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  • FIRST POST
    • MSE Guy
    • By MSE Guy 9th Oct 12, 8:34 PM
    • 1,628Posts
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    MSE Guy
    Pension need to knows Official MSE Guide Discussion
    • #1
    • 9th Oct 12, 8:34 PM
    Pension need to knows Official MSE Guide Discussion 9th Oct 12 at 8:34 PM


    This discussion's specifically to discuss the new MSE Pension Need to Knows Guide.

    Click Reply below to discuss it
    Last edited by MSE Andrea; 22-10-2012 at 10:24 AM.
Page 9
    • AnotherJoe
    • By AnotherJoe 30th Apr 18, 5:49 PM
    • 10,148 Posts
    • 11,423 Thanks
    AnotherJoe
    Apologies for not being clear. I meant too old to start now.

    My understanding from the MSE article is that I would need to contribute significantly more than 5% to make up for the years I have not been working.

    FG
    Originally posted by familyguy321
    That is crazy thinking and perhaps reflects badly upon the MSE article, which I haven't read.

    Put it this way, when you retire, you'll get a state pension, currentiy I think about £165/week.
    Would you rather just have that, or additional income ? And if you'd like some additional income the best way of getting it woudl be to get pension income and the best way to get pension income is to have someone else pay for as much of it as possible.

    So in the above example someone else posted if you put in 5% the NHS adds nearly 3x that and that ends up providing you a pension when you retire. If you work in a variety of jobs you'll end up with a variety of pensions. Suppose any one pension only forecasts it pays you £5 a week. And you never bother taking them it because £5 "isn't worth it, it's too late".

    And now say you do that 25 time s in your working life. That's an additional £100/week you are losing out on.all because "it's too late" when actually it wasn't.

    Or to put it another way you may have heard "don't let perfect be the enemy of good", eg in this case just because you can't get the perfect pension don't let that prevent you getting a good one.
    • credit_crunch
    • By credit_crunch 4th May 18, 9:31 AM
    • 1,402 Posts
    • 2,903 Thanks
    credit_crunch
    My husband is self employed and has no employees or sub contractors.
    What the best, low risk pension schemes for him to start with?
    Thinking of around £50 per month contribution.

    He has only been self employed for 2 years & previous to that his last empoyer had started a pension with Royal London when auto enrolment came in.
    Should he stick with Royal London? Or can he contribute to that with another new pension plan?

    Thanks in advance
    • dunstonh
    • By dunstonh 4th May 18, 11:25 AM
    • 93,923 Posts
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    dunstonh
    What the best, low risk pension schemes for him to start with?
    A pension is just a wrapper for what you put inside it. There is no low risk pension schemes as you do not attribute risk to a pension. It is the investments you use that carry the risk and virtually all pensions have investments that cover the typical risk scales.

    Thinking of around £50 per month contribution.
    That very low contribution eliminates a good number of providers straight away. It's half the minimum contribution of most.

    Is that really all that he can afford? its a token amount. Peanuts basically. And if you pay in peanuts, you are going to get back peanuts in retirement. For context, if you pay in £50pm for 30 years then you are likely to get back £75pm in real terms for 30 years (based on your investing too low risk). Could you afford to live on £75pm + state pension in retirement?

    Is the pension contribution being made to provide an income in retirement or to allow you to tick a box to say you have a pension?
    In other words, are you treating it as seriously as you should?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • credit_crunch
    • By credit_crunch 8th May 18, 1:32 PM
    • 1,402 Posts
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    credit_crunch
    Thanks for your reply.
    I wrongly thought that all pension schemes have an element of risk.

    £100 a month should be manageable, however over the winter months his income drops so if possible would there be a provider where he can adjust his contributions? By the same token there may be months where he can put in more than £100 to try to compensate for the quieter months.

    As youíve probably gather I or we are pretty clueless & donít know where to start!
    • emmamed
    • By emmamed 7th Aug 18, 3:08 PM
    • 746 Posts
    • 8,679 Thanks
    emmamed
    firstly sorry if this is the wrong section to post this.

    i am not working but want to start paying into a pension. i am 42 and got a small work pension which when i checked is worth £50 a month. i am wanting to start a private pension and pay in at least £100 a month, but the scheme has to have no minimim monthly feeto be paid, just if my circumstances change. can anyone point me in the right direction on where i should go. either get a FA or use a comparision site to find best deal, tyvm
    • dunstonh
    • By dunstonh 7th Aug 18, 4:19 PM
    • 93,923 Posts
    • 61,705 Thanks
    dunstonh
    i am not working but want to start paying into a pension. i am 42 and got a small work pension which when i checked is worth £50 a month.
    Dont read anything into the income figures. They are projecting artificially lower than the real figure at this time.

    can anyone point me in the right direction on where i should go. either get a FA or use a comparision site to find best deal, tyvm
    With that amount, its probably easier and better just to add it to the existing workplace scheme. Especially if the employer does salary sacrifice.

    Comparison sites are no good for pensions and investments.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • greenglide
    • By greenglide 7th Aug 18, 9:35 PM
    • 3,142 Posts
    • 2,047 Thanks
    greenglide
    The OP, emmamed, is currently not working so salary sacrifice is out of the question.


    The old employer's scheme may not allow any further subscriptions.
    • xylophone
    • By xylophone 7th Aug 18, 9:59 PM
    • 26,121 Posts
    • 15,481 Thanks
    xylophone
    am 42 and got a small work pension which when i checked is worth £50 a month.
    Is this a deferred defined benefit pension?

    For modest contributions you might consider a stakeholder pension.

    https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/contract-based-schemes/stakeholder-pension-schemes

    https://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/aviva/

    https://www.legalandgeneral.com/retirement/our-products/stakeholder-pension/
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