Pensions? Increasing payments?
Discussion
I know its a difficult question...
What are peoples thoughts on this?
We are at that point where the payments need to start ramping up - and I just don't know what to do for the best for the future.
My issue is, if I put the money into "cash" savings - no matter what happens to me that money will remain.
If I die soon after retirement, then its gone. Ok, my wife would get the widows payment - but that's only 50% IIRC, and if she was then to die early too its just gone.
If I put the money into my own savings then its always there - and I can draw on it when I feel like.
The other issue is my pension will be taxed - where as with savings its only interest.
And lastly, once we are gone we can leave that money to who ever we want rather than it just going into the pot.
Do I have the right end of the stick here?
I have always increased my pension payments each year - but this year I am tempted to put that increase to one side.
I would still keep my current payment as is - because I know I have to plan for the "what ifs" but I am starting to think a 50/50 approach may be better?
Or is there something I am missing?
??
:/
What are peoples thoughts on this?
We are at that point where the payments need to start ramping up - and I just don't know what to do for the best for the future.
My issue is, if I put the money into "cash" savings - no matter what happens to me that money will remain.
If I die soon after retirement, then its gone. Ok, my wife would get the widows payment - but that's only 50% IIRC, and if she was then to die early too its just gone.
If I put the money into my own savings then its always there - and I can draw on it when I feel like.
The other issue is my pension will be taxed - where as with savings its only interest.
And lastly, once we are gone we can leave that money to who ever we want rather than it just going into the pot.
Do I have the right end of the stick here?
I have always increased my pension payments each year - but this year I am tempted to put that increase to one side.
I would still keep my current payment as is - because I know I have to plan for the "what ifs" but I am starting to think a 50/50 approach may be better?
Or is there something I am missing?
??
:/
Its a private pension.
I have an appointment in 2 weeks to see my IFA (who also manages my pension). Kind of wanted some info before then so I can ask the right questions. I cant say my confidence levels are high - because in the past we have made investments with him which have turned out to be not very good to say the least.
The only thing I lose out on by not increasing is the extra TR on the pension - but do the other benefits outweigh the TR?
I have an appointment in 2 weeks to see my IFA (who also manages my pension). Kind of wanted some info before then so I can ask the right questions. I cant say my confidence levels are high - because in the past we have made investments with him which have turned out to be not very good to say the least.
The only thing I lose out on by not increasing is the extra TR on the pension - but do the other benefits outweigh the TR?
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