Pension monthly worth?
Discussion
kurt535 said:
Ty to you both.
Jesus......Id not be that happy if that was my lot. Obviously someone on a decent final salary pension Id expect to be quite happy otherwise, Im glad i didn't pay cash in.
Remember there's no compulsion to buy the annuity - you have a degree of flexibility what you do with the money.Jesus......Id not be that happy if that was my lot. Obviously someone on a decent final salary pension Id expect to be quite happy otherwise, Im glad i didn't pay cash in.
kurt535 said:
Ty to you both.
Jesus......Id not be that happy if that was my lot. Obviously someone on a decent final salary pension Id expect to be quite happy otherwise, Im glad i didn't pay cash in.
Someone with £500k in a Pension Pot would not have put in £500k.Jesus......Id not be that happy if that was my lot. Obviously someone on a decent final salary pension Id expect to be quite happy otherwise, Im glad i didn't pay cash in.
£125k of the pot can be drawn at zero tax. Zilch. Nada.
PurpleMoonlight said:
kurt535 said:
Ty to you both.
Jesus......Id not be that happy if that was my lot. Obviously someone on a decent final salary pension Id expect to be quite happy otherwise, Im glad i didn't pay cash in.
Jesus......Id not be that happy if that was my lot. Obviously someone on a decent final salary pension Id expect to be quite happy otherwise, Im glad i didn't pay cash in.
So what are you proposing to live on when you retire then?
kurt535 said:
I got stripped out during my divorce. so ive spent the last 10 years coming back, as it were, and stuck the cash into various BTL's I own outright. Pal of mine was adamant id have been better off putting money into a pension (on basis of tax breaks) but id much rather take the tax hit and have something to hand down to my son after all ive been through. I did some further research and saw since 2000, annuities have halved....just bad news. very concerning for everyone's future.
Hopefully your strategy has worked well, Kurt. There is more than one way to skin a cat.Remember we are all living a lot longer. That £100k you use to buy an annuity is the same £100k you make on a BTL. They both have to last the same amount of time.
kurt535 said:
PurpleMoonlight said:
kurt535 said:
Ty to you both.
Jesus......Id not be that happy if that was my lot. Obviously someone on a decent final salary pension Id expect to be quite happy otherwise, Im glad i didn't pay cash in.
Jesus......Id not be that happy if that was my lot. Obviously someone on a decent final salary pension Id expect to be quite happy otherwise, Im glad i didn't pay cash in.
So what are you proposing to live on when you retire then?
Over time, expect to see increasing taxation from the government and local authorities. When they see a big, illiquid income-producing asset they just can't help themselves.
kurt535 said:
I don't have a pension but, I am interested what a person can expect to draw down monthly if they had, say, £500,000 in their pot?
Ty
Approx £1700 for the rest of your life if you want to take your money at 65. Try this site (lets you play around with monthlies etc) https://www.pensionwise.gov.uk/en/guaranteed-incom...Ty
For anyone that knows - what is the difference if the £500k pot is in an ISA? Would the rates be the same as the pension but you just don't get taxed on the monthly annuity figure?
kurt535 said:
....stuck the cash into various BTL's I own outright. Pal of mine was adamant id have been better off putting money into a pension (on basis of tax breaks) but id much rather take the tax hit and have something to hand down to my son after all ive been through. I did some further research and saw since 2000, annuities have halved....just bad news. very concerning for everyone's future.
Have you ever crunched the numbers to see if that actually stacks up?- Only few people buy an annuity these days. Income drawdown is preferred by many.
- Your BTL income is not tax free
- Your BTL capital gains are charged at a special high rate of tax
- Your BTL is subject to full IHT.
Health-adjusted life expectancy (HALE) today in the UK is just 63-71 years for men, depending on whose numbers you believe.
In other words, *the vast majority of men get less than a decade of good retirement* after quitting work.
The perception of grandpas going rollerblading and hitting up rock concerts is largely a myth. A more likely scenario is you'll spend much of your retirement rubbing in Voltarol and popping statins while sitting exhausted in front of Emmerdale.
Thus, it makes sense for most men, particularly working-class Northerners, to withdraw and spend as much of the pension cash as fast as possible.
With a 500k pot, it would be best to immediately withdraw 125k and spank it on a Lambo and then spend most of the following 5 years travelling the world on holiday (or whatever is your dream). Do it while you can.
In other words, *the vast majority of men get less than a decade of good retirement* after quitting work.
The perception of grandpas going rollerblading and hitting up rock concerts is largely a myth. A more likely scenario is you'll spend much of your retirement rubbing in Voltarol and popping statins while sitting exhausted in front of Emmerdale.
Thus, it makes sense for most men, particularly working-class Northerners, to withdraw and spend as much of the pension cash as fast as possible.
With a 500k pot, it would be best to immediately withdraw 125k and spank it on a Lambo and then spend most of the following 5 years travelling the world on holiday (or whatever is your dream). Do it while you can.
rockin said:
kurt535 said:
....stuck the cash into various BTL's I own outright. Pal of mine was adamant id have been better off putting money into a pension (on basis of tax breaks) but id much rather take the tax hit and have something to hand down to my son after all ive been through. I did some further research and saw since 2000, annuities have halved....just bad news. very concerning for everyone's future.
Have you ever crunched the numbers to see if that actually stacks up?- Only few people buy an annuity these days. Income drawdown is preferred by many.
- Your BTL income is not tax free
- Your BTL capital gains are charged at a special high rate of tax
- Your BTL is subject to full IHT.
Yipper said:
Health-adjusted life expectancy (HALE) today in the UK is just 63-71 years for men, depending on whose numbers you believe.
In other words, *the vast majority of men get less than a decade of good retirement* after quitting work.
The perception of grandpas going rollerblading and hitting up rock concerts is largely a myth. A more likely scenario is you'll spend much of your retirement rubbing in Voltarol and popping statins while sitting exhausted in front of Emmerdale.
Thus, it makes sense for most men, particularly working-class Northerners, to withdraw and spend as much of the pension cash as fast as possible.
With a 500k pot, it would be best to immediately withdraw 125k and spank it on a Lambo and then spend most of the following 5 years travelling the world on holiday (or whatever is your dream). Do it while you can.
Remember care home fee inflation.In other words, *the vast majority of men get less than a decade of good retirement* after quitting work.
The perception of grandpas going rollerblading and hitting up rock concerts is largely a myth. A more likely scenario is you'll spend much of your retirement rubbing in Voltarol and popping statins while sitting exhausted in front of Emmerdale.
Thus, it makes sense for most men, particularly working-class Northerners, to withdraw and spend as much of the pension cash as fast as possible.
With a 500k pot, it would be best to immediately withdraw 125k and spank it on a Lambo and then spend most of the following 5 years travelling the world on holiday (or whatever is your dream). Do it while you can.
Yipper said:
Health-adjusted life expectancy (HALE) today in the UK is just 63-71 years for men, depending on whose numbers you believe.
In other words, *the vast majority of men get less than a decade of good retirement* after quitting work.
The perception of grandpas going rollerblading and hitting up rock concerts is largely a myth. A more likely scenario is you'll spend much of your retirement rubbing in Voltarol and popping statins while sitting exhausted in front of Emmerdale.
Thus, it makes sense for most men, particularly working-class Northerners, to withdraw and spend as much of the pension cash as fast as possible.
With a 500k pot, it would be best to immediately withdraw 125k and spank it on a Lambo and then spend most of the following 5 years travelling the world on holiday (or whatever is your dream). Do it while you can.
OMG!In other words, *the vast majority of men get less than a decade of good retirement* after quitting work.
The perception of grandpas going rollerblading and hitting up rock concerts is largely a myth. A more likely scenario is you'll spend much of your retirement rubbing in Voltarol and popping statins while sitting exhausted in front of Emmerdale.
Thus, it makes sense for most men, particularly working-class Northerners, to withdraw and spend as much of the pension cash as fast as possible.
With a 500k pot, it would be best to immediately withdraw 125k and spank it on a Lambo and then spend most of the following 5 years travelling the world on holiday (or whatever is your dream). Do it while you can.
Not long left then. Better start spending.
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