keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Jun 17, 2024 11:48:47 GMT
LOL
talking to a friend this morning he's 55 and wants to retire in 10 years time.
he's just started paying into a private pension at £200 a month, and he can't understand why they've told him he will only get £120 or so a month out
simple maths really
he'll pay in about £24,000 if he lives to 80 then he will draw £1,500 a year for 15 years £22,500
so I asked what he was thinking he might get out his answer of £100 a week or more staggered me, struggling to get through to him that he should've started a pension at the latest by 30 if he wanted a decent return, he said he only thought about pensions in the last few years, not sure how he thinks he will pay his mortgage for 2 years on £100 a week before his state pension cuts in at 67 ( or maybe he thinks 65 is still pension age )
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adrianc
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Post by adrianc on Jun 17, 2024 11:54:51 GMT
LOL talking to a friend this morning he's 55 and wants to retire in 10 years time. he's just started paying into a private pension at £200 a month, and he can't understand why they've told him he will only get £120 or so a month out simple maths really he'll pay in about £24,000 if he lives to 80 then he will draw £1,500 a year for 15 years £22,500 so I asked what he was thinking he might get out his answer of £100 a week or more staggered me, struggling to get through to him that he should've started a pension at the latest by 30 if he wanted a decent return, he said he only thought about pensions in the last few years, not sure how he thinks he will pay his mortgage for 2 years on £100 a week before his state pension cuts in at 67 ( or maybe he thinks 65 is still pension age ) Chrissakes, this is basic financial illiteracy, verging on innumeracy. He's paying in £24k. He wants (assuming 80) £78k out, before inflation/growth/charges.
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
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Likes: 2,622
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Post by keitha on Jun 17, 2024 12:16:43 GMT
LOL talking to a friend this morning he's 55 and wants to retire in 10 years time. he's just started paying into a private pension at £200 a month, and he can't understand why they've told him he will only get £120 or so a month out simple maths really he'll pay in about £24,000 if he lives to 80 then he will draw £1,500 a year for 15 years £22,500 so I asked what he was thinking he might get out his answer of £100 a week or more staggered me, struggling to get through to him that he should've started a pension at the latest by 30 if he wanted a decent return, he said he only thought about pensions in the last few years, not sure how he thinks he will pay his mortgage for 2 years on £100 a week before his state pension cuts in at 67 ( or maybe he thinks 65 is still pension age ) Chrissakes, this is basic financial illiteracy, verging on innumeracy. He's paying in £24k. He wants (assuming 80) £78k out, before inflation/growth/charges. LOL summed up how I was feeling in a nutshell
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agent69
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Post by agent69 on Jun 17, 2024 12:38:00 GMT
LOL talking to a friend this morning he's 55 and wants to retire in 10 years time. he's just started paying into a private pension at £200 a month, and he can't understand why they've told him he will only get £120 or so a month out simple maths really he'll pay in about £24,000 if he lives to 80 then he will draw £1,500 a year for 15 years £22,500 so I asked what he was thinking he might get out his answer of £100 a week or more staggered me, struggling to get through to him that he should've started a pension at the latest by 30 if he wanted a decent return, he said he only thought about pensions in the last few years, not sure how he thinks he will pay his mortgage for 2 years on £100 a week before his state pension cuts in at 67 ( or maybe he thinks 65 is still pension age ) Doesn't work for the Treasury by any chance?
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benaj
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Pensions
Jun 17, 2024 13:40:43 GMT
via mobile
Post by benaj on Jun 17, 2024 13:40:43 GMT
I suppose he knows about he could withdraw 25% tax free at 67 and can be passed to his beneficiaries when he dies.
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Post by mostlywrong on Jun 17, 2024 20:53:11 GMT
I suppose he knows about he could withdraw 25% tax free at 67 and can be passed to his beneficiaries when he dies. Both of those options are low hanging fruit and are unlikely, in my opinion, to survive the first grasp of a future Chancellor.
MW
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Post by erniec on Jun 18, 2024 16:51:58 GMT
At 55, to quote a song: ‘it’s too late, baby, now it’s too late’
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Post by mostlywrong on Jun 21, 2024 10:50:51 GMT
There is an overall issue that pensions are overly complex and open to government sponsored abuse.
We could probably spend all day/week/month/year teasing out the problems. And get nowhere!
But that does not help people who are close to retirement.
And, talking of complexity, yes, I made 2 major mistakes with my pensions, and did not realise until too late, so that I receive less than I could have achieved.
The message is:
Your pension(s) are valuable. Make certain that you know where they are and keep all the paperwork!
MW
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benaj
Member of DD Central
N/A
Posts: 5,608
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Pensions
Jun 21, 2024 12:20:22 GMT
via mobile
Post by benaj on Jun 21, 2024 12:20:22 GMT
There is an overall issue that pensions are overly complex and open to government sponsored abuse.
We could probably spend all day/week/month/year teasing out the problems. And get nowhere!
But that does not help people who are close to retirement.
And, talking of complexity, yes, I made 2 major mistakes with my pensions, and did not realise until too late, so that I receive less than I could have achieved.
The message is:
Your pension(s) are valuable. Make certain that you know where they are and keep all the paperwork!
MW
it’s probably to change when I reach the “retirement age”. What kind of paperwork you suggest I must keep to avoid potential pensioners mistake?
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michaelc
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Say No To T.D.S.
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Post by michaelc on Jun 21, 2024 13:49:31 GMT
I suppose he knows about he could withdraw 25% tax free at 67 and can be passed to his beneficiaries when he dies. Both of those options are low hanging fruit and are unlikely, in my opinion, to survive the first grasp of a future Chancellor.
MW
67 - I thought it was 55  ?
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
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Post by keitha on Jun 21, 2024 14:13:16 GMT
Both of those options are low hanging fruit and are unlikely, in my opinion, to survive the first grasp of a future Chancellor.
MW
67 - I thought it was 55 ? LOL: don't say that he'll assume he can withdraw 25% of what his pension will be worth in 10 years time but take it now.
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Post by mostlywrong on Jun 21, 2024 14:39:22 GMT
There is an overall issue that pensions are overly complex and open to government sponsored abuse.
We could probably spend all day/week/month/year teasing out the problems. And get nowhere!
But that does not help people who are close to retirement.
And, talking of complexity, yes, I made 2 major mistakes with my pensions, and did not realise until too late, so that I receive less than I could have achieved.
The message is:
Your pension(s) are valuable. Make certain that you know where they are and keep all the paperwork!
MW
it’s probably to change when I reach the “retirement age”. What kind of paperwork you suggest I must keep to avoid potential pensioners mistake? All your payslips.
The records of any social benefits drawn such as maternity pay, unemployment benefits, etc.
All your pension(s) paperwork.
A couple of stories:
1. A long while ago, I recall having a boss who was retiring at 65 and who dropped in for a final coffee (which might have been "very strong" coffee!) with the lads. When asked how it was going, he complained bitterly that he had not been able to access his state pension because "he didn't exist". His Irish surname of multiple apostrophes and capital letters had, apparently, confused the mainframe. He was sanguine that it would be sorted as he had the payslips but he told us that it was a pain.
2. A while ago, an FT reporter, IIRC, wrote an article that summarised her successful fight with HMRC to prove that she had paid her NI contributions for years. She had kept her payslips as well. HMRC blamed the situation on "the relevant microfilm which had not been scanned".
3. A more recent newspaper article described another reporter who had managed to claim a German pension for her 5 years spent in West Germany, 3 of which were at university and 2 spent working. Again, she had kept the paperwork! And the Germans love their paperwork!
As do the Brits. Keep your paperwork!
I have nearly all of my payslips, although some of them have faded.
They make for fascinating reading!
But only for me...
MW
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adrianc
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Post by adrianc on Jun 21, 2024 14:41:16 GMT
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Post by mostlywrong on Jun 21, 2024 14:41:37 GMT
Both of those options are low hanging fruit and are unlikely, in my opinion, to survive the first grasp of a future Chancellor.
MW
67 - I thought it was 55 ? Dr G and PensionBee show:
The State Pension age is increasing and it's set to reach 67 by 2028. The age at which you can access your private pensions is 55, and is expected to rise to 57 in 2028.
I thought both decisions were done and dusted but that wording suggests otherwise.
MW
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Post by mostlywrong on Jun 21, 2024 14:42:23 GMT
A slightly more recent innovation that did not work for me!
MW
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?