Starting to save from age 33

westy22

I've looked again and the pension pot we need to aim for to be comfortable is £3m rather than £2m.

Bear in mind that HMRC have a lifetime limit for pension pot contributions of £1.25m and a maximum annual contribution limit of £40,000 pa from April 14.

opinions4u

averageish wrote: »

My course of action is to seek advice from three different professionals in January. I'll be meeting with a pension planner, a bank investment advisor, and an independent from the site suggested here. At least that way, if the three of them suggest the same thing, and it also tally's with suggestions from here, I must be heading in the right direction.

I wouldn't bother with the bank.

Just to answer a query from above, the company has an accountant and accounts are audited. We are looking to move accountant, so I am reluctant to approach regarding pensions.

It was around how to make pensions most cost efficient from a business perspective.

averageish

westy22 wrote: »

Bear in mind that HMRC have a lifetime limit for pension pot contributions of £1.25m and a maximum annual contribution limit of £40,000 pa from April 14.

Thanks westy, that is something that had not come up in my research yet. No wonder people move money off shore which is an option I will be considering also, in light of the above.

averageish

opinions4u wrote: »

I wouldn't bother with the bank.

It was around how to make pensions most cost efficient from a business perspective.

Cheers for that. The bank advisor also handles the company account so I dont think it would be worth his while giving duff advice on a personal pension would it? I realise he will likely be tied.

I'll step back and look at the bigger picture.

Thanks again.

somethingcorporate

A pension pot £3m in today's terms is completely different to a £3m pension pot in money (absolute) terms - can you be clear which you are talking about?

A £3m pot even at around 3% would give you £90k a year income and you'll have significantly lower costs in retirement. Even the ultra-generous FS pensions only give 66% of final salary and you are looking to make yours far more generous (100%+ of your current earning level). I am not knocking your plan at all, just suggesting you clarify your numbers and realise the financial commitment getting to such a figure would be.

averageish

Yes somethingcorporate, sorry. The £3m will be in money terms which would leave around £1.2m in todays terms with an income of around £44k P/A. Sorry, I should have said this.

We will probably be tired out by 65 and our outgoings will be less certainly, but I'd actually like to not have to worry about money in retirement, so I want to over fund. Aside from the ultra rich, people spend their whole lives worrying about money and it would be nice to get a few years where it does not matter anymore.

opinions4u

averageish wrote: »

Cheers for that. The bank advisor also handles the company account so I dont think it would be worth his while giving duff advice on a personal pension would it? I realise he will likely be tied.

Tied to one provider with a narrow product range and high charges.

atush

All the bank adviser can give is duff advice. So avoid him at all costs.

I'm unsure of the benefits of a pension via the company. I'm afraid of getting tied in and/or having government legislation ruin my savings!

You are throwing away free money, so join it immediately.

I have seen a financial advisor previously. However, I am extremely cynical when it comes to paid professional advisors. Some of them know less than me it seems!

It is impossible an IFA could know less than you, who has turned down 6% of your salary by not joining your company pension.

While it is fine to be cynical, it is not fine to be prejudiced and to bury your head in t he sand. From your high salary, to your stated retirement aims, you need professional advice pronto.

somethingcorporate

averageish wrote: »

Yes somethingcorporate, sorry. The £3m will be in money terms which would leave around £1.2m in todays terms with an income of around £44k P/A. Sorry, I should have said this.

We will probably be tired out by 65 and our outgoings will be less certainly, but I'd actually like to not have to worry about money in retirement, so I want to over fund. Aside from the ultra rich, people spend their whole lives worrying about money and it would be nice to get a few years where it does not matter anymore.

No problem, that does make it a lot more achievable and looks quite similar to my aims

Good luck.

averageish

MoneyInTheBank wrote: »

Hi, I hope you don't mind me asking but how did you increase your salary so greatly from 24k in 8 years? Got me feeling inspired

A combination study and work, as my qualifications increased so did my salary. No social life mind you and a working week currently somewhere around 60 hours all told. I also have to travel all over the place which means even less time to myself.

When you factor all the time in, my hourly rate probably isn't as spectacular as I'd like it to be, but I am working hard now with a view to easing off in say 15 years time.

Nice to know you felt inspired!

To atush, It's not that I turned down 6%, it only became available very recently and it is not always prudent to take such things immediately "no questions asked", especially if you're tax and retirement planning. Might be obvious to an expert, but for all I knew, that 6% could reduce an allowance elsewhere which may have been to my detriment long term.

Thanks all.