Mass wake up call needed on level of Pension contributions

nearlyrich

The age that people in your family died in the past is not really a factor in deciding on your lifetime financial planning, 60 years ago many people died young, they had much harder lives than we do and a lot of the diseases that killed people have been eradicated and we have better drugs etc to fight them.

I have been doing my family history recently and it's heartbreaking how many small children died of relatively trivial complaints...many brought on by the sub standard housing they lived in.

At 26 even a small contribution will go a long way and you can take 25% of your pot at 55 as a lump sum, just don't forget to increase the amount you pay in when times get better.

CLAPTON

dobbie82 wrote: »

I am 26 now, my great grandmother died at 50, my grandmother at 52 and my mother at 55... I have to work til I am 68 at least (though I assume this will go up again) so I even if I could afford to start a pension (I can't) I am not sure I should bother!

you can retire at any time you like
you can take private pensions at age 55 (assuming the scheme allows)
your state pension however comes after 65 depending upon how old your are.

dunstonh

I am 26 now, my great grandmother died at 50, my grandmother at 52 and my mother at 55... I have to work til I am 68 at least (though I assume this will go up again) so I even if I could afford to start a pension (I can't) I am not sure I should bother!

1 in 5 will die before retirement. So, if you think that you prefer the odds of 20% chance of to die rather than the 80% chance of living then fair enough.

Pension money isnt lost either as its paid out as tax free lump to your beneficiaries.

As mentioned higher up, the average life expectancy has been increasing and its now closer to 20 years after retirement compared to just 2 years when the state pension started.

barny_100

Andy_L wrote: »

If you look at the PPI article that 40% is for somebody who starts saving for retirement at 51 & wants to retire at 65 on 2/3rds salary so its a bit of a scaremongering headline

On a related note, when I see these percentages, that I know are not gospel and should be taken as guidelines rather than fixed rules etc etc. Does it all have to come from my pocket? For example my pension is an investment scheme where I pay in 6% of pre-tax salary and that is matched by my employer. Does the 6% from my employer "count" towards these types of calculations. I see no reason why not but just wondered?

robin_banks

Pensions are an abolsute fog to me tbh.

I had non-contributary civil service pension scheme from 1995-1997 when I left , an employer's pension till 2002 when I was made redundant, nothing till summer 2006, though I was working for the vast majority of this time.

I'm now in a scheme where 6.5% contributed by employer, I put it an additional 3.5 %, from April 2009 this will be going up to 5%.