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  • FIRST POST
    • singhini
    • By singhini 8th Mar 18, 10:45 PM
    • 335Posts
    • 200Thanks
    singhini
    Life Expectancy and Pensions
    • #1
    • 8th Mar 18, 10:45 PM
    Life Expectancy and Pensions 8th Mar 18 at 10:45 PM
    I was watching "daily Politcs" today on BBC2 and it included an article on Life expectancy. In short it stated that life expectancy varied around the UK and in particular male life expectancy was 68.2 years in Bloomfield in Blackpool (the shortest) and male life expectancy in Knighsbridge / Belgravia was 89.1 years (the longest) [figures taken from Daily Politics as shown today on BBC2 8th March 2018].


    That made me think, whats the point of sticking money into my pension if im going to be dead at around 78 years old (average of the 2 figures stated above). i feel that im gonna die and the vast majority of my pension money will be stuck in the pension.


    I feel there are too many restrictions on pensions i.e. if you want to consolidate them you need a FA who charges money, if you try to take too much money out you might face tax, you cant have your money when you wany but approx 10 years before state pension age (which seems to constantly go up) etc.....


    i think the daily politics show based their news report on this article which also highlighted that life expectancy in some areas had started to actualy go down (more can be found here http://www.bbc.co.uk/news/health-43317918)


    Why are we allowing our governments to indenture us into pension slavery and torture with our own private pensions, surely we should be allowed to take our private pension when we want and with no restrictions (why this arbitrary figure of 10 years before state pension age, why cant it be aged 50 onwards).


    I then found this aticle which seems to suggest that the average person is no better off with a pension than being on state benefits (https://www.lovemoney.com/news/16879/pension-saving-benefits-flawed)


    What do others think?
Page 2
    • longleggedhair
    • By longleggedhair 9th Mar 18, 11:17 AM
    • 314 Posts
    • 383 Thanks
    longleggedhair
    From my experience, the biggest risk for most people is their 50s. I have known many people who die in their 50s but it seems if you can make it past that you've got a good chance of going onto your 80s/90s.

    I've always felt uncomfortable about investing in a pension, but I always have done as the above people say it's a no brainier financially, and as you get older and 55 becomes closer I feel less uncomfortable about the length of time it will be "locked" away.

    I have considerable investments outside of my pensions, and some company & private pensions which would be insufficient on their own. My intention is to move as much of my cash in the next few years into my pension/ISA. But you have to do what is comfortable for you.
    • Chickereeeee
    • By Chickereeeee 9th Mar 18, 11:25 AM
    • 445 Posts
    • 269 Thanks
    Chickereeeee
    Ok here is an example based on the US stock market (the only one I have 40 years of stats for)

    Lets say 40 years ago you decided to put away 80 a month into a pension and invested it in equities. The government tops this up to 100. You increased the amount slightly each year by inflation. The value of that today would be worth around 1.5 million pounds. Had you done the same without a pension then it would be worth around 300k less.

    You can do a lot with that amount of money while retired. Even if someone chose options with a lower return then its still a huge opportunity for a happy retirement.
    Originally posted by Prism
    And get taxed at 20-40% on three-quarters of that to get it back out of the pension....

    C
    • IanSt
    • By IanSt 9th Mar 18, 11:43 AM
    • 260 Posts
    • 194 Thanks
    IanSt
    I was watching "daily Politcs" today on BBC2 ...

    That made me think, whats the point of sticking money into my pension...

    I feel there are too many restrictions on pensions ...

    Why are we allowing our governments to indenture us into pension slavery and torture with our own private pensions...

    What do others think?
    Originally posted by singhini
    I think that if you do a bit more research using up-to-date articles then you might be happily surprised on how good the current pension schemes can be.

    Yes there are some limits, e.g. how soon you can access them, but they are there so that people don't abuse the system.
    • Malthusian
    • By Malthusian 9th Mar 18, 12:07 PM
    • 4,255 Posts
    • 6,702 Thanks
    Malthusian
    And get taxed at 20-40% on three-quarters of that to get it back out of the pension....
    Originally posted by Chickereeeee
    After getting 20-40% tax relief on the whole lot when you put it in? Poor you.

    Someone who got 20% tax relief (which Prism's example specified) should not be paying more than 20% tax on their pension. Quite possibly less with good planning.

    Conversely, people who get 40% tax relief frequently don't pay 40% tax on pension income, unless they have a 35k+ DB pension, which also falls squarely into the category of "nice problem to have".
    • Prism
    • By Prism 9th Mar 18, 1:55 PM
    • 368 Posts
    • 286 Thanks
    Prism
    And get taxed at 20-40% on three-quarters of that to get it back out of the pension....

    C
    Originally posted by Chickereeeee
    Well, yeah if after a lifetime of saving you blast it all in a couple of years you would pay a lot of tax. However I would assume most people would use that for a nice yearly income that doesn't touch 40% tax. Today, you could pay yourself a nice 50k per year (plus the state pension) if you so desired and and only pay 20% tax on arund 35K of it.
    • ams25
    • By ams25 9th Mar 18, 2:15 PM
    • 177 Posts
    • 210 Thanks
    ams25
    This thread really shows how so many folk don't understand the value of pensions (as a wrapper). I'm helping some friends and family at the moment to assist them, who I guess are representative of the normal majority (versus us weird folk folk who are interested in this stuff) and it is really quite worrying that so many have so little knowledge or interest in personal finance and make poor decisions as a consequence. Given the positive impact it could have on people lives it is a great shame that more is not done to change it. How do we change that I wonder....
    • atush
    • By atush 9th Mar 18, 3:04 PM
    • 16,821 Posts
    • 10,497 Thanks
    atush
    Eh? First I have heard of this. As a Northener should I be worried??
    Originally posted by Dorian1958
    You should be worried if you stick to the 'old' northern lifestyle. Which means northerners smoke more, drink more, eat less fresh veg/fruit etc.

    If you dont do these things, and you enjoy a healthy lifestyle then you shouldnt worry.
    • Terron
    • By Terron 9th Mar 18, 4:05 PM
    • 238 Posts
    • 209 Thanks
    Terron
    Eh? First I have heard of this. As a Northener should I be worried??
    Originally posted by Dorian1958
    I am also a Northerner, though my mother was Welsh. However both my parent made it into their eighties as did three of my grandparents so my genes don't seem to be a problem.
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