I don't understand pensions...

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  • GunJack
    GunJack Posts: 11,669
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    Puddylove wrote: »
    I rather wish I had just saved instead...

    Oh no you don't....the pensions will be better value...
    ......Gettin' There, Wherever There is......

    I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple :D
  • atush
    atush Posts: 18,719
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    I rather wish I had just saved instead...

    No you dont. AS a teacher/university professor surely you are not quite so silly.

    Easiest option is to add more to the DC part of USS. Find out fromt h scheme- A what it is worth today, B what it is invested in and C what other choices of investments are there.

    Is the DC pension self sacrifice?

    How much of your 40% band do you have left after the current pension contribs? If you can live on the HR band (is it 45K now?) then put th rest into a DC pension, either the USS one or a PP or Sipp.

    If you use a PP or sipp, use something simple yet diversified. So a multi asset fund (read the thread on Vanguard) or a global index tracker (there are a number of these, go for the one with lowest costs).

    The good news is, while you know nothing about pensions (or used to know nothing ;) Now you know that you managed to get 2 different DB pensions, which are the best pensions.

    Now, you need to work our your Number- go to the Number thread and read it. Everyone has a different one, so it doesnt help for us to tell you what ours is.

    Then put your current pots/contribs into a retirement calculator and see how much you need to put in extra to get to your number in retirement.
  • Puddylove
    Puddylove Posts: 507
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    atush wrote: »
    No you dont. AS a teacher/university professor surely you are not quite so silly.

    :D

    Easiest option is to add more to the DC part of USS. Find out fromt h scheme- A what it is worth today, B what it is invested in and C what other choices of investments are there.
    As far as I can work out, I have a Final Salary Scheme pension of approx £4K with £12k lump, closed 2016. From then it has become a 'Retired Income Builder' which says 1/75 of salary - but no other info. And a strange added 'USS investment Builder' which has a few hundred in - not clear how this works whe I retire but in a USS Growth Fund.
    Is the DC pension self sacrifice?
    Errrr....not sure but I do Salary Sacrifice?

    How much of your 40% band do you have left after the current pension contribs? If you can live on the HR band (is it 45K now?) then put th rest into a DC pension, either the USS one or a PP or
    a SIPP.
    Again, I don't know - my monthly salary varies, but I save a bit. Do you think I should pay more to the USS Income Builder part?

    If you use a PP or sipp, use something simple yet diversified. So a multi asset fund (read the thread on Vanguard) or a global index tracker (there are a number of these, go for the one with lowest costs).
    I may look at an ISA with Vanguard.

    The good news is, while you know nothing about pensions (or used to know nothing ;) Now you know that you managed to get 2 different DB pensions, which are the best pensions.
    In my defence at least I know that I know nothing - and had the good sense to ask parents/accountant friends 'should I pay into the TPS?' etc. :rotfl:

    Now, you need to work our your Number- go to the Number thread and read it. Everyone has a different one, so it doesnt help for us to tell you what ours is.
    Will do!


    Then put your current pots/contribs into a retirement calculator and see how much you need to put in extra to get to your number in retirement.

    Thanks for your help, atush. And Zylophone as the State Pension calculator showed me I was £13 short of ne year's NI so now paid. And everyone else - I appreciate your time.:beer:
  • atush
    atush Posts: 18,719
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    Errrr....not sure but I do Salary Sacrifice?

    ASk your employer, it means it is taken out before tax an NI as if that part of your salary never exited but instead goes into a pension. So you save an additional 2% Nics (as you pay HRT, it would be over 13% for someone who pays BR)
    Again, I don't know - my monthly salary varies, but I save a bit. Do you think I should pay more to the USS Income Builder part?

    Probably, but you could also use a PP or sipp. but using your current AVC scheme wouuld be fastest/easiest.
    I may look at an ISA with Vanguard.

    A great idea, but also pay more into pension as well as you get 100 into a pension for a cost of 60. 100 into an ISa costs 100. Both have their place in a good plan.
    In my defence at least I know that I know nothing
    You know more now?
  • LHW99
    LHW99 Posts: 4,135
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    I sympathise as my OH has a small, old USS pension. The site isn't the best.

    Nevertheless, the basic idea of a pension is you give up something now out of your current salary, that is put "somewhere" (maybe a pot of cash if a DC, or into a less well defined place if DB) and then when you are old enough and don't want to work, you can use those payments in one way or another to give you enough (hopefully) to live on.

    and as PeacefulWaters says
    Pay more in, get more out. No need to over complicate things.
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