Saving outside the pension

Itsme01x

All rates are below the rate of inflation, but you have the certainty. As you get older* certainty brings relief and mindfulness (*and some younger people)

Pat38493

Itsme01x said:

All rates are below the rate of inflation, but you have the certainty. As you get older* certainty brings relief and mindfulness (*and some younger people)

old proverb say - certainty is only an illusion - there is no certainty.

In this case meaning that since you have no idea what inflation will be in the future, it could be that this path ends up worse than many others you can take.

RogerPensionGuy

To mention if a person has just stopped paid employment and we enter a nuclear winter and their DC falls a lot and they wish to leave DC pot alone to recover. 

Having stuff outside like a mini cash ISA maybe of use during this time.

I'm always planning my DC pot will fall by 33% and stay there for 3 or 4 years and will probably just leave it alone until the weather warms up or I absolutely need it.

QrizB

Itsme01x said:

I have just seen that Nat West/RBS are offering 5.9% interest on a 2yr Fixed Cash ISA.  Transfer ins allowed.  I would keep the flexibility of a Cash ISA with rates offering these good rates.

On the other hand, despite all the ups and downs of the past 12 months VWRL is up 8% over the period.

Itsme01x

Timing the market - if you invested 12 months ago.  The lesson is to have a number of different pots - and depending on your own circumstances and level of risk you are comfortable with. 

And certainty is 5.9% over 2 yrs compounded @Pat38493

GazzaBloom

RogerPensionGuy said:

To mention if a person has just stopped paid employment and we enter a nuclear winter and their DC falls a lot and they wish to leave DC pot alone to recover. 

Having stuff outside like a mini cash ISA maybe of use during this time.

I'm always planning my DC pot will fall by 33% and stay there for 3 or 4 years and will probably just leave it alone until the weather warms up or I absolutely need it.

You can easily hold cash inside a DC pension or a money market fund alongside more volatile assets, it doesn't  need to be outside a pension

Itsme01x

QrizB said:

Itsme01x said:

I have just seen that Nat West/RBS are offering 5.9% interest on a 2yr Fixed Cash ISA.  Transfer ins allowed.  I would keep the flexibility of a Cash ISA with rates offering these good rates.

On the other hand, despite all the ups and downs of the past 12 months VWRL is up 8% over the period.

My Google Finance app shows it as up 5.72% over the 1Yr.  I am in the UK so currency exchange may come into play.

RogerPensionGuy

GazzaBloom said:

RogerPensionGuy said:

To mention if a person has just stopped paid employment and we enter a nuclear winter and their DC falls a lot and they wish to leave DC pot alone to recover. 

Having stuff outside like a mini cash ISA maybe of use during this time.

I'm always planning my DC pot will fall by 33% and stay there for 3 or 4 years and will probably just leave it alone until the weather warms up or I absolutely need it.

You can easily hold cash inside a DC pension or a money market fund alongside more volatile assets, it doesn't  need to be outside a pension

To note until now, people may not of wanted to consume X % of LTA when drawing out at various times, I had certainly planned to only chunk out % of my LTA when it suited me.

Presently due to the silly historical treatment of the LTA, AA, MPAA and IHT flexibilities I planned as best I thought trying to future proof possible changes. 

So for myself I decided to keep cash outside of pension schemes to help me if required. 

If for example the LTA was reintroduced in short order at low levels I would hopefully be able to use a protection of sorts and if that were to occur, I would probably let pensions cook and compound.

I like keeping various routes open and available if I feel it's a reasonable and balanced path.

noclaf

I have at least 15 years to go before retirement and recently reduced work pension contributions to the minimum needed to receive max employer contributions...primarily to build up investments outside pensions.
Whilst the pensions are the most tax efficient option in my case (hrt payer) I am not deluded enough to either assume I can maintain my current earning levels for the next 15 years or that my job security is guaranteed..others may have that level of security if they are working in a niche area or own a business etc In my line of work, the rug can get pulled out from underneath very quickly so currently split S&S ISA Vs Pensions contributions 25/75 though in some cases the pension contributions might be increased further where possible e.g: as I get closer to retirement and once I am more comfortable that I have enough investments/savings outside of the pension to act as a bridge to retirement should I need it.

Albermarle

Itsme01x said:

QrizB said:

Itsme01x said:

I have just seen that Nat West/RBS are offering 5.9% interest on a 2yr Fixed Cash ISA.  Transfer ins allowed.  I would keep the flexibility of a Cash ISA with rates offering these good rates.

On the other hand, despite all the ups and downs of the past 12 months VWRL is up 8% over the period.

My Google Finance app shows it as up 5.72% over the 1Yr.  I am in the UK so currency exchange may come into play.

That is just the price increase, not including Dividends I think. The one year trailing return is 7.27% in GBP.