s been a seamless process.

 

[monmouth]

Yep. DO. IT. EARLY. Or be prepared to pay in triple or more.

Pego is also spot on about the magic of compounding.

Coops, your unintended financial advice on here one year has made me about 30k so far (L&G and Rathbone). So keep posting . Like you though I'm not licenced so that's not advice, it's just a fact. It'll go down soon enough!

edit. I use HL and Fidelity. Fidelity Special Sits has been incredible for me. Again, not advice, just experience.

 

[Cooperman]

Yep. DO. IT. EARLY. Or be prepared to pay in triple or more.

Pego is also spot on about the magic of compounding.

Coops, your unintended financial advice on here one year has made me about 30k so far (L&G and Rathbone). So keep posting . Like you though I'm not licenced so that's not advice, it's just a fact. It'll go down soon enough!

edit. I use HL and Fidelity. Fidelity Special Sits has been incredible for me. Again, not advice, just experience.

Unintended, absolutely. I don’t remember the thread to be honest. Rathbone has been a bit limp in comparison to some others, it took a bit of a dive in 1H22 and recovery has been quite shallow. It is being outpaced by Fidelity Global Tech by some stretch. But great to hear that you got in and have seen some benefit.

Note: the value of your investments can go up as well as down.

 

[rockinj]

I developed an interest in dealing in stocks and shares in my early twenties and did it throughout my working life. I would advise any young working person to do the same now, although I recognise the massive financial pressures people are under.

Just try and put a few quid aside now and again, deal through a low cost online broker like mine (Degiro), and buy low risk, dividend producing shares like the dozens of solid investment trust companies. Your wealth will gradually snowball as you reinvest dividends.

Isn’t this the problem with a lot of people now? They’re skint and they spend on utter shit not putting money into saving/investing for long term.

You’re right compounding over time you’ll make money if you’re savvy or invest in trackers if you don’t have a clue.

Live within your means and always put money away.

 

[Cooperman]

Isn’t this the problem with a lot of people now? They’re skint and they spend on utter shit not putting money into saving/investing for long term.

You’re right compounding over time you’ll make money if you’re savvy or invest in trackers if you don’t have a clue.

Live within your means and always put money away.

Salary sacrifice is a huge player here. It siphons off the money before it gets into hand and provides a significant tax break.

 

[Pentyrchjack]

I pay as much as possible into a private pension to benefit from the tax break which I then reinvest back in. I have paid into a pension since 21 years of age but switched a few times and have different schemes (3 are frozen). I got savvy in my mid forties but wish I had been more switched on in my early 20s.

Pension and financial planning should be part of the GCSE curriculum, along with road safety and Internet safety.

 

[waynekerr55]

Normal Will statement is Leave it All to the kids as of now and penned .

50/50 split both ways , they will get my hard earned over my working life , fair enough .

Too late for now to follow the clip , will catch up later , but thanks .

Question will be is this awful Government going to hit me with a 40% tax deduction for their gains .

New mattress from Beds on Line Tomorrow .

You must be rolling in dough if you're going to get whacked for 40% inheritance tax.

 

[Epaul]

Think I'm ok pension wise, my civil service one is due out in 2 and a half years. for 20 years I get a 40k odd lumper plus around 1200 a month(plus my monthly wage, so quite a bit coming in) and then when I retire at 67 which is what I want I get similar with working for the council as I pay extra into that pension, I'm fairly happy with this

 

[Cooperman]

Think I'm ok pension wise, my civil service one is due out in 2 and a half years. for 20 years I get a 40k odd lumper plus around 1200 a month(plus my monthly wage, so quite a bit coming in) and then when I retire at 67 which is what I want I get similar with working for the council as I pay extra into that pension, I'm fairly happy with this

Just be aware of income tax, Paul. That civil service income will basically chew up all of your personal allowance (which is about £12.5k these days), so by default you will be paying tax on the £1200.

 

[Squarebear]

I reckon Martin Lewis' piece about taking 25% tax free then lumping the rest into annuity/drawdown might've got a few folks excited.

And another nod for compounding. I didn't seriously pay into a pension until I was well into my forties, reeling from a brutal divorce settlement. I *think* I'll be alright, which I never in all honesty dreamt I'd ever be in a position to say.

 

[monmouth]

Future medical and care cost is the real arse clencher these days, he says cheerfully.

 

[Cooperman]

I reckon Martin Lewis' piece about taking 25% tax free then lumping the rest into annuity/drawdown might've got a few folks excited.

And another nod for compounding. I didn't seriously pay into a pension until I was well into my forties, reeling from a brutal divorce settlement. I *think* I'll be alright, which I never in all honesty dreamt I'd ever be in a position to say.

A message to all - be very careful with the annuity route. Once you’re gone, it’s gone. Whereas the drawdown route sees any balance passed to named beneficiaries.