I'm 42, No pension, will I die in a puddle of my own S#it
Discussion
I'd start trying to over pay the mortgage and once paid bank your wages. Once you have retired I would consider picking up a part time job somewhere to bring a bit of additional money in, or you could run a small business from home. It is beneficial to keep yourself active after retirement and you might actually enjoy a change of pace doing something simple for a few hours a week.
As far as the kids going to uni, I understand you want to help them but they should get part time jobs and work during the summer holidays to help pay for their accommodation or living expenses, I did, as did most of my friends and my degree didn't suffer because of it either. The responsibility shouldn't really fall to you, do you think they will support you when you are living on a state pension and they have established careers or their own families?
As far as the kids going to uni, I understand you want to help them but they should get part time jobs and work during the summer holidays to help pay for their accommodation or living expenses, I did, as did most of my friends and my degree didn't suffer because of it either. The responsibility shouldn't really fall to you, do you think they will support you when you are living on a state pension and they have established careers or their own families?
Taita said:
If pensions are s
t why dont we just pay into ISAs and savings accounts?
I have 2 pensions at 23 but know feck all tbh!
If you put money into an ISA, you get tax relief when you put the money in and don't get taxed whe you take your money out.t why dont we just pay into ISAs and savings accounts?I have 2 pensions at 23 but know feck all tbh!
With a pension you get tax relief when you put money in but when you draw it it gets taxed. I'm leaning toward putting more into ISA's but you still need a good spread of risk, pensions, isas', cash blar blar.
My outlook on life is that there needs to be a balance. Certainly consider the future but then you could be run over by a bus tomorrow. I have a modest mortgage which will be paid off when I'm 50 and a co pension scheme that I pay the max into only to get the max co contributions. This will certainly not be enough to retire on.
However, I'm not going to put every bit of spare cash into pensions, investments etc. I have 2 young kids and we like to spend time and money doing things with them (holidays etc). After all the time is now and with kids you can't ever get that time back....
However, I'm not going to put every bit of spare cash into pensions, investments etc. I have 2 young kids and we like to spend time and money doing things with them (holidays etc). After all the time is now and with kids you can't ever get that time back....
>If you put money into an ISA, you get tax relief when you put the money in
Eek. Wrong. You don't get any tax relief when the money goes in. The relief applies when the money comes OUT (i.e. no capital gains tax to pay). You get tax relief on a pension contribution. That's because you can't touch the money until retirement (25% can be taken out tax free when you are 50).
ETA: if you are 42 inflation will mean you'll need a pension of at least £25,000 a year by the time you are 60 (equivalent to £10,000 a year now). That will require a pension pot of around £750,000. My own pension pot is now worth less than it was in 2007, let alone any inflation-required growth. But at least the chief architect of the reason why pensions are FUBAR Gordon Brown will be financially secure in his old age.
Eek. Wrong. You don't get any tax relief when the money goes in. The relief applies when the money comes OUT (i.e. no capital gains tax to pay). You get tax relief on a pension contribution. That's because you can't touch the money until retirement (25% can be taken out tax free when you are 50).
ETA: if you are 42 inflation will mean you'll need a pension of at least £25,000 a year by the time you are 60 (equivalent to £10,000 a year now). That will require a pension pot of around £750,000. My own pension pot is now worth less than it was in 2007, let alone any inflation-required growth. But at least the chief architect of the reason why pensions are FUBAR Gordon Brown will be financially secure in his old age.
Edited by audidoody on Saturday 12th November 10:59
I'm 39 and have a very small pension which last time I looked would pay me about £3000/pa. I've just bought a house worth £97k so that will hopefully be paid off as I hit 65. The missus has a £500,000 house so the plan will be to sell mine once it is paid off and move in permanently with the missus (an odd arrangement I agree but it's a long story). I also intend to work part time as I've seen too many old folks slowly go mad through having nothing to occupy themselves. Also there is the possibility of a good inheritance however I'll consider that a bonus and not a key part of my plan as I have told my parents I expect them to enjoy their retirement.
If all that fails then I will move in with my sister and be a burden on her children and grandchildren whilst being a grumpy old git.
If all that fails then I will move in with my sister and be a burden on her children and grandchildren whilst being a grumpy old git.
audidoody said:
>If you put money into an ISA, you get tax relief when you put the money in
ETA: if you are 42 inflation will mean you'll need a pension of at least £25,000 a year by the time you are 60 (equivalent to £10,000 a year now). That will require a pension pot of around £750,000. My own pension pot is now worth less than it was in 2007, let alone any inflation-required growth. But at least the chief architect of the reason why pensions are FUBAR Gordon Brown will be financially secure in his old age.
This is the problem I have, I can't see anyway that I could afford to put away enough to achieve that. ETA: if you are 42 inflation will mean you'll need a pension of at least £25,000 a year by the time you are 60 (equivalent to £10,000 a year now). That will require a pension pot of around £750,000. My own pension pot is now worth less than it was in 2007, let alone any inflation-required growth. But at least the chief architect of the reason why pensions are FUBAR Gordon Brown will be financially secure in his old age.
Edited by audidoody on Saturday 12th November 10:59
I'm sort of thinking about other alternative investments at the moment.
People seem to take a very short-term view on pensions these days, yet they're long term investments. Quite perplexing.
Think property is the way to go? Get a property fund in your pension. Think gold is the way to go? Get a gold/metals fund in your pension. And enjoy the tax benefits and company contributions that come with them.
Think property is the way to go? Get a property fund in your pension. Think gold is the way to go? Get a gold/metals fund in your pension. And enjoy the tax benefits and company contributions that come with them.
Slyjoe said:
I have 4 kids with possibility's of Uni later.
PH wat do?
Get the kids into good jobs and they'll take care of you. It's how it's done in other countries. Surely at least one of the buggers will come good?PH wat do?
(In reality they'll all emigrate though and leave you to die in a puddle of your own s
t).I started my pension when I was 28, currently 45, with the intention of it maturing when I got to 55.
It's doing OKish but my IFA has just recommended that I redeem some of the equities units and sit on the cash for now. Make of that what you will.
I must admit though. I like BGs idea.
It's doing OKish but my IFA has just recommended that I redeem some of the equities units and sit on the cash for now. Make of that what you will.
I must admit though. I like BGs idea.
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