Who doesn't have a pension?
Discussion
And if not, care to share why?
Recently I got reprimanded by my employerssalesman pension advisor for not having one, but to tell you the truth I have never been too concerned about it.
I suppose the main reason is a lack of understanding and partly because I half expected to be toast by now, high speed car accident or an overdose of some kind, but hey here I am.
I appreciate the tax free savings and my employers (small) contribution but I’m still not convinced, not only that but I am enjoying spending my money at the moment so I would rather not save.
As Theo Paphitis would say, I’m out
Recently I got reprimanded by my employers
I suppose the main reason is a lack of understanding and partly because I half expected to be toast by now, high speed car accident or an overdose of some kind, but hey here I am.
I appreciate the tax free savings and my employers (small) contribution but I’m still not convinced, not only that but I am enjoying spending my money at the moment so I would rather not save.
As Theo Paphitis would say, I’m out
mph1977 said:
well if you want to turn down anywhere between 2 and 14% from your employer and the tax relief well more fool you...
I appreciate it might not be the right decision, I’m just saying at this point in time I’m happy spending the money on petrol, alcohol, clothes, women and Sky TV of course 
Plenty of time for saving and investments when I grow up (mentally and physically).
You pays your money and you takes your choice. But half the comments on here are a bit like someone on Mumsnet asking "Anyone on here not have a car?" And people replying with crap like "I did once buy a car. It broke down, so I sold it and never had one again."
The only difference is that those people won't be asking me to drive them around when they're old. But most people who could afford to pay into a pension but can't be arsed will surely have their hands out come 65.
The only difference is that those people won't be asking me to drive them around when they're old. But most people who could afford to pay into a pension but can't be arsed will surely have their hands out come 65.
Sid's Dad said:
You pays your money and you takes your choice. But half the comments on here are a bit like someone on Mumsnet asking "Anyone on here not have a car?" And people replying with crap like "I did once buy a car. It broke down, so I sold it and never had one again."
The only difference is that those people won't be asking me to drive them around when they're old. But most people who could afford to pay into a pension but can't be arsed will surely have their hands out come 65.
I'm Sid's dad too. Great choice of name. Don't get many around. Right, back on topic... The only difference is that those people won't be asking me to drive them around when they're old. But most people who could afford to pay into a pension but can't be arsed will surely have their hands out come 65.
Council Scum said:
mph1977 said:
well if you want to turn down anywhere between 2 and 14% from your employer and the tax relief well more fool you...
I appreciate it might not be the right decision, I’m just saying at this point in time I’m happy spending the money on petrol, alcohol, clothes, women and Sky TV of course Plenty of time for saving and investments when I grow up (mentally and physically).
)Council Scum said:
mph1977 said:
well if you want to turn down anywhere between 2 and 14% from your employer and the tax relief well more fool you...
I appreciate it might not be the right decision, I’m just saying at this point in time I’m happy spending the money on petrol, alcohol, clothes, women and Sky TV of course Plenty of time for saving and investments when I grow up (mentally and physically).
Luke. said:
Sid's Dad said:
You pays your money and you takes your choice. But half the comments on here are a bit like someone on Mumsnet asking "Anyone on here not have a car?" And people replying with crap like "I did once buy a car. It broke down, so I sold it and never had one again."
The only difference is that those people won't be asking me to drive them around when they're old. But most people who could afford to pay into a pension but can't be arsed will surely have their hands out come 65.
I'm Sid's dad too. Great choice of name. Don't get many around. Right, back on topic... The only difference is that those people won't be asking me to drive them around when they're old. But most people who could afford to pay into a pension but can't be arsed will surely have their hands out come 65.
Great name for a child though - sort of cool but not a cliche like all the Harrys and Alfies.
Edited by Sid's Dad on Thursday 20th March 21:26
Sid's Dad said:
Luke. said:
Sid's Dad said:
You pays your money and you takes your choice. But half the comments on here are a bit like someone on Mumsnet asking "Anyone on here not have a car?" And people replying with crap like "I did once buy a car. It broke down, so I sold it and never had one again."
The only difference is that those people won't be asking me to drive them around when they're old. But most people who could afford to pay into a pension but can't be arsed will surely have their hands out come 65.
I'm Sid's dad too. Great choice of name. Don't get many around. Right, back on topic... The only difference is that those people won't be asking me to drive them around when they're old. But most people who could afford to pay into a pension but can't be arsed will surely have their hands out come 65.
Council Scum said:
I appreciate it might not be the right decision, I’m just saying at this point in time I’m happy spending the money on petrol, alcohol, clothes, women and Sky TV of course
Plenty of time for saving and investments when I grow up (mentally and physically).
I was the same as you, but happened on a job that included a decent pension - obviously in the days when such things were more common than now. Naturally I resented the money deducted, but it soon became just another bit in the fog of tax and ni.Plenty of time for saving and investments when I grow up (mentally and physically).
As I got older I started to congratulate myself on the wisdom of choosing a job with a pension....
I'll be able to afford to retire and still buy petrol.
If you're self-employed a pension is only one of many savings vehicles, and a pretty inflexible one at that (until yesterday when it got a bit better). It's all invested in the same stuff, only in an iron jacket.
Would I rather have £100K in a pension I can't get at and the result is £5 a year and I might die the day I start taking it, or £100K in something else that has equal or better performance and I can use as I see fit?
BUT you do need to save for your future, whatever the vehicle. I think there is going to be a whole world of pain in a few decades when the 'petrol, alcohol, clothes, women and Sky TV' brigade lose their jobs and suddenly have 30 years to live on pennies. I think you can be fairly sure their won't be much welfare state then around to pick up the pieces.
Would I rather have £100K in a pension I can't get at and the result is £5 a year and I might die the day I start taking it, or £100K in something else that has equal or better performance and I can use as I see fit?
BUT you do need to save for your future, whatever the vehicle. I think there is going to be a whole world of pain in a few decades when the 'petrol, alcohol, clothes, women and Sky TV' brigade lose their jobs and suddenly have 30 years to live on pennies. I think you can be fairly sure their won't be much welfare state then around to pick up the pieces.
Simpo Two said:
If you're self-employed a pension is only one of many savings vehicles, and a pretty inflexible one at that (until yesterday when it got a bit better). It's all invested in the same stuff, only in an iron jacket.
Would I rather have £100K in a pension I can't get at and the result is £5 a year and I might die the day I start taking it, or £100K in something else that has equal or better performance and I can use as I see fit?
BUT you do need to save for your future, whatever the vehicle. I think there is going to be a whole world of pain in a few decades when the 'petrol, alcohol, clothes, women and Sky TV' brigade lose their jobs and suddenly have 30 years to live on pennies. I think you can be fairly sure their won't be much welfare state then around to pick up the pieces.
The difference is that every penny paid in that £100k pension pot is tax free. Which means your pot ends up an awful lot bigger. And it's managed - hopefully - by someone who knows what they are doing.Would I rather have £100K in a pension I can't get at and the result is £5 a year and I might die the day I start taking it, or £100K in something else that has equal or better performance and I can use as I see fit?
BUT you do need to save for your future, whatever the vehicle. I think there is going to be a whole world of pain in a few decades when the 'petrol, alcohol, clothes, women and Sky TV' brigade lose their jobs and suddenly have 30 years to live on pennies. I think you can be fairly sure their won't be much welfare state then around to pick up the pieces.
Sid's Dad said:
The difference is that every penny paid in that £100k pension pot is tax free. Which means your pot ends up an awful lot bigger. And it's managed - hopefully - by someone who knows what they are doing.
You can take the premiums off your gross profit, but dividends are taxed while it is in there, and you pay tax on it when you take it out (on the awfully lot bigger pot). We would like to think they are managed by market-beating experts but it's interesting to ponder how much of one's pension fund is taken by charges over the decades. I paid into one fund for over 20 years and in that time it did about as well as a deposit account would have done. Guess where the rest went. And the more people I feed in the chain, the less I will get.One wonders what happened 100+ years ago, before pensions and finance were invented. I suppose tax was very much lower so people accumulated more naturally.
bladerrw said:
People weren't retired for very long and children tended to look after their parents.
There was also the fact that companies were expanding, so that the active population of workers was a lot bigger than the retiree population, so the funding formula worked. People also tended not to change jobs and so accumulated proper pensions over long service lives. You started work at (say ) 21 and worked to 65, lived to (say ) 72. So 40 years of contributions funded 7 years of pension.The people started to retire at 55 and live longer. Now. 30 years of work had to fund 20-25 years of pension. Also, increased mobility meant people not getting the benefit of long service. Finally, defined benefit plans were too risky for companies as the retiree population began to be bigger than the active population, so companies could not take the risk of an actuarial deficit wrecking the company. So they went defined contribution ( all risk on pensioner), or scrapped pensions.
There are many people who do not have a good plan for retirement.
Worst assumptions:
- I will work forever. :While people are living longer, older people often have chronic ailments
-my house will fund my retirement ; Of course, you can sell the house, but where will you live?
-I will get a state pension.; True but its very small.
_ Health care is free at least: True but there is a coming crisis in health care costs as the load increases, and the Gen Y folks already feel that there boomer have sucked all of the privileges that they possibly can, and are not willing to keep working to support this large generation.
If you assume a 4% real rate of return, then its not hard to figure out how much you need in investments/savings to fund your required income level. Many people are shocked just how much that is.
I have a very very small pension pot built up from various companies i've worked for over the years. It's worth about £10k at present but I'm now self employed and in a bit of a quandary.
I could pay £200 - 300 a month into a private pension direct from the business. Sure it will (hopefully) grow over the years given enough time but realistically that sort of money isn't going to scratch the surface come retirement time which worries me. I'm (as good as) 30 now so I've got a good 30 years of work left in me.
Instead of a pension I'm considering ploughing the money I would have put in into property instead maybe with the odd small shop / office and maybe some cheap buy to lets.
In reality I should probably speak to an IFA about it as it's something that has started to play on my mind.
I could pay £200 - 300 a month into a private pension direct from the business. Sure it will (hopefully) grow over the years given enough time but realistically that sort of money isn't going to scratch the surface come retirement time which worries me. I'm (as good as) 30 now so I've got a good 30 years of work left in me.
Instead of a pension I'm considering ploughing the money I would have put in into property instead maybe with the odd small shop / office and maybe some cheap buy to lets.
In reality I should probably speak to an IFA about it as it's something that has started to play on my mind.
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