Apparently pensions aren't worth it?

fred246

Every time I've invested in a BLT it has lost 100% of it's value within a few minutes.

seven-day-weekend

OldMusicGuy wrote: »

It's really easy to start a pension, it's not a minefield and it's very straightforward. What is more complicated (and will take more thought and research) is how you invest the money you put in the pension. That's the part that many people find a bit confusing/concerning. And that's where the default position of "I don't trust the stock market but am happy to buy property because I can touch it" usually comes in to play.

There's some good basic information here: https://www.moneyadviceservice.org.uk/en/pensions-and-retirement

I found this book helpful: "DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning" by John Edwards.

Do refer to the linked post that xylophone quoted earlier.

That's exactly how my husband and I thought when I received a sizeable inheritance. (We were already retired, with pensions). My husband, especially, did not want to consider stock market investments, because he thought you could lose too much. We bought a new-ish apartment which brings us around 5% nett and will always be there.

As to the OP, he is in a different position, he needs to pay into a pension.

Pennywise

Malthusian wrote: »

"Talking you through how it works" is generic guidance, not advice, and any accountant worth their salt should be able to demystify pension tax relief.

As I said, the accountant's job is to explain the tax relief.

Yes, many accountants, including myself as I used to give pension advice, know all there is to know about pensions, but are prevented from giving "advice" due to FCA regulations. I also don't think clients want to pay me my hourly rate for telling them some generic pension advice when they could pay the same (or less) for a IFA to give them the proper advice they need.

kidmugsy

seven-day-weekend wrote: »

. We bought a new-ish apartment which brings us around 5% nett and will always be there.

"Always be there" until that nice Mr Corbyn swipes most of its value. After all, that's what nice Mr Lloyd George did a century ago.

MEM62

kidmugsy wrote: »

"Always be there" until that nice Mr Corbyn swipes most of its value. After all, that's what nice Mr Lloyd George did a century ago.

I rent a property. It was not bought as a BTL but was my home for 29 years before I bought a place with my girlfriend. (We decided to keep it for a number of reasons) The return on it is around 4% so I am currently happy to let it sit there for now. However, if a Corbin government ever gets into power it's going to be sold as quickly as I can get rid of it and, hopefully, before he has a chance to shaft me.

kidmugsy

MEM62 wrote: »

I rent a property. It was not bought as a BTL but was my home for 29 years before I bought a place with my girlfriend. (We decided to keep it for a number of reasons) The return on it is around 4% so I am currently happy to let it sit there for now. However, if a Corbin government ever gets into power it's going to be sold as quickly as I can get rid of it and, hopefully, before he has a chance to shaft me.

How will you sell it when everyone else is trying to sell too?

seven-day-weekend

kidmugsy wrote: »

"Always be there" until that nice Mr Corbyn swipes most of its value. After all, that's what nice Mr Lloyd George did a century ago.

Yes, nice Mr Corbyn could well do that. But then again he could generate a swingeing tax on any other investments I may have as well. I fully expect to have to rethink my options if there is any danger of a Marxist/Labour Government.

There is always the Bank of Mattress....

Silvertabby

“ Or ask your mates which is better pensions or BLT?
Originally posted by Anonymous101

“ The answer depends on whether they are hungry or not, I guess.
Originally posted by Drp8713

Anonymous101 wrote: »

:money: A BLT is never a bad investment!

Not for veggies/vegans !

dont_use_vistaprint

I never bothered with a private pension until 2 years ago and I'm much older than you ! I was dead against locking money away and making it inaccessible until I'm old and its growth at the mercy of others performance. I used any money I made to travel, start businesses, buy properties and give my kids what they needed to get good careers , start businesses etc. I prefer to use money than hoard it away entrusted with dodgy boards/execs of large companies.

Everyone here will likely tell you that's wrong and get yourself a pension.

My take on it is with HR tax relief I think its maybe not a bad idea to have one, it reduces your tax bill and also you can access the money at 55 (i think?), so see it as a 18 year tax free investment rather than a pension! I'm just not convinced the ROI is anyway near as good as good property investments.

MallyGirl

As someone who has had to sell a flat in a negative equity situation - I will take the 40% tax plus 2% NI benefits of pension contributions any day.

As someone of 51 1/2 I'd also like to say that 55 is not old