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Help me understand pensions please?

24

Comments

  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Spam reported.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • GhIFA wrote: »
    To give you some income in retirement.

    How old are you now? When do you want to retire? What income do you want in retirement? What other savings do you have?

    29
    No idea
    No idea
    Approx 5K
  • jimjames
    jimjames Posts: 18,909 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    gadgetmind wrote: »
    Spam reported.

    Same here.

    Would anyone seriously use an adviser that tries spamming like that? Idiots!
    Remember the saying: if it looks too good to be true it almost certainly is.
  • SteL
    SteL Posts: 9 Forumite
    Is it possible to work out how much I will receive when I retire so I can work out how much I need to put in now? Is there a standard formula or do I need to read and understand the bucket load of paperwork I received from the provider?
  • bryanb
    bryanb Posts: 5,034 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    SteL wrote: »

    I have heard recently (and I don't know if this is a new thing or not or indeed whether it is true) that your private pension is deducted from your state pension. Can anyone clarify this as it would seem pointless to pay into a private pension if it is only going to be deducted from my state pension :huh: very confusing!

    There is a deduction from state pension in respect of any time you were contracted out.
    This is an open forum, anyone can post and I just did !
  • margaretclare
    margaretclare Posts: 10,789 Forumite
    I'm equally baffled about how pensions work.
    My Father encouraged me to set one up when I was 21 and in stable work. Been paying about £90 a month ever since.
    No idea why...

    Didn't you ask him?

    The basic idea of saving for a pension is that you'll still need an income, need to eat, pay bills etc, when you no longer have an income from work. It's possible to live for several decades after the possibility of earning money from work has gone, and you'll still need money after that. Clothes, food etc...

    The basic idea is pretty simple.

    HTH
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • bryanb
    bryanb Posts: 5,034 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Linton wrote: »
    Your state pension is not affected by your private pension.

    Mine is, see my previous post.
    This is an open forum, anyone can post and I just did !
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Try playing with this calculator.

    http://www.hl.co.uk/pensions/interactive-calculators/pension-calculator

    There are advanced options you can play with and don't forget state pension. In fact, seeing the numbers here will make you realise what a bargain state pensions are!
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    bryanb wrote: »
    There is a deduction from state pension in respect of any time you were contracted out.

    Not from basic state pension and contracting out doesn't affect those starting now.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • SteL
    SteL Posts: 9 Forumite
    bryanb wrote: »
    There is a deduction from state pension in respect of any time you were contracted out.

    How would one be contracted out? Would this happen if I were to stop contributing to NI?
This discussion has been closed.
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