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    • adonis10
    • By adonis10 2nd Oct 17, 11:54 AM
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    adonis10
    People in their 30's - future financial plans?
    • #1
    • 2nd Oct 17, 11:54 AM
    People in their 30's - future financial plans? 2nd Oct 17 at 11:54 AM
    Having read a couple of interesting threads this morning ('over 50's how did you accumulate wealth' and 'a couple of questions for those retired') it made me want to get opinions of people in a similar situation to myself. Obviously, we face different financial challenges (worse pensions, less chance of profiting so much from property, automation killing jobs and industries etc.) and so I am keen to understand what people in their 30's* are planning on doing to secure their financial future.


    Personally, I feel that I am well behind what I need to secure a relatively comfortable future, especially given the uncertainty around the state pension which will most likely not exist in 30 years time. Many older people seem to have multiple pensions to call upon but how is this possible? Is it tax efficient? Where is the best place to start?


    My circumstances:
    - Salary is a modest 32k. OH's salary circa 35k.
    - Good workplace pension (e'er contributes 16%, I contribute 13%), OH's is a teacher's pension so I think she is sorted!
    - Relatively low mortgage (144k on a 350k property, which is joint with partner) @2.14% fixed until July 2021.
    - Circa 60k in cash and investments. Relative to my income, I think my cash position is ok (but who knows what will happen work wise so I want to keep this and add to it as much as possible) so I need to think about investment growth now and potentially a private pension, however I do think that this is 2nd choice to maximising S&S ISA contributions.
    - Future inheritance will be circa 300-400k based on what is known now, however this could change dramatically with future unknowns (potential care costs etc.) so I am not factoring this into my plans.


    Really keen to hear the thoughts/plans of others.


    *this thread is not discriminating against those outside of their 30's but I've tried to target those in a similar boat to me as naturally one's plans will usually be different depending on which decade of life they are in.



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    Last edited by MSE Andrea; 18-10-2017 at 1:22 PM.
Page 3
    • RichyRich
    • By RichyRich 4th Oct 17, 7:14 PM
    • 1,811 Posts
    • 2,188 Thanks
    RichyRich
    Thanks for this thread. I turn 32 later this year and am trying to balance multiple goals, namely that I want to retire (or at least have the option to) at 55, I want to pay off the mortgage, and keep some money readily available for emergencies.

    I'm given to believe that the pension rules are changing to track the state retirement age by 10 years which kyboshes the idea of being able to draw my company pension at 55 so I've started an S&S ISA which doesn't have the same tax benefits as a pension but gives me the flexibility to leave work before I can draw my pension.

    I currently earn in the low 60s and contribute 10% into my employer's defined contribution pension scheme by salary sacrifice. My employer puts in 8%. Total pot size around £75k. I plan to put this up to 11% next year (banking on a pay rise in February; of course I have to pick my contribution level before I get told whether I get a pay rise or not. I went from 9% to 10% last year and then didn't get one!). Have about £20k in cash spread among regular savers and high interest current accounts. About £1600 in a S&S ISA at a reasonably high risk level. Mortgage approx £218k with a crazy London property value of around £400k.

    I thought I was doing quite well till I read others' positions!

    I'm basically stabbing around in the dark trying to meet all these goals and determining how much cash to put towards each. What I'm doing at the moment is a best guess but in trying to do better.

    When I retire I'll probably look to move away from London which will also release some funds from the flat, assuming the north/south divide still exists - although I'm planning on having the mortgage paid off well before then.
    #145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
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    • chucknorris
    • By chucknorris 4th Oct 17, 7:47 PM
    • 9,221 Posts
    • 13,836 Thanks
    chucknorris
    Having read a couple of interesting threads this morning ('over 50's how did you accumulate wealth' and 'a couple of questions for those retired') it made me want to get opinions of people in a similar situation to myself. Obviously, we face different financial challenges (worse pensions, less chance of profiting so much from property, automation killing jobs and industries etc.) and so I am keen to understand what people in their 30's* are planning on doing to secure their financial future.


    Personally, I feel that I am well behind what I need to secure a relatively comfortable future, especially given the uncertainty around the state pension which will most likely not exist in 30 years time. Many older people seem to have multiple pensions to call upon but how is this possible? Is it tax efficient? Where is the best place to start?


    My circumstances:
    - Salary is a modest 32k. OH's salary circa 35k.
    - Good workplace pension (e'er contributes 16%, I contribute 13%), OH's is a teacher's pension so I think she is sorted!
    - Relatively low mortgage (144k on a 350k property, which is joint with partner) @2.14% fixed until July 2021.
    - Circa 60k in cash and investments. Relative to my income, I think my cash position is ok (but who knows what will happen work wise so I want to keep this and add to it as much as possible) so I need to think about investment growth now and potentially a private pension, however I do think that this is 2nd choice to maximising S&S ISA contributions.
    - Future inheritance will be circa 300-400k based on what is known now, however this could change dramatically with future unknowns (potential care costs etc.) so I am not factoring this into my plans.


    Really keen to hear the thoughts/plans of others.


    *this thread is not discriminating against those outside of their 30's but I've tried to target those in a similar boat to me as naturally one's plans will usually be different depending on which decade of life they are in.
    Originally posted by adonis10
    Has your partner looked at buying additional pension in the TPS, it is exceptional value. I have bought the max allowed in the pre 2015 scheme, and when I join the newer scheme in 2020 I will start to buy more again.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now also hike, cycle and swim, less impact on my joints.

    For the avoidance of doubt Chuck Norris is an actor and an ex martial artist (not me)
    • justme111
    • By justme111 4th Oct 17, 7:48 PM
    • 2,821 Posts
    • 2,711 Thanks
    justme111
    I think everybody is guessing as in 23 years before your retirement a lot may happen. The usual advice is to contribute enough to get you out of higher rate tax bracket as the benefit you rexeive from it is so high it would be shame to lose it. Specially if you an do it by salary sacrifise with sacings on NI as well. If you get lets say 53 k gross after your 10% contribution you in reality get only about 7 k from the 13 k above the higher rate threshold. So you could have 13 k additional contributions in your pot by forgoing income only about half of it. (all the numbers are approximate)
    • somethingcorporate
    • By somethingcorporate 5th Oct 17, 8:21 AM
    • 8,835 Posts
    • 8,519 Thanks
    somethingcorporate
    I think everybody is guessing as in 23 years before your retirement a lot may happen. The usual advice is to contribute enough to get you out of higher rate tax bracket as the benefit you rexeive from it is so high it would be shame to lose it. Specially if you an do it by salary sacrifise with sacings on NI as well. If you get lets say 53 k gross after your 10% contribution you in reality get only about 7 k from the 13 k above the higher rate threshold. So you could have 13 k additional contributions in your pot by forgoing income only about half of it. (all the numbers are approximate)
    Originally posted by justme111

    Good advice. Plus moving below £50k takes you out of the child benefit reclaim range - it's not a huge amount but still an additional incentive.
    Thinking critically since 1996....
    • adonis10
    • By adonis10 5th Oct 17, 8:42 AM
    • 1,455 Posts
    • 181 Thanks
    adonis10
    Has your partner looked at buying additional pension in the TPS, it is exceptional value. I have bought the max allowed in the pre 2015 scheme, and when I join the newer scheme in 2020 I will start to buy more again.
    Originally posted by chucknorris
    She hasn't. She is financially illiterate and doesn't know a) how much her pension is currently worth and b) how to find out. I find it staggering given that I know my net asset position on a daily basis. I've been getting my financial house in order firstly but will look to help her now. How does she find out what her pension is currently worth? I don't know what scheme she is in but she started teaching in 2008 or 2009 if that narrows it down.

    How does it work with additional TPS conts? Same as a normal DC pension? More info you can give the better as I need to have a look and help her with it!
    • chucknorris
    • By chucknorris 5th Oct 17, 9:09 AM
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    • 13,836 Thanks
    chucknorris
    She hasn't. She is financially illiterate and doesn't know a) how much her pension is currently worth and b) how to find out. I find it staggering given that I know my net asset position on a daily basis. I've been getting my financial house in order firstly but will look to help her now. How does she find out what her pension is currently worth? I don't know what scheme she is in but she started teaching in 2008 or 2009 if that narrows it down.

    How does it work with additional TPS conts? Same as a normal DC pension? More info you can give the better as I need to have a look and help her with it!
    Originally posted by adonis10
    Here is a link to the members website, she should register here, and she can learn everything that she needs to from the website:

    https://www.teacherspensions.co.uk/members/member-hub.aspx

    Buying additional pension within the TPS is done by either lump sum or regular payments deducted from salary (in the new scheme you can also opt for 'faster accrual', but I am not a member of the newer scheme yet).

    Buying additional pension is very good value, when I bought mine I paid about £74k to buy £5,900 additional pension (that means every year in retirement I get £5,900, which is indexed both before and during retirement). That approximates to 2.5 times what an annuity would pay, I'm not saying annuities are exceptional, but something paying more than twice an annuity is.

    Once she tells you the figures, you will be very surprised at how good the scheme is, it is far better than above average DC schemes. To give you an idea, it worth about 35% of my basic salary (I'm not a teacher by the way, I am a university lecturer).
    Last edited by chucknorris; 05-10-2017 at 9:17 AM.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now also hike, cycle and swim, less impact on my joints.

    For the avoidance of doubt Chuck Norris is an actor and an ex martial artist (not me)
    • adonis10
    • By adonis10 5th Oct 17, 9:23 AM
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    • 181 Thanks
    adonis10
    Here is a link to the members website, she should register here, and she can learn everything that she needs to from the website:

    https://www.teacherspensions.co.uk/members/member-hub.aspx

    Buying additional pension within the TPS is done by either lump sum or regular payments deducted from salary (in the new scheme you can also opt for 'faster accrual', but I am not a member of the newer scheme yet).

    Buying additional pension is very good value, when I bought mine I paid about £74k to buy £5,900 additional pension (that means every year in retirement I get £5,900, which is indexed both before and during retirement). That approximates to 2.5 times what an annuity would pay, I'm not saying annuities are exceptional, but something paying more than twice an annuity is.

    Once she tells you the figures, you will be very surprised at how good the scheme is, it is far better than above average DC schemes. To give you an idea, it worth about 35% of my basic salary (I'm not a teacher by the way, I am a university lecturer).
    Originally posted by chucknorris
    Thanks for the info, we (for 'we' read 'I' and will tell her the outcome!) will start looking into that tonight.


    Oh I wouldn't be surprised, I have an idea how good the scheme is. On the positive side, not having a clue how much it is worth means she will be in for a nice surprise when she finds out!


    Presumably the online portal tells you what type of member you are? I have just done a quick google and it seems complicated to work out due to the changes that have been made.
    Last edited by adonis10; 05-10-2017 at 9:30 AM.
    • chucknorris
    • By chucknorris 5th Oct 17, 9:43 AM
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    • 13,836 Thanks
    chucknorris
    Thanks for the info, we (for 'we' read 'I' and will tell her the outcome!) will start looking into that tonight.


    Oh I wouldn't be surprised, I have an idea how good the scheme is. On the positive side, not having a clue how much it is worth means she will be in for a nice surprise when she finds out!


    Presumably the online portal tells you what type of member you are? I have just done a quick google and it seems complicated to work out due to the changes that have been made.
    Originally posted by adonis10
    She will be a 'transition member' of the career average scheme.

    It only looks complicated for older members who retain rights in the final salary scheme, like me for example. Because I was within 10 to 13.5 years of my 'normal pension age (NPA)', when the new scheme was introduced in 2015, I am a 'tapered member' and as such I retain rights in the final salary scheme until Aug 2020. People who were within 10 years of NPA in 2015 remain in the final salary scheme, they are 'protected members'.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now also hike, cycle and swim, less impact on my joints.

    For the avoidance of doubt Chuck Norris is an actor and an ex martial artist (not me)
    • adonis10
    • By adonis10 5th Oct 17, 9:46 AM
    • 1,455 Posts
    • 181 Thanks
    adonis10
    She will be a 'transition member' of the career average scheme.

    It only looks complicated for older members who retain rights in the final salary scheme, like me for example. Because I was within 10 to 13.5 years of my 'normal pension age (NPA)', when the new scheme was introduced in 2015, I am a 'tapered member' and as such I retain rights in the final salary scheme until Aug 2020. People who were within 10 years of NPA in 2015 remain in the final salary scheme, they are 'protected members'.
    Originally posted by chucknorris
    Ah yes, I just found the factsheet and decided that she is a transition member.


    What I don't get is the amount of pension accrued for the year, so 1/57 of her annual salary for a 12 month period? That's hardly anything. Is it no longer on a % contributed basis?
    • bugslet
    • By bugslet 5th Oct 17, 9:52 AM
    • 5,546 Posts
    • 27,441 Thanks
    bugslet
    Having read a couple of interesting threads this morning ('over 50's how did you accumulate wealth' and 'a couple of questions for those retired') it made me want to get opinions of people in a similar situation to myself. Obviously, we face different financial challenges (worse pensions, less chance of profiting so much from property, automation killing jobs and industries etc.) and so I am keen to understand what people in their 30's* are planning on doing to secure their financial future.


    .
    Originally posted by adonis10
    I haven't got past the opening post here. I have never had a pension beyond the one I put money into myself. Around half of the people I know in my age, haven't had a company pension ( some don't have any pension).

    Profiting from house inflation - I live in my house, I'm not interested in it going up in price beyond I'd like to be an average price area rathere than a poor area ( 3 bed semi in the northwest worth 160k). Automation, you may have something on that one - it's going to be interesting and I really am not sure what is going to happen.

    My point is, that life is what you make it. You are in a country that gave you free education till 18, you can now benefit from all sorts of free resources and you can pay for classes to improve yourself. There are jobs out there, some of them aren't great, but you can improve your chances and you can earn extra by taking a second job.

    You still have the choices I did at your age. I started life as a forklift driver, 8 years later I got a van and worked crazy hours, then a few more, then some trucks, then a second depot and now I employ 23 people. Not a huge firm, but I'm happy with it. There really is nothing special about me, I'm not super clever, I never had a silver spoon, all I did was work and make the most of a lucky break when it came along. You can do the same.

    Edit: I missed the bit wher you said your inheritance. I had to buy my parents house because my parents went bankrupt. My Dad left me nothing and my mum left me 10k, I thought I was loaded ! :-) My OH had no pension whatsoever beyond state.

    Ultimately we can never know what will happen, we get mown down by a bus tomorrow, we may or may not have a state pension in 10/20/30 years time, we may live to a 100 and die skydiving. I think that people overthink sometimes. I've tried to have a balance, be sensible but not sitting in an unheated house in January, go out and enjoy myself but not spend 10k on a Carribean annual holiday. Balance in life makes things easier IMO.

    You are seriously well off in my eyes and all those years to accumulate more. Yippee!
    Last edited by bugslet; 05-10-2017 at 10:08 AM.
    • chucknorris
    • By chucknorris 5th Oct 17, 9:53 AM
    • 9,221 Posts
    • 13,836 Thanks
    chucknorris
    Ah yes, I just found the factsheet and decided that she is a transition member.


    What I don't get is the amount of pension accrued for the year, so 1/57 of her annual salary for a 12 month period? That's hardly anything. Is it no longer on a % contributed basis?
    Originally posted by adonis10
    A 57th accrual is very generous:

    Say her salary was £40k:

    £40,000/57 = £701.75, that isn't a contribution of £701.75, it is what she will be paid every year in retirement, for every year that she works. If she worked for 40 years, her pension would be £28,070 per annum (it is obviously indexed, I am valuing it using current values and ignoring inflation). On my spreadsheet I use a multiplier of 28.5 (that is subjective based upon what my other investments pay and the risk, TPS is virtually risk free, like a Gov gilt). so using my multiplier of 28.5 her pension would be capitalised at just under £800k.
    Last edited by chucknorris; 05-10-2017 at 9:56 AM.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now also hike, cycle and swim, less impact on my joints.

    For the avoidance of doubt Chuck Norris is an actor and an ex martial artist (not me)
    • adonis10
    • By adonis10 5th Oct 17, 10:08 AM
    • 1,455 Posts
    • 181 Thanks
    adonis10
    A 57th accrual is very generous:

    Say her salary was £40k:

    £40,000/57 = £701.75, that isn't a contribution of £701.75, it is what she will be paid every year in retirement, for every year that she works. If she worked for 40 years, her pension would be £28,070 per annum (it is obviously indexed, I am valuing it using current values and ignoring inflation). On my spreadsheet I use a multiplier of 28.5 (that is subjective based upon what my other investments pay and the risk, TPS is virtually risk free, like a Gov gilt). so using my multiplier of 28.5 her pension would be capitalised at just under £800k.
    Originally posted by chucknorris

    That makes much more sense. Wow, that is generous. I can now see why they work teachers to the point of mental breakdown.


    So the 57th accrual rate, do her monthly contributions also accumulate and get added to the pot or is the 1/57th system the be all and end all and the monthly contribution is part payment for that as such? For example, what I and my e'er contribute gets added to a pot, receives a + or - % return based on where it is invested and that makes up the total pot for retirement. With the teacher's pension, let's say she earns 40k every year for 35 years, under the 1/57 accrual rules this equates to £24,561 per year - presumably this is all she gets and the monthly contributions will not necessarily marry up to this figure but are simply offsetting against the benefit she receives? Also, I saw somewhere that the e'er contributes ~16% per month - is this from a different scheme? Surely she does not get the £24,561 AND 35 years of contributions by e'ee and e'er?


    Sorry for all the questions which probably seem daft, but I am new to the pensions game so thought it was more simple than it seems to be.
    • adonis10
    • By adonis10 5th Oct 17, 10:11 AM
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    • 181 Thanks
    adonis10
    A 57th accrual is very generous:

    Say her salary was £40k:

    £40,000/57 = £701.75, that isn't a contribution of £701.75, it is what she will be paid every year in retirement, for every year that she works. If she worked for 40 years, her pension would be £28,070 per annum (it is obviously indexed, I am valuing it using current values and ignoring inflation). On my spreadsheet I use a multiplier of 28.5 (that is subjective based upon what my other investments pay and the risk, TPS is virtually risk free, like a Gov gilt). so using my multiplier of 28.5 her pension would be capitalised at just under £800k.
    Originally posted by chucknorris

    Interested to hear more about how you calculated this, if you don't mind?


    So it would be capitalised at, say, £800k and then an annuity would be purchased for that amount?
    • chucknorris
    • By chucknorris 5th Oct 17, 10:13 AM
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    • 13,836 Thanks
    chucknorris
    That makes much more sense. Wow, that is generous. I can now see why they work teachers to the point of mental breakdown.


    So the 57th accrual rate, do her monthly contributions also accumulate and get added to the pot or is the 1/57th system the be all and end all and the monthly contribution is part payment for that as such? For example, what I and my e'er contribute gets added to a pot, receives a + or - % return based on where it is invested and that makes up the total pot for retirement. With the teacher's pension, let's say she earns 40k every year for 35 years, under the 1/57 accrual rules this equates to £24,561 per year - presumably this is all she gets and the monthly contributions will not necessarily marry up to this figure but are simply offsetting against the benefit she receives? Also, I saw somewhere that the e'er contributes ~16% per month - is this from a different scheme? Surely she does not get the £24,561 AND 35 years of contributions by e'ee and e'er?


    Sorry for all the questions which probably seem daft, but I am new to the pensions game so thought it was more simple than it seems to be.
    Originally posted by adonis10
    No her contributions are merely what she pays, it is all about the 1/57th accrual.

    She would 'only' receive an annual pension of £24,561 (her contributions are only what she paid towards getting that pension, she doesn't also get them back). Imagine two married teachers, they would have a combined pension of almost £50k, plus their state pensions and any other income from other investments, not bad! That's why you will see the occasional angry post from some with only DC schemes complaining that as a tax payer they are subsidising these public sector pensions.
    Last edited by chucknorris; 05-10-2017 at 10:16 AM.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now also hike, cycle and swim, less impact on my joints.

    For the avoidance of doubt Chuck Norris is an actor and an ex martial artist (not me)
    • adonis10
    • By adonis10 5th Oct 17, 10:17 AM
    • 1,455 Posts
    • 181 Thanks
    adonis10
    No her contributions are merely what she pays, it is all about the 1/57th accrual.

    She would 'only' receive an annual pension of £24,561 (her contributions are only what she paid towards getting that pension, she doesn't also get them back). Imagine two married teachers, they would have a combined pension of almost £50k, plus their state pensions and any other income from other investments, not bad!
    Originally posted by chucknorris
    Makes sense. So the e'er contribution method works the same, for example the Local Authority pays in x% as an e'er contribution and that, in addition to her contributions, goes towards paying for the 24k per year in retirement?


    On that note, I imagine that the pension portal will not give her a value as of now, rather there will be a tool to forecast roughly how much her pension will be?
    • chucknorris
    • By chucknorris 5th Oct 17, 10:21 AM
    • 9,221 Posts
    • 13,836 Thanks
    chucknorris
    Interested to hear more about how you calculated this, if you don't mind?


    So it would be capitalised at, say, £800k and then an annuity would be purchased for that amount?
    Originally posted by adonis10
    I am a bit out of touch with annuities, but I think indexed linked (non enhanced) pay around 3.1%. 100/3.1 = a multiplier of 32.3. I don't use 32.3 because there are better investment alternatives than annuities. I use (this is very subjective) 28.5, although it is marginally less than what my other investments return, the TPS pension is virtually risk free, which is why I use a slightly higher multiplier than my other investments return, to reflect the very low risk.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now also hike, cycle and swim, less impact on my joints.

    For the avoidance of doubt Chuck Norris is an actor and an ex martial artist (not me)
    • chucknorris
    • By chucknorris 5th Oct 17, 10:25 AM
    • 9,221 Posts
    • 13,836 Thanks
    chucknorris
    Makes sense. So the e'er contribution method works the same, for example the Local Authority pays in x% as an e'er contribution and that, in addition to her contributions, goes towards paying for the 24k per year in retirement?


    On that note, I imagine that the pension portal will not give her a value as of now, rather there will be a tool to forecast roughly how much her pension will be?
    Originally posted by adonis10
    I am not familiar with the LA scheme, but I imagine it is quite similar.

    Yes it will only show current (not projected) values.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now also hike, cycle and swim, less impact on my joints.

    For the avoidance of doubt Chuck Norris is an actor and an ex martial artist (not me)
    • crv1963
    • By crv1963 5th Oct 17, 10:35 AM
    • 128 Posts
    • 389 Thanks
    crv1963

    Sorry for all the questions which probably seem daft, but I am new to the pensions game so thought it was more simple than it seems to be.
    Originally posted by adonis10


    There is no such thing as a daft question! Those that don't question are daft! The answer to your daft question may be the one that helps you and/or others get the understanding you/ we seek.


    I'm in the NHS Scheme and under my scheme rules I accrue 1/80th for every year worked up to 40/80ths if I retire at my pensionable age or I can then work an additional 3 years and accrue upto 45/80ths. From then on although I can pay into the scheme I cannot accrue any further pension increase although I do get to keep death in service benefit and so for me personally and my situation retiring under my scheme with 40/80ths at 55 makes the most sense.


    I think and am open to be corrected that the teachers scheme like the NHS scheme is unfunded, which means the contributions made don't actually go into an invested pot but are used towards existing pensioners pensions. The actual cost of these pensions is met by government local and national and that is why with increased lifespan generally they are being reformed and altered and staff in the reformed schemes are having to work longer and make higher contributions before being allowed to retire.


    These type of defined benefit(DB) or final salary schemes have almost all disappeared in the private sector and most people in the private sector can only make defined contributions(DC) which are invested for them and are subject to market fluctuations, hence the number of posts/ questions about the different investment areas/ providers.


    Hope that helps explain a little more and you don't think I'm being presumptuous in posting this, and good luck!


    CRV
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
    • economic
    • By economic 5th Oct 17, 10:51 AM
    • 1,828 Posts
    • 944 Thanks
    economic
    i am 34:

    Been working in finance for 10 years. Consistently having an income of around 80-90k on average.

    My net worth (just under 800k) broken down into:
    - property (my home in london) worth 600k vs mortgage of 260k (1.54% fixed for 2 years).
    - stocks and shares ISA worth 163k (fully invested)
    - pension worth 95k (all in stock funds, no bonds)
    - P2P lending worth 33k
    - cash savings worth 165k (some ISA) - yes i know i need to invest this!

    expect to get inheritance north of 500k.

    currently out of work and looking for opportunities.

    my advice is to look at ways to get both spending down and income up. can be easier said then done but thats the only rule you need to know to become financially comfortable. it certainly helps to find it fun (i know i do).
    Last edited by economic; 05-10-2017 at 10:55 AM.
    • adonis10
    • By adonis10 5th Oct 17, 10:58 AM
    • 1,455 Posts
    • 181 Thanks
    adonis10
    i am 34:

    Been working in finance for 10 years. Consistently having an income of around 80-90k on average.

    My net worth (just under 800k) broken down into:
    - property (my home in london) worth 600k vs mortgage of 260k (1.54% fixed for 2 years).
    - stocks and shares ISA worth 163k (fully invested)
    - pension worth 95k (all in stock funds, no bonds)
    - P2P lending worth 33k
    - cash savings worth 165k (some ISA) - yes i know i need to invest this!

    expect to get inheritance north of 500k.

    currently out of work and looking for opportunities.
    Originally posted by economic

    Firstly, incredible position to be in. I am incredibly envious, but it is what is is.

    my advice is to look at ways to get both spending down and income up. can be easier said then done but thats the only rule you need to know to become financially comfortable. it certainly helps to find it fun (i know i do).
    Originally posted by economic
    Totally agree, but the part about increasing the income is really rather difficult at this stage of life. Been through an accountancy qualification and I find myself at 34 on 32k which is obviously quite depressing. Short of retraining (and taking a big pay cut for 5 years) I don't see where significant increases in income will come from so I guess I need to go down the frugality route.
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