Pensions Pay or not Pay

Stockylad_2

Not being lucky enough to have a Company Pension I have had a personal pension plan for 20 years or so. I put in around 12 % of my gross salary. When I discuss this with friends etc, (also who dont have company pensions)I find I am probably putting in the most money by far. However I notice these people live far higher lifestyles,go on more holidays etc.The obvious conclusion is they live now and worry about things like pensions later. Whilst I recognise it is difficult and wrong to judge other peoples finances, they cant all have won the lottery.
My question is what happens to people who have no pensions, or pay in the minimum ? Does the state then kick in and support them ? I dont want to appear self righteous but I wonder if in real terms putting this money away I will in fact be any better off ?

Any comments ?

aj3001

Your PP sounds like it could be worth a tidy sum!

I don't know about what happens regarding the state helping, but why don't you take a contribution holiday from your policy? Your pension will still continue to grow at a nice rate even without a regular premium

Xbigman

Will the state help? No.

Basic state pension (from memory) £84. There is currently a means tested pension credit if you have no other pension provision that makes this up to £122. Can you live on £122 a week? I just about could but I'd hate it.

In your case you have a pension that will provide much more than the pension credit so you don't need it. Just keep paying as you have for the last 20 years. You are the sensible one. Also don't be fooled by others supposed spending power. They could be running up credit cards and loans and heading for some nasty shocks.

You could take a contribution holiday but for the extra few £ a week its just not worth it. Remember you are getting a tax rebate on your 12% contribution so you will not get the full contribution to spend if you do take a break.
Regards



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