I cannot work from home I work for the NHS

TheAble

Aranyani said:

TheAble said:

You don't need to set aside all that much to accumulate a decent pension. £200/month from age 21 to 58 in a broad based low cost index fund and you'll have half a million waiting around to party for you.

That's an impossible amount for lots of people.

For some maybe, but not for most.
The contribution is pre-tax remember. Even if you scale it down to £100/month you'll still end up with over £200k at age 58. You'll also of course get the state pension on top of that, a few years down the line.

mattyprice4004

TheAble said:

No extra tax relief unfortunately. I've always thought too that commuting costs etc should be tax deductible, as is the case for the self-employed, but that's not going to change any time soon.

Oh how I wish that was the case, but alas not. 

We have to pay that out of our own pocket just like you  

TheAble

mattyprice4004 said:

TheAble said:

No extra tax relief unfortunately. I've always thought too that commuting costs etc should be tax deductible, as is the case for the self-employed, but that's not going to change any time soon.

Oh how I wish that was the case, but alas not. 

We have to pay that out of our own pocket just like you  

Yep my bad sorry! Hadn't realised.

mattyprice4004

TheAble said:

mattyprice4004 said:

TheAble said:

No extra tax relief unfortunately. I've always thought too that commuting costs etc should be tax deductible, as is the case for the self-employed, but that's not going to change any time soon.

Oh how I wish that was the case, but alas not. 

We have to pay that out of our own pocket just like you  

Yep my bad sorry! Hadn't realised.

Every day’s a school day - I didn’t know either until my accountant gave me a rollocking for putting it on my return!  

ToxicWomble

My “gold plated” pension which I started paying into at 21 currently costs me £335 a month (9.3%) deducted from my pay which if I took at 58 would pay out ~£11k a year — is that really that gold plated ??
At 67 ~£22k (as already stated though, very few last  that long)
 I honestly don’t know how that matches up to other schemes.

billy2shots

ToxicWomble said:

My “gold plated” pension which I started paying into at 21 currently costs me £335 a month (9.3%) deducted from my pay which if I took at 58 would pay out ~£11k a year — is that really that gold plated ??
At 67 ~£22k (as already stated though, very few last  that long)
 I honestly don’t know how that matches up to other schemes.

The NHS Pension Scheme employer contribution rate increased on 1 April 2019 from 14.3% to 20.6%, plus an employer's levy of 0.08%.

www.nhsbsa.nhs.uk › employer-con...

Employer contribution rate arrangements to remain for 2020/2021 | NHSBSA

For context the employers rate for workplace pensions in the private sector stands at 3%. 

ToxicWomble

Yes I know the employer contribution is different but I was wondering how the employee contribution compared to the projected return .
So for anyone NOT In The NHS paying £330 a month - what would their projected annual pension be at 58 and 67

Andy_L

ToxicWomble said:

Yes I know the employer contribution is different but I was wondering how the employee contribution compared to the projected return .
So for anyone NOT In The NHS paying £330 a month - what would their projected annual pension be at 58 and 67

Since the employers contribution is about twice that you could ballpark the number as being 1/3rd of the NHS pension so, in the example given, £3.5 or £7k.

ToxicWomble

TheAble said:

You don't need to set aside all that much to accumulate a decent pension. £200/month from age 21 to 58 in a broad based low cost index fund and you'll have half a million waiting around to party for you.

So this is incorrect then ?

TheAble

No it's correct. Just plug the numbers into a compound interest calculator using 7% as the interest rate. That's a reasonably conservative measure of the long term stock market average.