Are you also saving for retirement?

beingjdc

No, I'm too busy saving for a house to worry about retirement!

I have savings and investments. I've put "No", because I might use them all when I buy a house, or I might not.

Snooze

I don't have any proper pension fund as I don't trust any of them. Too many horror stories where people have been putting every spare they've had into them for 40 years only for the company to say "can we draw your attention to our T&Cs number 1254667657 part (h) (amendment no.184) where it says we reserve the right not to pay you anything and there's nothing you can do about it" :rolleyes: . Also with the state the financial institutions are in at the moment I wouldn't be trusting anyone with my money except me and I don't care what supposed "guarantees" the Government say they've got in place.

My retirement/savings pot money is nicely stashed away as cash in various locations that only I know about and that's the way it's gonna stay. I would much rather have the peace of mind of knowing I can access it at any time I wish and no make any interest on it than have it in some proper savings/pension plan where there's a distinct possibility I could end losing the lot.

Rob

SingleSue

I have a pension which was formerly a company pension (employer contribution 10%, employee contribution 5%), on leaving the company when hubby did his flit up north, I spoke to the pension company and still pay a small amount each month in.

Unfortunately, I don't think it will be enough to cover me in retirement so will have to hope my master plan comes off and I can start shovelling money away in preparation!

leveller2911

Interesting thread ,Im self employed, just turned 40.Ive had 2 private pensions which are both now frozen.I was paying £130 per month since I was about 22.

The forcast (mid figure) was for a fund in 2028 of around £110k.This would buy me an annuity penson of £6,500 per annum,if I wanted it to carry on after my death for my wife we would get only £3,500 per annum..

Since all governments screw you when you take your pension I froze mine and Im investing in a few antiques, things I know a bit about and hopefully when I need the money they will give a better return.

I dont believe annuity rates will ever get back to the heady days of old, think they are a financial dinosaur who's days are numbered.:rolleyes:

leveller2911

Really2 wrote: »

Thats OK as long as you can get a council bungallow.:eek:
Your retirement is likely to longer than the time it would take to pay off a mortgage.

I dont entirely agree with that, If your a manual , male worker who is lucky enough to retire at 65 I dont think you'll find many will still be alive at 90, which is the term of a 25yr mortgage.

I dont think I will be able to afford to retire in all honesty.I think I will have to carry on working for 2-3 days per week..Im 40 and my body,s knackered already ..lol:rotfl:

Karen's_girl

Yep, I have a Company/Personal Pension and/or ISA savings

This thread is timely, as I have been thinking over the past week how I can try to save a bit more for my old age. I contribute to a company pension, but for the past 3 and a half years, have also been contributing £100 per month to a S&S ISA, and am aiming to build up a cash savings pot to accompany these. I'm hoping this will go some way towards funding a fairly decent retirement, but I take nothing for granted.........

Dithering_Dad

Yep, I have a Company/Personal Pension and/or ISA savings

leveller2911 wrote: »

I dont entirely agree with that, If your a manual , male worker who is lucky enough to retire at 65 I dont think you'll find many will still be alive at 90, which is the term of a 25yr mortgage.

I dont think I will be able to afford to retire in all honesty.I think I will have to carry on working for 2-3 days per week..Im 40 and my body,s knackered already ..lol:rotfl:

While I think it's perfectly valid to rent for life, I had to point out that most people's mortgages could be paid off before they reach 65. I'm hoping to get rid of mine before I'm 45. That'd give me 23 years before state retirement and (hopefully) a further 20 years before death. A total of 43 years of living rent/mortgage free.

I see my mortgage free status as a foundation for my comfortable retirement, but I understand why others would like to rent for life, though I'd only feel comfortable doing it as a LA tenant with secured tenure. I'd hate to be arguing with a crappy landlord to get my heating fixed or to be worried about having to move out because the house was sold from under me.

Dithering_Dad

Yep, I have a Company/Personal Pension and/or ISA savings

Snooze wrote: »

I don't have any proper pension fund as I don't trust any of them.

Who are 'them'?

My pension is totally under my control. At the moment, most of it is in a cash deposit waiting for the market to fall a bit before I buy back in - well, except £5k that I have invested in some bank shares and a pub chain just for fun.

I had a colleague at work who was of the same opinion as you - he didn't trust pensions and so didn't join the company scheme, which we had to pay in 3% and they paid in 10%. We both started and left that company within pretty much the same time period (2.5 yrs). I left with 32.5% of my salary in a pension (including 40% tax rebate and investment growth) and he left with nothing. I now have £82k in my pension pot and to my knowledge, he still has nothing in his.

If I were you, I'd look at the legislation that has come in since Maxwell and Equitable Life.

If you are in a final salary scheme and your company goes bust, the Pensions Protection Fund will pay you upto 90% of the pension you would have received (up to a max of £25k per year). If you are already retired, the scheme will continue to pay your current pension. The pension protection fund also covers annuities.

If money has been put into stocks and shares, funds that invest in them, and pension funds, then this is classified as “risk based” investment and not savings. If the investment company goes bust, the first £30,000 will be refunded, plus 90% of the next £20,000 (a total of £48,000); while pension and life assurance funds get the first £2,000 refunded, plus 90% of everything else in them.

With all this, what is there to be afraid of?

chucky

Yep, I have a Company/Personal Pension and/or ISA savings

Karen's_girl wrote: »

This thread is timely

it's been a excellent thread - it's made me consider other options for retirement that I hadn't considered or maybe had taken a bit too much for granted and thought that wouldn't be applicable to me. it's been very interesting.

Cannon_Fodder

Yep, I have a Company/Personal Pension and/or ISA savings

DD, short answer - "the unknown".

There are concerns of fairly recent pensions activities;

"Threat of fresh pension scandal - People who switched to group schemes may have been mis-sold"
http://www.timesonline.co.uk/tol/money/pensions/article1942066.ece

"Pension sales: a future scandal?"
http://www.guardian.co.uk/business/2007/nov/18/businesscomment.businessandmedia1


PLUS, concerns over the Govt's own NEW scheme...

"Pension scheme 'scandal in the making' "
http://www.ft.com/cms/s/0/a7b5a888-35bc-11dd-998d-0000779fd2ac.html?nclick_check=1


Now I fully acknowledge my limited experience with pensions, and am not rubbishing the whole industry, indeed I am using my employer's own scheme to take advantage of their contribution, as you did.

But equally, just like anything in the future, NO-ONE can KNOW what sort of scandal, small print, or sheer incompetence will result in a financial loss for an individual 10, 20, 30 years from now.

...or, what get-out clauses, loop-holes, or sheer incompetence will result in failure to obtain redress. We cannot foresee the future.

Whilst there are headlines out there, like the above, there will inevitably be concerns. Whilst unproven for the time being, it may appear negative to dwell on them, and many don't know how to avoid the risk anyway, however slight, so I would say "spread the risk";

- take advantage of any employer contributions
- put a proportion into Pension
- but, ALSO, put a proportion into ISA
- if you change employers, my personal opinion is that you should leave chunks of pension "dormant" with each ex-employer - if for some unforeseen reason the last employer's pension doesn't do as well as hoped, better if you haven't got all your eggs in it...


Looking again at DDs comments, which I know he knows his stuff on, I would also observe that he's been DIY on Pensions for some time. Other people don't have the time or mathematical/financial acumen to take on DIY for something as complex as Pensions. Anyone with an employer who will do it for them, will barely think about it - indeed its a struggle to encourage youngsters to start as early as possible, let alone understand the details.

So, while agreeing with the idea of pensions, I regret that the Govt have failed to make them foolproof, such that they even need any compensation schemes.