How can I pursuade him to get a pension?

dunstonh

The point of asking this, was that if an individual is very risk averse, so that any kind of investment be it in pension or ISA is rejected, or if only one of a house or a pension is affordable, then a house would be the best option after cash savings IMHO

Property is an asset class that can go down as well as up and a bad tenant can create all sorts of financial loss. There are also legal liabilities to consider as well. Property is not an investment for the risk averse.

Alternatively, if you don't want to move, you can use an "equity release" scheme which enables you to borrow against the value of the property without repaying in your lifetime.You can also generate tax free income by renting out a spare room.

Not things you want to plan for though. These are options of last resort normally.

EdInvestor

I meant to buy a home of their own, not a BTL.:rolleyes:

Perhaps you might be surprised how many people are in "last resort" land.Have you noticed how fast the equity release market is growing?And how strong the prices are at the bottom end of the property market - partly that's people trading down and buying up smaller places so they can realise a lump sum.

How else do you think people are coping with the collapsing value of pensions and endowments in the past few years? Not to mention stuff like divorce and forced early retirement?

You sound a bit like one of the "IFAs in fairyland" that Payless was mentioning.:cool: It's tough in the real world these days - even for the people who conventionally saved and then found their dreams crashing around their ears just as they were about to retire.

It's very easy to understand the scepticism of the OP's hubby about pensions when you look at what has happened in the past few years. .

dunstonh

I meant to buy a home of their own, not a BTL.:rolleyes:

Fair enough

Perhaps you might be surprised how many people are in "last resort" land.Have you noticed how fast the equity release market is growing?And how strong the prices are at the bottom end of the property market - partly that's people trading down and buying up smaller places so they can realise a lump sum.

Doesn't make any more desirable to be in that position.

How else do you think people are coping with the collapsing value of pensions and endowments in the past few years? Not to mention stuff like divorce and forced early retirement?

Scaremongering again. People have their money on savings accounts paying under 1% interest. No-one forces them to. Things can be done about it. There is little point sticking your head in the sand hoping it will go away. However, it is so much easier to blame others.

You sound a bit like one of the "IFAs in fairyland" that Payless was mentioning.:cool: It's tough in the real world these days - even for the people who conventionally saved and then found their dreams crashing around their ears just as they were about to retire.

Sorry. I don't see that. Ok, thats partly because the people I see are taking the advice. They are saving the money. They have investments built up. Probably the people you refer to aren't on my radar.

I would prefer to live in my fairyland than live in your cynical, "everything is bad, everyone is bad" land. In your world, it appears that people should be planning to fail. You know, don't save, don't take any responsibility for yourself. You can sell up when you retire and go live in the poor area of town.

With Profit endowments have had problems. No point denying that. However, interest rates have fallen significantly. Inflation is consistently lower than ever. Even with failing endowments, people are richer than they would have been under the old boom/bust economy with high inflation when the endowment would have paid off.

Now, collapsing pension values? Erm, stockmarket crash. Ever heard of one? They come around every 10-15 years. Actually quite a good thing in the long term for those making regular contributions. Yes, your value goes down after the crash but then it goes back up again. Wow magic.

Lets lay all of societies problems at the door of endowments and pensions and blame those that sold them.

Lets not blame the individual who started saving £25pm in 1988 and still saves £25pm expecting to get back £500pm income in retirement. Lets not blame the people who prefer to spend £300 a month on entertainment, booze, cigarettes, sky, whatever but cant find £50pm to put into the pension but dont care as the state will look after them. After all, they can equity release their house.

So csa, you can follow Eds advice. Do nothing, don't care, bury your head in the sand because everyone out there is horrible and everything is bad. Don't worry because you can get to retirement and sell your house you have lived and worked for all your life or you can release the equity meaning you will have no legacy to pass to your children in the hope that they will have a better life than you got.

Equity release should be seen as a last resort. Its not something to plan for. God help you if you rent and don't even have that option.

csa

Thanks for everyone's contributions to my post. Still a little unsure where to go, but will approach the subject with my hubby shortly.

I've got little pots of money all over the place. A mini ISA, National Saving Cert, Cahoots' account (not that there's much in any of these) and the husband and I save into his Halifax regular saving account which is great, but of course not ideal if viewing this as a future pension plan. I will need to sit down at some time and decide to move my pots into one pot to get more benefit, especially as when the baby arrives, there will be little less cash going into these accounts as well as time to organise them.

I would like to talk to our financial adviser about this and the pension (haven't had a meeting in 4 years!), but I'm unsure as to whether if we ask him to visit whether we are right to ask advice about the above or do financial advisers only come round if there's something in it for them?

Thanks

$17mma

But can you not set up private pension for him, ok this will mean you paying into it but maybe you can also put yourself down as beneficiary.

Not sure if this is allowed but am sure someone will be able to advise.

Pal

$17mma wrote:

But can you not set up private pension for him, ok this will mean you paying into it but maybe you can also put yourself down as beneficiary.

Not sure if this is allowed but am sure someone will be able to advise.

No you can't. It is illegal in the UK to buy an investment in someone else's name. The individual would still have to sign to set the policy up.

However if the original poster has spare cash each month to save (or can get contribution money off her husband) then she can set up another pension in her own name contribute more to her pension through work. However ideally the person paying the highest tax rate would make all of the contributions.