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Stop paying into pension ("for now")?
Comments
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I'm thinking of stopping my final salary pension
Why?so in the current economic climate would the advice be the same?
There is no "current economic climate" that would give any reason to withdraw from the scheme.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I despair. I totally despair.0
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Why?
There is no "current economic climate" that would give any reason to withdraw from the scheme.
I'm also thinking about reducing or maybe quitting my pension my contributions each month, due to the current economic climate.
Basically I'm paying about £100 a month into a pension scheme, I have very limited savings and the only debt is the loan i took for my car - which i have almost paid off!
I want to buy a house, and without savings, I don't currently have a deposit.
My way of looking at it is that that £100 a month will be providing me with a better future if it goes towards a deposit for a house instead of into my pension scheme. As soon as I get the house, I will start the pension contributions againWeight loss challenge, lose 15lb in 6 weeks before Christmas.0 -
sitting here at 64 I can only agree with all the advice you have been given. If you don't accept it you could be very sorry in 30 years time.
When I was your age and we had children we used to have days out rather than go away for a holiday. It's your time your children really want, they wont care if you play with them in the back garden or the beach, especially no a hot sunny beach where they will just fry and be miserable. Kids change your life, accept it.The only thing that is constant is change.0 -
My way of looking at it is that that £100 a month will be providing me with a better future if it goes towards a deposit for a house instead of into my pension scheme. As soon as I get the house, I will start the pension contributions again
If you cant afford to put £100 into a pension and save then there is probably a bigger problem with your finances that wont be helped by stopping the pension.
Is there an employer contribution?
If taken from your payslip remember that £100 stopped wont be £100 extra in your pocket.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
One of the problems with taking a pension holiday is, 'cos other things always come up, you keep putting off re-joining.Liverpool is one of the wonders of Britain,
What it may grow to in time, I know not what.
Daniel Defoe: 1725.
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im 27 and have no private pension. i invest all my spare money in a protfolio of my choosing, yes its after tax, yes there are no employer contributions but its nearly at 20k after only 2 years saving and growing. modern-day pensions are questionable.Target Savings by end 2009: 20,000
current savings: 20,500 (target hit yippee!)
Debts: 8000 (student loan so doesnt count)
new target savings by Feb 2010: 30,0000 -
im 27 and have no private pension. i invest all my spare money in a protfolio of my choosing, yes its after tax, yes there are no employer contributions but its nearly at 20k after only 2 years saving and growing. modern-day pensions are questionable.
So bascially you are comparing cars and petrol and trying to make out they are the same thing. A portfolio can be held unwrapped or wrapped in a tax wrapper. Nothing stops you holding a portfolio in ISAs or pensions. They have the same investment options.
The pension tax wrapper may not be the best for all but you would be daft to eliminate it on the basis of not understanding what it actually does.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
At 33 and higher-rate taxpayer I wouldn't even think about stopping pension payments as the OP is considering. Have one less takeaway a week instead.0
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oops - just noticed this thread is almost 2 years old !0
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