Is anyone else not bothering with pension planning?

[sidicks]

Brave Fart said:

I guess if you're a higher rate tax payer then your 60k becomes 100k, plus if your employer matched your contribution completely that's another 60k, making 175k including the starting 15k. Growth from 175k to 200k is very believable over the last two years.

See, this is where I don't get the people who say "property - much better than pension funds". If you are a higher rate taxpayer with employer matching then DC pensions are nigh on unbeatable I'd have thought.

It also doesn’t make sense as you would be comparing an asset class with a tax efficient investment wrapper, but another asset class!

[superlightr]

Brave Fart said:

See, this is where I don't get the people who say "property - much better than pension funds". If you are a higher rate taxpayer with employer matching then DC pensions are nigh on unbeatable I'd have thought.

doesn't help the self employed. But yes otherwise what's not to like with another person contributing.

Wish I had an employer who would match my payments in or even make any payments in but as self employed I don't.
Hence why I think for me properties and paying off mortgages early is good.

[GingerMunky]

OzzyR1 said:

Sounds nuts to me, am I the only one here or are you all paying thousands a month into future planning and laughing at me when I'm in penury in 30 years time?

Obviously I understand the benefits of long-term compound interest but at the same time think what's the point in not living in the moment. My wife and I spent 2 weeks in Vietnam in early 2016, travelling overland from Hanoi down to Hoi An via Halong Bay, Da Nang etc. Also later in the year had a fortnight in Borneo volunteering at an Orang sanctuary which was great.

I think spending our "spare" cash on travelling now while still relatively young is worthwhile - want to go trekking in Peru next year and while I hope I can still do it in my 70''s I'm not chancing it!! If I reach that age, I'll probably just want sit in my favourite chair so that £1K/month should be OK.

I'll have memories too, really good ones.

Edited by OzzyR1 on Sunday 12th February 04:00

I am one of those that saves and saves for a rainy day, and for a good retirement. But on reflection you may have it the right way around and I've got it wrong. You did all your travelling and gaining experience when you were fit and able, sounds awesome. I was just reading another thread in the Aston Forum with countless examples of people promising themselves their dream car when they retire, only to die before they get there. Maybe you are doing the right thing and everyone else has been conditioned into a distorted perspective of future planning.

[sidicks]

GingerMunky said:

OzzyR1 said:

Sounds nuts to me, am I the only one here or are you all paying thousands a month into future planning and laughing at me when I'm in penury in 30 years time?

Obviously I understand the benefits of long-term compound interest but at the same time think what's the point in not living in the moment. My wife and I spent 2 weeks in Vietnam in early 2016, travelling overland from Hanoi down to Hoi An via Halong Bay, Da Nang etc. Also later in the year had a fortnight in Borneo volunteering at an Orang sanctuary which was great.

I think spending our "spare" cash on travelling now while still relatively young is worthwhile - want to go trekking in Peru next year and while I hope I can still do it in my 70''s I'm not chancing it!! If I reach that age, I'll probably just want sit in my favourite chair so that £1K/month should be OK.

I'll have memories too, really good ones.

Edited by OzzyR1 on Sunday 12th February 04:00

I am one of those that saves and saves for a rainy day, and for a good retirement. But on reflection you may have it the right way around and I've got it wrong. You did all your travelling and gaining experience when you were fit and able, sounds awesome. I was just reading another thread in the Aston Forum with countless examples of people promising themselves their dream car when they retire, only to die before they get there. Maybe you are doing the right thing and everyone else has been conditioned into a distorted perspective of future planning.

Maybe there’s a half-way house between these two extremes...!

[Jockman]

sidicks said:

GingerMunky said:

OzzyR1 said:

Sounds nuts to me, am I the only one here or are you all paying thousands a month into future planning and laughing at me when I'm in penury in 30 years time?

Obviously I understand the benefits of long-term compound interest but at the same time think what's the point in not living in the moment. My wife and I spent 2 weeks in Vietnam in early 2016, travelling overland from Hanoi down to Hoi An via Halong Bay, Da Nang etc. Also later in the year had a fortnight in Borneo volunteering at an Orang sanctuary which was great.

I think spending our "spare" cash on travelling now while still relatively young is worthwhile - want to go trekking in Peru next year and while I hope I can still do it in my 70''s I'm not chancing it!! If I reach that age, I'll probably just want sit in my favourite chair so that £1K/month should be OK.

I'll have memories too, really good ones.

Edited by OzzyR1 on Sunday 12th February 04:00

I am one of those that saves and saves for a rainy day, and for a good retirement. But on reflection you may have it the right way around and I've got it wrong. You did all your travelling and gaining experience when you were fit and able, sounds awesome. I was just reading another thread in the Aston Forum with countless examples of people promising themselves their dream car when they retire, only to die before they get there. Maybe you are doing the right thing and everyone else has been conditioned into a distorted perspective of future planning.

Maybe there’s a half-way house between these two extremes...!

I'd also question why anyone would dream about a car. Then again, this is a motoring site

[sidicks]

Jockman said:

I'd also question why anyone would dream about a car. Then again, this is a motoring site

Really?

[Jockman]

sidicks said:

Jockman said:

I'd also question why anyone would dream about a car. Then again, this is a motoring site

Really?

I dream about other things.

[oyster]

Brave Fart said:

oyster said:

I'd say since 2015 the fund it's in has not increased any more or less than the general market.

It's the tax wrapper and employer matching that's really made the biggest difference.

I guess if you're a higher rate tax payer then your 60k becomes 100k, plus if your employer matched your contribution completely that's another 60k, making 175k including the starting 15k. Growth from 175k to 200k is very believable over the last two years.

See, this is where I don't get the people who say "property - much better than pension funds". If you are a higher rate taxpayer with employer matching then DC pensions are nigh on unbeatable I'd have thought.

My employer only matches up to 6%. It's things like employer NI savings going into the pot. No loss of child benefit. Use of married tax allowance. Child tax credit also made a contribution.

[Brave Fart]

In that case well played Oyster! And it just reinforces my point that the incentives to save within a pension "wrapper" just aren't there for things like BTL and other business opportunities (and Sidicks is right to point out they are different risk categories anyway).

Mind you, the stock market falls yesterday appear rather painful for pension funds; oh well, long term view and all that!

[sidicks]

Brave Fart said:

In that case well played Oyster! And it just reinforces my point that the incentives to save within a pension "wrapper" just aren't there for things like BTL and other business opportunities (and Sidicks is right to point out they are different risk categories anyway).

Mind you, the stock market falls yesterday appear rather painful for pension funds; oh well, long term view and all that!

It’s nothing to do with ‘risk categories’. It’s like comparing a bank account and a sausage roll!

[anonymous-user]

My employer puts in 20% against my max of 12%, but as I am currently overseas I can’t contribute more than 4%.

You would have to be an idiot not to max out the pension contributions, irrespective of any other commitments; 58 and I am done (30 years to go! / max contributions). Drainbrain’s BTL Solution isn’t a solution for everyone, unless you want to spend your retirement managing 1 bed flats in Glasgow, no thanks I’d rather the hassle free cash each month.

In 10 years I have enough ‘given’ to me to have bought my BTL outright whilst the BTL has returned 5-7% p.a. (Before tax / mortgage), with a capital increase of appx 5%. I have been lucky in having a good tenant and 1 for the course of 4/5 years.

I certainly wouldn’t rely on BTLs in the future especially if Labour get into power (tax, tax and tax), a diverse plan is the way forward; probably sell my BTLs off when I return and invest in something more liquid / accessible, the boom has gone and I don’t see it as a sustainable long term option! Politics won’t allow it ...