Aged 35 - I don't have a pension!

richbeth

Rollinghome wrote: »

I'll let someone else do those sums but overall there's unlikely to have been much gained by investing during that period and anyone starting now rather than then might have reason to consider themselves lucky.

Coincidentally I've just got an annual statement from one of my pensions.

I started it ca 2001/2. It shows a total contribution of £68k (cost to me as higher rate tax payer £41k), value today £95k. This is a totally off-the shelf Standard Life offering with no active investment on my part. I've paid in regular monthly contributions which have increased over time so working out the rate of return is complex. However, I think that's a decent gain and shows the benefits of regular investment through peaks and troughs

Richard

gadgetmind

There is an inflation adjusted total return graph in this document.

http://www.schroders.com/staticfiles/Schroders/Sites/UKRetail/Adviser/Navigator/Navigator_guide_-_inflation.pdf

coastline

gadgetmind wrote: »

There is an inflation adjusted total return graph in this document.

http://www.schroders.com/staticfiles/Schroders/Sites/UKRetail/Adviser/Navigator/Navigator_guide_-_inflation.pdf

Thanks for that...Barclays produce something every year indicating equities are the way to go...outperforming other classes over the last century..??
Not sure if they include inflation...but it is on paper...so again you need a fund to match the performance...which is the main thing... I'll see if I can dig it out ..

http://monevator.com/uk-historical-asset-class-returns/

atush

I have seen plenty of studies, some going back to 1900 or more. All comparing equities, cash, property and gold during the time frame to now. Equities win.

AlexPQM

atush wrote: »

Wrong.

by 2016 your enployer will be foreced by law into paying contributions to a pension. But best not to wait.

Not true - this is staggered depending on the size of the employer. The largest ones have to start from October this year with the smallest ones towards the end of 2017.

If you want more info on this, Google 'pensions auto-enrolment'.

AlexPQM

rockitup wrote: »

The employer contribution rate will be 3% for defined contribution schemes under NEST, starting between 2012 and 2018 depending on size of Employer. Both Employer and Employee can have their contributions in the early years scaled in... Employer rate will start at 1% increasing to 2% then 3%.

Oops didn't see this post. I think the smallest employers are coming in by 2017 and then the contributions are gradually rising in 2018 up to 3% employer, 3% employee, 1% tax relief. So the whole process should be finished by end of 2018, unless the Government decides to postpone it again. It is likely the Government will review this minimum figure then and decide if it should be increased.

Some employers will, however, contribute more than that, the above figures are the bare minimum they will have to contribute.

gadgetmind

atush wrote: »

Equities win.

Yes, and even during "lost decades" they still do very well even though all the figures above are UK only; throw in other territories, and other asset classes, and do some rebalancing, and it's clear why richbeth is now as rich as she is!