Pension, Debt, Savings or Mortgage?

YoungBusinessman

At 21 i have looked into investing,pensions and how to run a business the past 2 years. I am much further on than most but still feel i have no clue about either of the first 2. The first 2 make running a business look easy. So i have my pension up and running...will most likely keep filling cash ISA every year to start with as i can see me going part time before 60...but never retiring unless i really am forced to.

I wont be saying that when i hit 41 in 20 years time but you never know whats around the corner.

CharlieRabbit01

oooh Part Time... if my scheme is final salary and I've gone part time by the time I reach retirement would I get a pension based on the full time equivant?

ie if I went part time and earn £10,000pa witha full time equivalent of £20,000 would I get 1/60th of £10,000 or £20,000?

I'm assuming it would be the latter.

taktikback

Let's not get greedy.......

Not unreasonably, if you went part time then they make an adjustment to the membership length part of the calculation. So 20 years at half your normal hours would give you 10 years membership (10/60ths) - the same pension as 10 years at full time.

CharlieRabbit01

taktikback wrote: »

Let's not get greedy.......

Not unreasonably, if you went part time then they make an adjustment to the membership length part of the calculation. So 20 years at half your normal hours would give you 10 years membership (10/60ths) - the same pension as 10 years at full time.

that makes sense, so if I worked 30 years full time and 20 years part time I'd get 40/60ths of the FTE?

jem16

CharlieRabbit01 wrote: »

that makes sense, so if I worked 30 years full time and 20 years part time I'd get 40/60ths of the FTE?

Yes you would.

You also mentioned earlier about the accrual rate being higher for a career average scheme. Basically the accrual rate has to be higher for a career average scheme than a final salary scheme or you would end up with a lower pension as your career average is likely to be lower than your final salary.

taktikback

which makes me laugh because in order to able to say they have dealt with "Fat Cat" final salary pensions for a minority of high earners at the top, they will now be saddled with the cost of giving 1/49th accrual to a much larger chunk of low to middle earners who have already effectively reached their earnings ceiling.

They will already have a final salary pension based on the existing scheme and will now be quids in with the new one.

It will all balance out in the fullness of time -but it makes the claim that somehow the point of the exercise was to reduce the cost of the scheme, look rather dubious...

jem16

taktikback wrote: »

which makes me laugh because in order to able to say they have dealt with "Fat Cat" final salary pensions for a minority of high earners at the top, they will now be saddled with the cost of giving 1/49th accrual to a much larger chunk of low to middle earners who have already effectively reached their earnings ceiling.

Which is really why the scheme changes should apply to new members as opposed to all.

ianbugsy

Good Afternoon, I have a pension fund of £6,500 and I need to raise some cash is there any reputable company who would look into this for me ?
Thanks
Ian

dunstonh

ianbugsy wrote: »

Good Afternoon, I have a pension fund of £6,500 and I need to raise some cash is there any reputable company who would look into this for me ?
Thanks
Ian

Please do not hijack an unrelated thread created by someone else. It is not fair on them. Your duplicate post has been answered and there is a thread at the top of this section which will tell you that you cant. If you have any further comments to make, please do it on your own thread.

atush

Planning for the future has never been my thing I tend to live for now.

This is your biggest problem and how you ended up in debt. You really need to cut down expenditure so get over to the debt free board and post an SOA NOW.

You need to stop spending on fripperies, fancy pants coffees etc. Thhink about a cheaper place to live or renting out a room etc.

Join the pension Tomorrow, do not delay/