Pension Advice......

[dan1981]

Hi All,

I'm after a bit of advice regarding my new pension. I'm about to start a new job with BOC / Linde. They are offering a contributory pension which is something i've not had from my previous employee.

I have two options one called FreeChoice and one called LifePlan.

Freechoice allows me to select what percentage of my contributions i want to be put where and lifeplan has it decided for me, but i have to select a retirement age.

If i choose freechoice i have to decide what percentage I want to go into the following...

UK Equity
Global Equity
UK Gilts
UK index linked Gilts
Cash

All investments are done through Barclays Global Investors, and the funds all seem to be Aquila ones.

My options for what i put in each month are 3, 4 or 5% and the company contributes double what I put in.

I'm 27 (today) if this has any impact on anything.

I know anything anyone says on here is just given advice etc etc but i'm just looking to see what people think would be my best options.....

Thanks in advance

Cheers

Dan

Edited by dan1981 on Monday 29th September 20:21

[esselte]

Hi Dan,to save you making the wrong decision, give your contributions to me and when you've retired I'll let you have back what I've not spent...I think that's how pensions work these days....

[minimoog]

[mrobertshaw]

dan1981 said:

I'm 27 (today) if this has any impact on anything.

Not sure it does, but happy birthday, unless you just meant your current age is 27.

[bigandclever]

mrobertshaw said:

dan1981 said:

I'm 27 (today) if this has any impact on anything.

Not sure it does, but happy birthday, unless you just meant your current age is 27.

That would be a very creative 'happy birthday to me' thread and well worth going under the PH radar

[spikeyhead]

Spend the money on drugs.

You'll have far more fun and won't live to pensionable age so no need to worry about ending up dribbling your life away in a nursing home.

[Bushmaster]

Freechoice.
100% equity funds.
Put in the maximum amount.

Imagine you are your future self in 20 years time.

You will be very pleased that your old self (you now) did you such a big favour.

[dave_s13]

Fvck knows

HTH

Happy birthday though.

[esselte]

Bushmaster said:

Freechoice.
100% equity funds.
Put in the maximum amount.

Imagine you are your future self in 20 years time.

You will be very pleased that your old self (you now) did you such a big favour.

Really? 20 years ago my pension illustrations looked remakably good,now I wish I hadn't bothered...I must have financed a few red bracered business lunches...

Edited by esselte on Monday 29th September 21:37

[dibbly_dobbler]

dan1981 said:

Hi All,

I'm after a bit of advice regarding my new pension. I'm about to start a new job with BOC / Linde. They are offering a contributory pension which is something i've not had from my previous employee.

I have two options one called FreeChoice and one called LifePlan.

Freechoice allows me to select what percentage of my contributions i want to be put where and lifeplan has it decided for me, but i have to select a retirement age.

If i choose freechoice i have to decide what percentage I want to go into the following...

UK Equity
Global Equity
UK Gilts
UK index linked Gilts
Cash

All investments are done through Barclays Global Investors, and the funds all seem to be Aquila ones.

My options for what i put in each month are 3, 4 or 5% and the company contributes double what I put in.

I'm 27 (today) if this has any impact on anything.

I know anything anyone says on here is just given advice etc etc but i'm just looking to see what people think would be my best options.....

Thanks in advance

Cheers

Dan

Edited by dan1981 on Monday 29th September 20:21

Not much point in going for Lifeplan unless you're going to be there until retirement (which seems unlikey at 27) so I would go for Freechoice with max contributions - the company doubling up is a good benefit so you should make the most of it unless you really can't afford it.

It's a long term investment so stick it in equity - got to be a good time to buy !

[Simpo Two]

Bushmaster said:

Freechoice.
100% equity funds.
Put in the maximum amount.

Imagine you are your future self in 20 years time.

You will be very pleased that your old self (you now) did you such a big favour.

Except that the FTSE is now where it was in 1997... 10 years pissed up the wall. Thanks, commission-motivated bds.

Edited by Simpo Two on Monday 29th September 21:41

[esselte]

anonymous said:

[redacted]

^^ Wot Tonker said,the only reason I did it was the company contribution...

[Andy Zarse]

esselte said:

Bushmaster said:

Freechoice.
100% equity funds.
Put in the maximum amount.

Imagine you are your future self in 20 years time.

You will be very pleased that your old self (you now) did you such a big favour.

Really? 20 years ago my completely invented pension illustrations drafted by Govt regulators and forced upon an unwilling pensions industry looked remakably good, now I wish I hadn't bothered...I must have financed a few red bracered business lunches...

Edited by esselte on Monday 29th September 21:37

EFA

[esselte]

Andy Zarse said:

esselte said:

Bushmaster said:

Freechoice.
100% equity funds.
Put in the maximum amount.

Imagine you are your future self in 20 years time.

You will be very pleased that your old self (you now) did you such a big favour.

Really? 20 years ago my completely invented pension illustrations drafted by Govt regulators and forced upon an unwilling pensions industry looked remakably good, now I wish I hadn't bothered...I must have financed a few red bracered business lunches...

Edited by esselte on Monday 29th September 21:37

EFA

The thing that annoys me is that the fund management get paid whether or not my fund has inceased in value....I can lose my own money myself for free......don't get me started on annuities...

Edited by esselte on Monday 29th September 21:46

[sidicks]

esselte said:

Don't get me started on annuities...

Why not ?

[Simpo Two]

esselte said:

The thing that annoys me is that the fund management get paid whether or not my fund has inceased in value....

When I asked my IFA why I had to pay them to lose my money, they said it was because they'd had to put the work in anyway. I asked that if I'd done some photography for them, but then lost all the files, would they still pay me? After all, I'd have put the work in. Strangely, he didn't answer.

[Andy Zarse]

dan1981 said:

Hi All,

I'm after a bit of advice regarding my new pension. I'm about to start a new job with BOC / Linde. They are offering a contributory pension which is something i've not had from my previous employee.

I have two options one called FreeChoice and one called LifePlan.

Freechoice allows me to select what percentage of my contributions i want to be put where and lifeplan has it decided for me, but i have to select a retirement age.

If i choose freechoice i have to decide what percentage I want to go into the following...

UK Equity
Global Equity
UK Gilts
UK index linked Gilts
Cash

All investments are done through Barclays Global Investors, and the funds all seem to be Aquila ones.

My options for what i put in each month are 3, 4 or 5% and the company contributes double what I put in.

I'm 27 (today) if this has any impact on anything.

I know anything anyone says on here is just given advice etc etc but i'm just looking to see what people think would be my best options.....

Thanks in advance

Cheers

Dan

Edited by dan1981 on Monday 29th September 20:21

On the basis that your employer is paying in money you wouldn't get otherwise it would be nuts not to join and put in as much as you can comfortably afford. Assuming you're a 40% tax payer for every £100 you pay in you'll get £40 tax relief so will only cost you £60 out of net pay. Then BOC will pay in £200 on top. So that's £300 invested and it's cost you £60, so can one of the "all pensions are total crap" people above please explain to me how that represents a bad deal? Maybe you could invest in a buy to let property instead!

As you're not due to retire for forty odd years you can afford to probably take a chance on the FreeChoice equity funds but don't forget to swich to the Lifeplan about ten years before retirement. BGI are okay but these are probably tracker funds and it hardly constitutes a great choice; plain vanilla or what! Anyway, good luck in your career Dan.

BTW this does not constitute financial advice, however I'll email you my invoice!

[Andy Zarse]

esselte said:

Andy Zarse said:

esselte said:

Bushmaster said:

Freechoice.
100% equity funds.
Put in the maximum amount.

Imagine you are your future self in 20 years time.

You will be very pleased that your old self (you now) did you such a big favour.

Really? 20 years ago my completely invented pension illustrations drafted by Govt regulators and forced upon an unwilling pensions industry looked remakably good, now I wish I hadn't bothered...I must have financed a few red bracered business lunches...

Edited by esselte on Monday 29th September 21:37

EFA

The thing that annoys me is that the fund management get paid whether or not my fund has inceased in value....I can lose my own money myself for free......don't get me started on annuities...

Edited by esselte on Monday 29th September 21:46

Fair comment, though annuities are simply a calculation based on the return on long term gilts divided by mortality risk. Since we are in an era of low interest rates and we're all living well past the traditional four score years and ten by about twenty years, then this is hardly surprising. Income withdrawal from capital retention is the way ahead.

[Bushmaster]

anonymous said:

[redacted]

So move abroad, take the entire fund with you as tax free cash and Robert's your mother's brother. Annuity-schmuity.

[esselte]

sidicks said:

esselte said:

Don't get me started on annuities...

Why not ?

Basically I will have amassed a lump sum at the time I retire.I am then forced to give this amount to an anuity company who will give me back an amount which isn't much more than the current rate of interest I could have acheived myself...when I die the anuity co. will keep the principal which I gave them in the first place....what did I gain from this...? At least that's the way I think it works...