Private pension age going up from 55.....
Discussion
GAjon said:
The way I read the new access to pension pot rules is you will only be able to draw down on savings in excess of about £100k.
As you have to be able to provide yourself a pension of c£12k a year.
So state 1 is about £7k a year, so a top up of £5k is required.
To buy a £5k pension you will need about £100k.
So only if you have over that will you be able to take it as cash?
Am I reading that correctly?
Is this confirmed to be correct? I started a private pension last month, but I doubt it'll be worth 100k by the time I'm 65. If I'd known about these changes before I probably wouldn't have bothered with it.As you have to be able to provide yourself a pension of c£12k a year.
So state 1 is about £7k a year, so a top up of £5k is required.
To buy a £5k pension you will need about £100k.
So only if you have over that will you be able to take it as cash?
Am I reading that correctly?
Also, what tax will be payable on the lump sum - just income tax? Or will there be NI on top?
Where does the 100k fora 5k annuity figure come from, is that current rates? Presumably, the later you take the annuity (as dictated by these new rules), the cheaper they become?
XJ Flyer said:
If you mean by that posting my pension details on here,to prove that I took the decision to walk away from a pension because they are nothing but a rip off set up to benefit the banking sector.You'll just have to trust me on that.Unfortunately the state pension is compulsory which won't allow the same thing in that case.As for private pensions I don't see an issue just so long as freedom of choice to walk away at the point of sale or at any point,for those who choose to,remains.For those who think it's a good deal that's their choice in that case.While as I've said expect to see changes in that regard to go with the propaganda of so called 'increased life expectancy' used as an excuse to cut pension payouts.
I meant justify your fictitious claim about longevity not having increased the way the statistics show that it has....Edited by XJ Flyer on Wednesday 23 July 12:31
Edited by XJ Flyer on Wednesday 23 July 12:32
sidicks said:
XJ Flyer said:
If you mean by that posting my pension details on here,to prove that I took the decision to walk away from a pension because they are nothing but a rip off set up to benefit the banking sector.You'll just have to trust me on that.Unfortunately the state pension is compulsory which won't allow the same thing in that case.As for private pensions I don't see an issue just so long as freedom of choice to walk away at the point of sale or at any point,for those who choose to,remains.For those who think it's a good deal that's their choice in that case.While as I've said expect to see changes in that regard to go with the propaganda of so called 'increased life expectancy' used as an excuse to cut pension payouts.
I meant justify your fictitious claim about longevity not having increased the way the statistics show that it has....Edited by XJ Flyer on Wednesday 23 July 12:31
Edited by XJ Flyer on Wednesday 23 July 12:32
As I said in my case I said I'm out with good reason in my view and I'm happy that I haven't got a large pension pot sitting there for someone else's benefit.Of which the odds are I'll be long gone from this world before I get back all the money I'd put in let alone the interest owed on top.In that case the losses of the relatively small amount I've put in,before having the sense to walk away,will be bad enough in that case.Therefore so long as the element of choice remains I don't feel that I need to justify my view to the pension providers/banking sector.Or those who choose to believe their propaganda.In that just as previously some people die earlier than others and vice versa.But the idea of a private pension isn't to subsidise the banking sector or those who live longer having put less in.It is my money and I want it all back plus interest while I'm still able to enjoy it and here to spend it.Which unfortunately is the exact opposite,and goes against all the interests,of the pension providers.
Edited by XJ Flyer on Wednesday 23 July 17:15
Edited by XJ Flyer on Wednesday 23 July 17:16
sidicks said:
XJ Flyer said:
Those figures seem to confirm what I've said.Life expectancy for a newborn boy is stated as being 78.7 which in itself seems optimistic.While they're then saying that translates as 18.2 years after 65.
The figures provided,no surprise,just being unsubstantiated propaganda by the banking industry for what is effectivly a 40% cut in pension payouts.While no surprise also calling for an increase in pension contributions.I'd prefer to trust my own view.Rather than that of the bankers who obviously have everything to gain by pushing the idea of ridiculous non existent increases in life expectancy.
On Pistonheads you quite frequently get people who haven't got a clue vociferously making claims that do not stack up, but you're taking it to a whole new level...The figures provided,no surprise,just being unsubstantiated propaganda by the banking industry for what is effectivly a 40% cut in pension payouts.While no surprise also calling for an increase in pension contributions.I'd prefer to trust my own view.Rather than that of the bankers who obviously have everything to gain by pushing the idea of ridiculous non existent increases in life expectancy.
Sidicks why don't you contribute to the debate instead of coming across as someone with a permanent sneer on your face?
Kinkell said:
sidicks said:
XJ Flyer said:
Those figures seem to confirm what I've said.Life expectancy for a newborn boy is stated as being 78.7 which in itself seems optimistic.While they're then saying that translates as 18.2 years after 65.
The figures provided,no surprise,just being unsubstantiated propaganda by the banking industry for what is effectivly a 40% cut in pension payouts.While no surprise also calling for an increase in pension contributions.I'd prefer to trust my own view.Rather than that of the bankers who obviously have everything to gain by pushing the idea of ridiculous non existent increases in life expectancy.
On Pistonheads you quite frequently get people who haven't got a clue vociferously making claims that do not stack up, but you're taking it to a whole new level...The figures provided,no surprise,just being unsubstantiated propaganda by the banking industry for what is effectivly a 40% cut in pension payouts.While no surprise also calling for an increase in pension contributions.I'd prefer to trust my own view.Rather than that of the bankers who obviously have everything to gain by pushing the idea of ridiculous non existent increases in life expectancy.
Sidicks why don't you contribute to the debate instead of coming across as someone with a permanent sneer on your face?
So how have the pension industry let down lots of hard working people?
fandango_c said:
So how have the pension industry let down lots of hard working people?
Starter for 10I have a heart condition that most probably will see me off in about 3 - 5 years (unless I get a successful transplant)
Put all my medical facts to Annuity company and I would have to live for a further 15 years to just break even on the capital amount. Never mind any interest.
I call that a bit of a let-down.
55palfers said:
fandango_c said:
So how have the pension industry let down lots of hard working people?
Starter for 10I have a heart condition that most probably will see me off in about 3 - 5 years (unless I get a successful transplant)
Put all my medical facts to Annuity company and I would have to live for a further 15 years to just break even on the capital amount. Never mind any interest.
I call that a bit of a let-down.
Try other annuity companies, ones that specialises in enhanced annuities, or perhaps a broker. Alternatively, why not choose not to take an annuity?
The annuity company that you tried has a different opinion to you on your life expectancy or perhaps they place significance on what impact a successful transplant will have. You asked for a quote for a product, the quote is more expensive than your expectations, that's not a let down.
Edited by fandango_c on Wednesday 23 July 21:31
fandango_c said:
Sidicks is contributing, he's one of the few people on this thread who know what they're talking about.
So how have the pension industry let down lots of hard working people?
100k pot bought 7k annuity 20 years ago but nowadays circa 5k. Do your expert arithmetic taking inflation into account over this period and they have been halved in value whilst ftse has gained in value. A few years ago 150k pot was the minimum before you were better off than your lazy dole loving neighbour on enhanced benefits in retirement. Pension company takes 20% of fund if you move provider equating to significant reduction on retirement.So how have the pension industry let down lots of hard working people?
Kinkell said:
fandango_c said:
Sidicks is contributing, he's one of the few people on this thread who know what they're talking about.
So how have the pension industry let down lots of hard working people?
100k pot bought 7k annuity 20 years ago but nowadays circa 5k. Do your expert arithmetic taking inflation into account over this period and they have been halved in value whilst ftse has gained in value. A few years ago 150k pot was the minimum before you were better off than your lazy dole loving neighbour on enhanced benefits in retirement. Pension company takes 20% of fund if you move provider equating to significant reduction on retirement.So how have the pension industry let down lots of hard working people?
Where does the 150k pot come from? And how is the pensions industry letting people down here. The government determine benefit payments.
The 20% of funds is a better suggestion, but you do need to improve your knowledge and understanding of pensions before you start criticising them.
XJ Flyer said:
In this case,so long as the situation whereby the freedom to walk away exists,it's not a matter of those of us who choose not to believe it,needing to justify our choice to those who are pushing it and/or believe it.While it's obvious that those who are making money out of the scam have every motive to push that false idea to increase their profit margins.Usually if the seller wants to sell something it's up to the seller to make the case for the product to the satisfaction of the buyer not vice versa.
As I said in my case I said I'm out with good reason in my view and I'm happy that I haven't got a large pension pot sitting there for someone else's benefit.Of which the odds are I'll be long gone from this world before I get back all the money I'd put in let alone the interest owed on top.In that case the losses of the relatively small amount I've put in,before having the sense to walk away,will be bad enough in that case.Therefore so long as the element of choice remains I don't feel that I need to justify my view to the pension providers/banking sector.Or those who choose to believe their propaganda.In that just as previously some people die earlier than others and vice versa.But the idea of a private pension isn't to subsidise the banking sector or those who live longer having put less in.It is my money and I want it all back plus interest while I'm still able to enjoy it and here to spend it.Which unfortunately is the exact opposite,and goes against all the interests,of the pension providers.
As I suspected, lots of claims with zero evidence to support it.As I said in my case I said I'm out with good reason in my view and I'm happy that I haven't got a large pension pot sitting there for someone else's benefit.Of which the odds are I'll be long gone from this world before I get back all the money I'd put in let alone the interest owed on top.In that case the losses of the relatively small amount I've put in,before having the sense to walk away,will be bad enough in that case.Therefore so long as the element of choice remains I don't feel that I need to justify my view to the pension providers/banking sector.Or those who choose to believe their propaganda.In that just as previously some people die earlier than others and vice versa.But the idea of a private pension isn't to subsidise the banking sector or those who live longer having put less in.It is my money and I want it all back plus interest while I'm still able to enjoy it and here to spend it.Which unfortunately is the exact opposite,and goes against all the interests,of the pension providers.
Edited by XJ Flyer on Wednesday 23 July 17:15
Edited by XJ Flyer on Wednesday 23 July 17:16
Sheepshanks said:
He might know what's he's talking about but the vast majority of his posts are just having a go at people. Doesn't come across well.
The issues have been covered numerous times on here and we still get the same (false) claims from those that don't know what they are talking about and can't support their claims.So is it any wonder they my responses are terse rather than polite?!
Kinkell said:
100k pot bought 7k annuity 20 years ago but nowadays circa 5k. Do your expert arithmetic taking inflation into account over this period and they have been halved in value whilst ftse has gained in value. A few years ago 150k pot was the minimum before you were better off than your lazy dole loving neighbour on enhanced benefits in retirement. Pension company takes 20% of fund if you move provider equating to significant reduction on retirement.
Perhaps you can explain relevance of the FTSE and inflation (rather than interest rates)....Kinkell said:
100k pot bought 7k annuity 20 years ago but nowadays circa 5k. Do your expert arithmetic taking inflation into account over this period and they have been halved in value whilst ftse has gained in value. A few years ago 150k pot was the minimum before you were better off than your lazy dole loving neighbour on enhanced benefits in retirement. Pension company takes 20% of fund if you move provider equating to significant reduction on retirement.
Another reason is that we are living longer now than 20years ago so the pot is wing spread over a longer timeframe - all else being equal would mean lower per annum values. Interest rates are 0.5% v 7-10% 20ywars ago this too has a significant difference. However for people in day their 20's or 30's its utterly irrelevant you take the best deal on the table now which is a balanced portfolio for future savings pension is in that wrapper
fandango_c said:
Actual inflation over the past 20 years and anything to do with the FTSE has absolutely nothing to do with annuity pricing.
Where does the 150k pot come from? And how is the pensions industry letting people down here. The government determine benefit payments.
The 20% of funds is a better suggestion, but you do need to improve your knowledge and understanding of pensions before you start criticising them.
Inflation and Ftse are major influences in the economy yet annuity pricing choose to ignore them.Where does the 150k pot come from? And how is the pensions industry letting people down here. The government determine benefit payments.
The 20% of funds is a better suggestion, but you do need to improve your knowledge and understanding of pensions before you start criticising them.
A retired pensioner with 7.5k annuity living in his own bought council house is as well off as his retired from the dole neighbour living in his State funded council house. That's the 150k pot analogy.
My great grand parents and grand parents lived longer than my parents. Have a wander round a graveyard and there are plenty of long lived dead people from previous centuries resting in peace. Seven score and ten was life expectancy centuries ago.
My generation should be retiring earlier. The goalposts have been moved and simply saying its because we are getting older does not sit well.
Sheepshanks said:
fandango_c said:
Sidicks is contributing, he's one of the few people on this thread who know what they're talking about.
He might know what's he's talking about but the vast majority of his posts are just having a go at people. Doesn't come across well.Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff