Pension,is it relly worth it?

neil298

what you say makes perfect sense,where were you when I needed you 30 years ago!!

how i wish I had a time machine.Unfortunately I cant go back so looks like i'll have to play the hand ive been dealt with.Thanks again

BobQ

neil298 wrote: »

Just a quick question,My wife has decided recently that at the age of 53 she should really try and put something away in a pension fund,We are well covered with life insurance and house equity but she is worried that if anything happens to me she needs to have something.She now pays £100 per month and has been notified that her pension will be £117 per month from her retirement age(66).Now to me that seems a liitle bit ridiculous.It basically means that if she is to see any benefit at all she will have to live beyond 76 years of age.Surely the £15,000 plus that she will pay in contributions between now and the age of 66 could be better used elsewhere?.Judging by what the government have done with my pension(albeit a very small one)pensions just dont seem to be a very good way of investing.

Can I just check. Are you mixing up state pension and occupational pensions?

Is she expecting a statepension of £117 form age 66? Or is this a projection of pension from an existing occupational pension?

What fund is she paying £100 per month into? Is it an additional occupational pension? Is she doing this alone or are there and employer contributions?

wildbri

• I would't worry about it Neil,I worked for fiftyyears and ended up with a private pension of £127 pmonth..but the government stoppe £18 per week out of my oap beccause I was contracted out. been retired twelve years my wife and I both have oaps, the £127 per month pays for the gas and electric, the bungalow is paid for, we get council tax credits, I do all repairs including the car. We are fit and well, do lots things and travelling, but are MSE and always look for a good deal ( just had bed and breakfast for two in a large seaside hotel for £25, thank you bookings.com).Just enjoy your life and your retirement will take care of its self belive me. regards bri

dunstonh

I worked for fiftyyears and ended up with a private pension of £127 pmonth

In monetary terms, if it was a personal pension, it would be around £30,000 pot. Using a period of 50 years, that would equate to a monthly premium of around £21pm in todays terms (used 2.5% for inflation and 5% for growth - so effectively 2.5% net). And that ignores the contracting out figure. If we deduct the £18pw from the "private" pension, then it means just £49pm comes from your own provision. Which means if you contributed over a 50 year term, then you paid on average £10pm in todays terms towards your retirement.

You appear happy with what you have and that is good but I thought it would be helpful for others to see how you ended up with such a small pension after 50 years of working life if a personal pension was used to a similar outcome.

mania112

If she has no pension provision so far, she could aim to save enough to fall within the £18k limit to extract the whole lot at retirement (known as triviality).

I don't really know if it's a good idea, seems pointless, but at least you will know all will not be lost if she doesnt manage to save a decent enough sum to provide a regular income.

atush

And you might review what your pension is invested in, if it has done that badly.

neil298

wildbri wrote: »

• I would't worry about it Neil,I worked for fiftyyears and ended up with a private pension of £127 pmonth..but the government stoppe £18 per week out of my oap beccause I was contracted out. been retired twelve years my wife and I both have oaps, the £127 per month pays for the gas and electric, the bungalow is paid for, we get council tax credits, I do all repairs including the car. We are fit and well, do lots things and travelling, but are MSE and always look for a good deal ( just had bed and breakfast for two in a large seaside hotel for £25, thank you bookings.com).Just enjoy your life and your retirement will take care of its self belive me. regards bri

Good on yer Bri,Hope you and the Mrs live long and happy,We're obviously in the same bracket of wages needed to live on with no real scope for puuting loads away,whats money without happiness and a great partner! happy xmas