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MSE News: Pensions shake-up 'to help half a million by Christmas'
Former_MSE_Darryl
Posts: 210 Forumite
"About 500,000 people will save into a pension for the first time by Christmas due to auto-enrolment, the Government says..."
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Comments
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I thought this 'idea' had been put back?
When does it come into action for companies < 50 employeesYear 2019 (1,700/£17000mortgage repayment)Overall mortgage (71,400/165568) (44
.1%) (42/100) payments made. Total paid 2019 year £1,700
Total paid 2017 year £15,300Total paid 2018 year £13,6000 -
People are finding it hard to live in the now let alone worrying about the future, we struggle to pay a pension that we know will be less than was predicted when we took it out, the companies involved have screwed people by withdrawing with profits plans and moving them to a cheaper for them pension fund and so now we are going to be in the mire when we retire :mad:Blessed are the cracked for they are the ones that let in the light
C.R.A.P R.O.L.L.Z. Member #35 Butterfly Brain + OH - Foraging Fixers
Not Buying it 2015!0 -
runninglea wrote: »I thought this 'idea' had been put back?
When does it come into action for companies < 50 employees
Around mid 20140 -
Meanwhile, annunity rates worsen further
http://www.ft.com/cms/s/0/5e43ca96-fd85-11e1-8e36-00144feabdc0.html#axzz271CYGWvm
:cool:0 -
http://www.moneymarketing.co.uk/pensions/pru-issues-warning-over-auto-enrol-opt-out-advice/1058046.articleIFAs will need to seek approval from a pension transfer specialist if they want to advise a client not to be automatically enrolled into their employer’s GPP.
Under current rules, any advice to opt out from an occupational scheme or transfer from an occupational scheme to a personal pension has to be approved by a pension transfer specialist.
As a result of auto-enrolment, this requirement will be extended to include group personal pension arrangements. This means if an adviser thinks it is in a client’s best interests to be auto-enrolled into an alternative pension to the one offered by their employer, they will need a transfer specialist to sign off the decision.
...
Prudential head of product and sales technical Matthew Stephens says: ...
“We think this could become an issue because auto-enrolment is so vast. If the adviser thinks there is a better scheme out there and the employer is happy to pay contributions into any scheme on the market, the adviser will need to get sign off from a specialist to move the client’s money.”0 -
Between 2015 and 2017 depending on the exact detailsrunninglea wrote: »I thought this 'idea' had been put back?
When does it come into action for companies < 50 employees
http://www.thepensionsregulator.gov.uk/employers/staging-date-timeline.aspx0 -
Thinking out loud, but if the government can introduce ISAs for children, why not for retirement?
I.e. an investment account with tax benefits that prevent those paying in to them from withdrawing the funds until retirement?
People could keep hold of their investments and draw them down/buy an annuity with them as they see fit, but they wouldn't be tempted to take the money early.
Not convinced that the current choices of annuity or drawdown (dependant on GAD figures) suit many with smaller pension pots?0 -
edinburgher wrote: »Thinking out loud, but if the government can introduce ISAs for children, why not for retirement?
I.e. an investment account with tax benefits that prevent those paying in to them from withdrawing the funds until retirement?
People could keep hold of their investments and draw them down/buy an annuity with them as they see fit, but they wouldn't be tempted to take the money early.
Not convinced that the current choices of annuity or drawdown (dependant on GAD figures) suit many with smaller pension pots?
These now exist, there is no longer an obligation to purchase an annuity and funds can be drawn directly from the pension pot.
Hope this helps0 -
The pension system is designed to dangle tax relief in front of you, but make it forever out of reach.
They say you pay £80, and they put in £20, but £5 is swallowed by fees and commission every year, if you are lucky: could be £10. So only £95 is invested. Let's say £95 a year over 40 years grows into £9,500, and you can take £2,500 lump sum. The remaining £7,000 is given to you at £400 a year, so you will have to live 18 years to get it. If you are not lucky, the £400 is potentially subject to tax.
If you just kept the £80, invested it in an ISA, which has similar tax free properties, with £5 in fees, so £75 is invested. After 40 years, you have £7,500 , but it's all tax free, and you can do what you want with it.
Forcing you down the pension route is just the government offloading a liability. It's nothing about helping you with your life choices.
They don't want to pay to keep me in a home: I don't want to die in an old folk's home EITHER!
I would like a cremation by being hurled into the sun.
Please develop a linear accelerator for shooting payload into space. Ideally, I would like my coffin/capsule go above the ecliptic plane, do a decaying spiral orbit, then plunge into the sun.
If there's not enough money for the solar cremation, at least put my ashes in a pressurised bag, which can be expelled from a space vehicle, and scatter me into outer space.0 -
The pension system is designed to dangle tax relief in front of you, but make it forever out of reach.
They say you pay £80, and they put in £20, but £5 is swallowed by fees and commission every year, if you are lucky: could be £10.
My pension scheme charges 0.5% per year management charge so, for a £100 investment, it's 50p in charges.
So only £95 is invested. Let's say £95 a year over 40 years grows into £9,500, and you can take £2,500 lump sum.
The best way to work out growth is to estimate a growth rate, say 7%, then detuct your annual charges of 0.5% and then detuct an estimated inflation rate, say 2%. This gives a growth rate of 4.5% in real terms with pretty conservative growth estimates. The £100 per year over a 45 year working life grows to £14,500 in todays money. At a 6% annuity rate, that gives you £870 per year for the rest of your life.
The remaining £7,500 is given to you at £400 a year, so you will have to live 18 years to get it.
It'd take almost 17 years to get my £14,500 figure back. However, it'd take just over 5 to get my £4,500 CONTRIBUTIONS back. (and that's contributions BEFORE tax relief)
If you are not lucky, the £400 is potentially subject to tax.
I really hope I am paying tax on some of my income when I retire as it means I'm earning enough to life comfortably.
My pension plans include a single rental property which will be paid off by the age of 55, having my mortgage on my own home paid off (thus reducing my income needs) and a private pension.
If you assume that the average person spends about 30% of their income on mortgage/rent (which is pretty conservative), my income requirements will drop to 70% of my salary when my mortgage is paid off. The rental property will give me about 30% of my salaried income and the remaining 40% needs to come from my private pension.
One must remember though that money saved by not having a mortgage may be diverted towards other expenses such as healthcare. It's all to do with sensible planning as opposed to mouthing off about the government.0
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