Only freedom will do

HelenDaveKids

I find all the pension stuff so confusing. I have paid into nhs pension always and hope to finish my nursing career in 13 years at 55. We should be morgage free by Sept next year and then plan to save to buy property to do up and sell (as a retirement change of career plan together / something we've both always wanted to do)

edinburgher

They don't make it easy, do they Helen? It's no wonder so many people are confused after the recent rule changes. At least with 40ths/60ths etc., people can pretty much figure it out for themselves with one or two sums.

The world of defined contribution pensions is a completely different beast, Particularly so as the first couple of sums conducted by a vaguely intelligent individual/their financial advisor are likely to show them that they are not getting their parents' retirement! :eek:

elantan

edinburgher wrote: »

£68k? Seems awfully generous.

It's usually not recommended because the commutation factor (how many £ you lose in income for taking a lump sum) doesn't often work in your favour. A brief article on Which.

Their example (£12 for every £1 given up) is more typical. If you plan on living for longer than 12 years it strikes me as a bum deal.

yeah he does have a very good pension he works very hard for it though so...

I had looked at the commutation rates and he is better taking his pension at 60 than 65 at 60 its something like £19/£1 but at 65 its something like £18/£11 so he is by far better taking the pension at 60 have to admit though i dont have the full details to hand and am working from memory, the numbers wont be fully correct but the figures are similar to stated.

edinburgher

Nice! :beer:

ljaneyr

I think the lump sum part of teachers pensions is normal, for pensions started before a certain date anyway. For me it is not nearly so good but then I don't intend to be a teacher for ever and definitely am not working to 68 :eek:

Well, that's the plan anyway

What is SWR? Sorry to be dense :o

blackste

edinburgher wrote: »

They don't make it easy, do they Helen? It's no wonder so many people are confused after the recent rule changes. At least with 40ths/60ths etc., people can pretty much figure it out for themselves with one or two sums.

The world of defined contribution pensions is a completely different beast, Particularly so as the first couple of sums conducted by a vaguely intelligent individual/their financial advisor are likely to show them that they are not getting their parents' retirement! :eek:

DB schemes are a bloody nightmare to give people a calculation. While the 40s/60s/80s calculation is ok to give a guesstimate, you would be suprised how far out it can be. So many people change their contribution level, and forget the did it. Also there are the rule changes over the years, when the government made big changes to pensions. From memory, 1978, 1983, 1992. There are loads, and all pension have to be worked out accordingly. Then the effects of LEL, and how each scheme treats it.
Nightmare.

DC schemes are the biggest disgrace to have happened to pensions in decades. Companies now have zero liablilty for their workforce except to pay a nominal amount of money into a pension scheme for them. Employees are now expected to become investment and pension experts, or shoulder the cost of proffessional advice, as financial advice is not provided by the company offering the pension. People are expected to make decissions on their own about the biggest single investment most of us will ever make. If your in a company which still has a DB scheme open, which is closed to new members, see if you can find out the difference in burden to the company for a DB and DC member. DC members are actually being effectively paid less than their DB counterparts. Companies are saving twice, once by paying less into the DC schemes than the cost of a DB pension, and again by having no long term committment to the DC member.

Rant over.

Steve

judi24

gallygirl wrote: »

Hello fellow ENFPer :hello:

ENFP: God,help me to keep my mind on one th-Look a bird-ing at a time. :rotfl:

Hello - Its good to see another ENFPer one here our love of winging it and flying by the seat of our pants makes long term financial planning all the more challenging!!! I want to learn from sensible personality types such as INFJ's

edinburgher

What is SWR? Sorry to be dense

Sorry, personal finance chat! Safe withdrawal rate, the expected rate at which you can draw on invested capital without it being depleted. For example, if you expect your investments to grow at a real rate of 5%/annum, you might feel comfortable drawing this amount, but would still be left with your original pot at the end of the year.

Rant over.

Steve

Don't worry mate, I agree :coffee:

I want to learn from sensible personality types such as INFJ's

I want to learn how to be more involved at parties, must learn from these sociable E's!

ljaneyr

Ah, thanks! I'm learning a little bit at a time and your diary is great as I can pick things up slowly without an overload of information. That said, thinking about investing for early retirement is making my head spin a bit. I was thinking about it as I woke up this morning! My main worry is that 'early' retirement is not that far away in terms of getting all the necessary finances in place :eek:

edinburgher

Hehe - 20 years or so for me I suspect - I know what you mean