Age/Pension Pot

ShootForTheMoon

Thanks for all your responses - and apologies if it was a daft question in the first place!!

At the moment, it is a final salary pension, although I've no doubt that this will probably be changed over the next thirty years!!

I like the sound of a S&S ISA. I assume I could start just putting small amounts away and increase these as my income increases and outgoings decrease as I get older...

Thanks again for your input - appreciate it!

cyclonebri1

ShootForTheMoon wrote: »

Thanks for all your responses - and apologies if it was a daft question in the first place!!

At the moment, it is a final salary pension, although I've no doubt that this will probably be changed over the next thirty years!!

I like the sound of a S&S ISA. I assume I could start just putting small amounts away and increase these as my income increases and outgoings decrease as I get older...

Thanks again for your input - appreciate it!

Not a daft question at all, but it got a few daft answers

There is a problem here. The assumptions of needs in later life are far exaggerated, (in my view), given failing health.

Also almost everyone who advises here assumes the OP has "loads of money", and can fall into the plan.

That's wrong, the compromise factor has to be invoked, are you going to arrive at your grave side in perfect working order with enough funds to live to 200??

(No, you aren't or at least shouldn't plan to)


So, what am I saying?

Plan all you want, but which one would you rather be, the bloke that died rich at 70, or the guy that just had enough money, but was still going strong at 80? I don't need an answer.;);)

Lokolo

cyclonebri1 wrote: »

So, what am I saying?

Plan all you want, but which one would you rather be, the bloke that died rich at 70, or the guy that just had enough money, but was still going strong at 80? I don't need an answer.;);)

No, he wants to be the bloke who can retire comfortably at a 'young' 55. And to do so is making the most of his (or her?) age now by planning for the future.

My grandparents are mid 60s, been retired for 5-8 years (depending on which one we are talking about). They do numerous activities, go on 4-5 holidays a year and enjoy every moment.

I doubt they were thinking when they were younger "oh lets not plan ahead". Better to be a rich 70 year old than a poor 60 year old.

planteria

ShootForTheMoon wrote: »

Excellent, thanks for the response, Planteria!!

I know it's a very specific pension scheme - the only "advice" we've ever been given is "Just join it" - which is obvious, but I have a poor understanding of how it actually works! Which I guess is pretty much the case across the board as those nearing retirement are on the far more generous old scheme.

This thread has got me thinking and I will do some research into it today! Hopefully it can only be a good thing!!:o

looking into it & understanding how the scheme works would be good. i'd expect you to be convinced further to remain invested. but you may want to invest alongside too.

planteria

Lokolo wrote: »

No, he wants to be the bloke who can retire comfortably at a 'young' 55. And to do so is making the most of his (or her?) age now by planning for the future.

me too

a compromise, in terms of enjoying working life, is fine, as cyclonebri suggests.

ShootForTheMoon

Indeed... The aim is to not have to work after the age of 55 at all.
By no means am I wanting to die rich, just to maintain a lifestyle that I enjoy - adventure holidays, hobbies, eating out, decent car etc...

I've sought lots of guidance since posting which has been very helpful. In theory, I shouldn't need to have an additional "safety net" although the terms of our pension have changed very recently - meaning we pay more - for less in the end!! There's nothing to say that this couldn't happen again in the future - it would be foolish to think that it will not change again in the next 30 years I have left to serve...

Overall, I think the suggestion of a S&S ISA suits me best at this point - thanks all for your input and opinions - it's much appreciated!!

atush

ShootForTheMoon wrote: »

Excellent, thanks for the response, Planteria!!



I know it's a very specific pension scheme - the only "advice" we've ever been given is "Just join it" - which is obvious, but I have a poor understanding of how it actually works! Which I guess is pretty much the case across the board as those nearing retirement are on the far more generous old scheme.

This thread has got me thinking and I will do some research into it today! Hopefully it can only be a good thing!!:o

I would read up on it, esp about AVCs if they exist, and what/how they can be used. If they can be used to pay the tax free LS rather than commuting your valuable FS pension then they are worth looking at.

Then there is buying extra years and what that costs- can be worth it.

Then there is that (IMHO very early retirement age of 55) which will feel quite young when you get there. And how much (if at all) your pension will be reduced for taking it then. Your pension could be reduced by 5% or more for each year early, so if your retirement age is 60, taking it at 55 would mean reducing your pension for life by 25%. Or if it is 65, then reducing it by a staggering 50%.

This can be helped if you save into S&S ISas and a personal pension alongside your FS one. As you could live off these for 5 years instead, so as to not have to reduce your pension when you finally take it.

cyclonebri1

Lokolo wrote: »

No, he wants to be the bloke who can retire comfortably at a 'young' 55. And to do so is making the most of his (or her?) age now by planning for the future.

My grandparents are mid 60s, been retired for 5-8 years (depending on which one we are talking about). They do numerous activities, go on 4-5 holidays a year and enjoy every moment.

I doubt they were thinking when they were younger "oh lets not plan ahead". Better to be a rich 70 year old than a poor 60 year old.

:rotfl::rotfl::rotfl:

Well of course that goes without saying, it's a poor analogy to be honest, you ignore the factor that we die, and every day we live increase the risk that we die tomorrow.

More like; would you sooner be a poor but actively alive 70 year old, or a nearly dead but rich 69 year old;);)

cyclonebri1

ShootForTheMoon wrote: »

Indeed... The aim is to not have to work after the age of 55 at all.
By no means am I wanting to die rich, just to maintain a lifestyle that I enjoy - adventure holidays, hobbies, eating out, decent car etc...

I've sought lots of guidance since posting which has been very helpful. In theory, I shouldn't need to have an additional "safety net" although the terms of our pension have changed very recently - meaning we pay more - for less in the end!! There's nothing to say that this couldn't happen again in the future - it would be foolish to think that it will not change again in the next 30 years I have left to serve...

Overall, I think the suggestion of a S&S ISA suits me best at this point - thanks all for your input and opinions - it's much appreciated!!

Jueeeees, I sound like the eternal pessimist but, figure in that 30 years could be 30 months/weeks/days/hours/minutes .......

jojo1964

A problem I have with a pension pot is that my pension pot with my present employer rose 14% over the last 12 months, but my projected annual pension dropped from over £5000 a year to just over £4000 a year, so size doesn't always matter.