Pension contributions are tax free though so they aren't taxing you on something you've paid tax on.
This is where it's all gone pear shaped with private pensions too, we have a generation where many finished work with very good final salary pension, retired early and have gone on to live longer than previous generations. Many of those people have also lived through years of inflation so values of properties they own have risen almost exponentially.So many are cash rich. Many companies have stopped the final salary pensions due to shortfalls
You can't plan when you are born and I heard a very apt phrase on the radio today "You have to work with the world we have not the one we would like it to be"
I might be off the mark but tax relief on private pension whilst paying in but hit for tax when you draw it out. No win.
Anyone here done something different for a pension pot like playing the money markets, stocks and shares or property , and has it worked out ?
In a fashion...I have an IFA doing it for me and hes done very well over the past 10 years or so....but back then the FTSE was 4000 its now 7000 so most shares have done well....but some better than others
Stick to big names, you can't go wrong: Woolworths, Comet, BHS, Maplin, Debenhams ...
I'm not sure what the basic is, I get a bit extra for SERPS contributions during the times I was contracted in.
I do have two other pensions plus a plan where I am that will be a cash pot. We'll not starve
When you get it through do NOT ignore it. If there is something wrong, you’ll want it dealt with asap - trust me, I know !!
told my 2 son's to put as much as they can afford into their company pension because by the time they get to 70 there will be no state pension like today.
glad to say both have taken note and both will retire one at 65 the other 60.
A pal religiously paid a fair whack of his wages/salary over the years into a private pension scheme.
Even with an IFA 'running it' , he reckoned when he retired the pot was worth roughly half of what had been paid in over the period.
Back in 2000 I borrowed against the equity on our house and bought a villa on the Costa del Sol. The summer lettings paid the mortgage for the year so it effectively cost us nothing. I sold it just before the financial crash in 2008 and made enough to pay off the loan and the mortgage on our uk house. Not sure if it would work as well these days but I will give it a try.
The way my parents made a bit of cash was to buy a grubby house in a decent area, tidy it up, decorate and sell at a profit to buy the next one. As the houses were our main (and only) residence the profit was free from capital gains tax.
Hi, Ahh, the usual financial industry disclaimers 'the value of a fund can go down as well as up' and ' past performance is no indication of future performance' demonstrated there.
I remember challenging one providing over poor performance by saying "I could have just put it under the bed, at least I would have had a layer of dust to show for it"
A woman we know said that she wouldn't do it as it was degrading. We replied so much easier to use a colostomy bag and she changed her mind.
Up to a limit
It's probably on 18 years a go you could buy properties on the developements near the parks in Florida for £80K and that included a swiming pool. I knew someone who bought one and they were guaranteed 40 weeks rent a year. One the spare weeks they would book a couple of weeks off work and the wife would watch the Teletext deals on the Friday. They would then just travel to whichever airport had the flights which sometimes wasn't till the Monday. By doing that they were getting fly/drive sometimes for £150. In those days you filled the visa waiver form in on the plane 30mins before you landed.
The problem for many is the fact you have to have the cash available and if you are already maxed out on a mortgage payment it's difficult to borrow even if you have equity.
He should be able to get compensation for such poor performance if he was paying a properly qualified advisor to manage it - and the advisor should be insured to provide that compensation.
I paid into a company scheme for just shy of 20 years, the scheme didn't make much in interest but the company matched my contributions up to 8% and later 10% so I got a good return even without much fund growth. When I left I transferred it all into a private scheme which will deliver better growth - I'm generally seeing about 14% per year in fairly aggressive funds (well aggressive in pension fund terms) but there has been the odd year where I've seen a loss. When I get closer to retirement I'll watch for a high point and move it into more conservative funds which won't grow much but almost certainly won't see a drop. I'm still paying into the private scheme. I'm also paying a small amount into the new companies scheme as they match my contributions but to a lower level - I'm paying the minimum I can to get the maximum out of them as it's free money even if I can't put my hands on it till I'm 55.
I'm on track to be able to comfortably retire at 55 but I'll probably phase that and drop to part time a good few years before that.
Hi, You can't get compensation for poor performance, which is why they come out with their disclaimers I mentioned above. Only poor advice or service, like getting your attitude to risk wrong or advising wrongly.
Well done to you, and good on her - hope she's ok.
I wasn't old enough to for the sample kit, just made an off the cuff remark to my doctor and hey presto camera where the sun don't shine, scans, 12" of bowel removed, seven months/eight cycles of chemo (yuk), mores scans, blood tests, more cameras etc - thankfully no bag, but three years on and thankfully no sign of the 'big C'.
Everyone needs to wise up to this, with 1 in 2 people being diagnosed with cancer, its not degrading, it's a life saver
To quote a man with pointy ears, "live well and prosper".
My wording was perhaps iffy - no you can't get compensation for poor performance. You can be compensated for poor management and to see such bad performance over a long period is surely mis-management or more likely non-management i.e. the advisor has put it in a fund and not kept their eye on the ball to move it when performance became poor. I've heard so many people saying that their pension pots haven't performed well and when asked about them it turns out that they got advice once when they first joined a pension scheme of some sort and then just left it on auto-pilot for decades. By the time they start looking at it again it's too late or the time needed to rectify it means they are working till they are too old to enjoy it.
The company I use monitor their range of funds to watch for red-flags. Poor performance in the short term won't immediately make them move cash out of those funds because if you are buying units in the funds a low value means you get more for your money and works to your advantage if they do pick up in the future - Sept 11th gave me a huge boost as did the big crash in 2007 because my monthly contribution was buying more units which have mostly come back up in value in subsequent years. That's where the skill comes in as just switching it to a fund that's performed well in the last three months could be done automatically. So long as nothing changes I have a review every 2 years where they will re-assess the stuff they manage for me plus everything else against my stated goals and attitude to risk and give me advice accordingly. In the early days I paid for the service but nowadays they get far more by taking a few percent of the growth - they've made me many times the money that I've paid them over the years.
Given the position I've described for myself you might be thinking "yeah, yeah but I don't get paid enough to put that much money away" - I've never been paid as much as the UK national average wage (and always been a good chunk under it), I've always been an employee so no cooking books or tax avoidance loopholes as a contractor and apart from 1997 where I averaged 56 hours per week as a security guard I've not had to work silly amounts of overtime. Time and good advice/management have been the key.
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