Guardian bear Patrick Collinson - Pensions? BTL is perhaps the way to go

Linda_D_2

PasturesNew wrote: »

I've no pension. Not bovver'd. The state pension, on the basis I'll have a house that's fully paid up, will give me more disposable income in my pocket than most of the years I've actually gone out to work.

That's very true for many who will be a lot better off once they start getting their state pension. Personally I don't know anyone who has a private pension due to pensions having such a bad reputation for ripping people off.

I wouldn't start a pension even if you paid me!

Procrastinator333

Linda_D wrote: »

I wouldn't start a pension even if you paid me!

Most employers outside of SME world do pay you to start a pension - employers contributions. And in the not too distant future, that will be true for all employers. But hey, free money, what is the point of that ey.

Your post shows a complete lack of understanding about what a pension actually is. That is not a dig at yourself, but it is very sad that there are many like yourself who make such associations with the word pension. You miss out on a very useful tax wrapper that can be used in so many different ways to provide an efficient method of saving for retirement.

Out of curiosity, what is your chosen vehicle to save for retirement? BTL, cash ISA's, share ISA's, Cash on deposit, Precious metals, fine wines, or something else? I'm assuming you are saving in some form?

Linda_D_2

Procrastinator333 wrote: »

Out of curiosity, what is your chosen vehicle to save for retirement? BTL, cash ISA's, share ISA's, Cash on deposit, Precious metals, fine wines, or something else? I'm assuming you are saving in some form?

Fine wines? Yes I bought some blue nun that I'm hoping to sell for 18k a bottle. I've paid off my home and I'm mortgage free with no debts, and that is due to not wasting money on pension scams.

kabayiri

Linda_D wrote: »

Fine wines? Yes I bought some blue nun that I'm hoping to sell for 18k a bottle. I've paid off my home and I'm mortgage free with no debts, and that is due to not wasting money on pension scams.

I've done work for a few call centre clients here in NW. A lot of the employees don't earn that much. One of the guys, a team leader, earns 18K. He told me how much he is able to put into his pension and how much the company contributes. He has no idea what it might add up to come retirement.

He'd be better off with Blue Nun (or possibly Liebfraumilsch at a push).

Procrastinator333

Linda_D wrote: »

Fine wines? Yes I bought some blue nun that I'm hoping to sell for 18k a bottle. I've paid off my home and I'm mortgage free with no debts, and that is due to not wasting money on pension scams.

Can't tell if you are actually that stupid, or just trolling.

Yup, mortgage free and no debts, very much an important part of a succesful retirement. But what have you done to provide an income in retirement beyond the state pension? As that is quite obviously another aspect to a succesful retirement.

I'm curious as to how a tax wrapper can be considered a scam. But from the sounds of your posts, you prefer to live in ignorance over informed choice.

Linda_D_2

Procrastinator333 wrote: »

Can't tell if you are actually that stupid, or just trolling.

Yup, mortgage free and no debts, very much an important part of a succesful retirement. But what have you done to provide an income in retirement beyond the state pension? As that is quite obviously another aspect to a succesful retirement.

I'm curious as to how a tax wrapper can be considered a scam. But from the sounds of your posts, you prefer to live in ignorance over informed choice.

No-one can be as stupid as you.

Procrastinator333

Linda_D wrote: »

No-one can be as stupid as you.

Trolling it is then. Congrats for getting that first bite. I really need to trust my troll radar next time and not waste those few mins of my life.

Linda_D_2

Procrastinator333 wrote: »

Trolling it is then. Congrats for getting that first bite. I really need to trust my troll radar next time and not waste those few mins of my life.

Ahhh resorting to troll insults when you know you're beaten, better luck next time:)

chewmylegoff

Linda_D wrote: »

Ahhh resorting to troll insults when you know you're beaten, better luck next time:)

Is this some attempt at irony given your "you are stupid" retort above?

In any case pensions are just a generic wrappers and are no more an evil scam than ISAs are. You can put what you like in there. Financial products will always come with charges in the same way that anything you buy costs money. You can't just get stuff for free (including your state pension which you pay tons of tax now to receive later).

grizzly1911

kabayiri wrote: »

I've done work for a few call centre clients here in NW. A lot of the employees don't earn that much. One of the guys, a team leader, earns 18K. He told me how much he is able to put into his pension and how much the company contributes. He has no idea what it might add up to come retirement.

He'd be better off with Blue Nun (or possibly Liebfraumilsch at a push).

There must be a graph somewhere that shows the tipping point , salary, for when pension provision actually becomes harmful especially given the sacrifices through life you will make simply to pick up a couple of grand a year extra which you then pay tax on.

For the lower paid there must be point where it simply isn't worth having a pension, if it tips you over a threshold that prevents you claiming additional benefits and free NHS benefits.

I guess that tipping point may vary over time but I would suggest it is going up, with the potential for "poor" returns, for many DC products for the foreseeable future and using the current annuity rates/increased life expectancy.