Private pension age going up from 55.....

[sidicks]

The_Burg said:

I pay a substantial amount into my pension. Can't decide whether i'd be better off paying off the mortgage quicker instead.
Whether after paying money in i will any better off than those the pay nowt?

That depends on the interest rate on your mortgage and the (tax relief adjusted) performance of the assets you chose to invest in plus your attitude to risk....!

[Welshbeef]

Mortgage or pension

If the employer pays in also then a huge benefit to give up let alone the tax break. Most also have life insurance multiples of your salary so worth doing it relly.




Repayment mortgage = enforced savings scheme
Pension = enforced savings scheme.

[Sheepshanks]

sidicks said:

To repeat - they are STUPID if they believe that, given that changes have affected future accruals not accrued benefits.

If the Unions were doing their jobs, they explain this to their members...

I'm talking about people in their 20's - they won't have much accrued.

They're expecting to have to work into their 70's. A lot of people think the NHS itself is unsustainable in the long term, never mind its pensions schemes. When you're struggling to pay the bills today, and the pension 40-50yrs away looks so iffy, it takes a significant leap of faith to give up a sizeable chunk of your income.

[sidicks]

Sheepshanks said:

I'm talking about people in their 20's - they won't have much accrued.

They're expecting to have to work into their 70's. A lot of people think the NHS itself is unsustainable in the long term, never mind its pensions schemes. When you're struggling to pay the bills today, and the pension 40-50yrs away looks so iffy, it takes a significant leap of faith to give up a sizeable chunk of your income.

Exactly the same thing that applies to millions of private sector workers, but they have the option of lower contributions for lower benefits.

Just as I've proposed for the public sector.

[Sheepshanks]

sidicks said:

Exactly the same thing that applies to millions of private sector workers,

Yes, well done. We've reached the lowest common denominator position.

[sidicks]

Sheepshanks said:

Yes, well done. We've reached the lowest common denominator position.

No, we've reached the economic reality ("money doesn't grow on trees") position.

I'm sorry you're struggling to understand the difference..

[tom2019]

This is why I'll ever put into a pension... A big pot of money the government basically control. If st I'd ever hit the fan i imagine pension pots would be the 1st thing to go. It's just not for me, I double my money insantly every time i overpay my mortgage, and then with house prices rising. It's seems a safer more controllable way of managing my assets.

[anonymous-user]

Sheepshanks said:

Yes, well done. We've reached the lowest common denominator position.

Bless.

Edited by anonymous-user on Monday 28th July 04:35

[Andy Zarse]

sidicks said:

mph1977 said:

which rules ?

the law allows you to draw on occupational pensions from 50 or 55 , however the 'normal retriement age' for many of these schemes is between 60 and State pension age ... taking pension before the normal retirement age reduces the pension payable , in some cases delayign retirement can increase the pension payable

in a defined contribution scheme - the fund you build up is what , normally. pays for the annuity - there is the possibility of use this fund in other ways and there is also thewhole 'impaired' annuity thing where the annuity provider takesa gamlbe on you dying early becasue of existing morbidity or becasue of lifestyle choices like beign a smoker .

in a defined benefit scheme your contributions are what builds up your entitlement to the defined benefit at the point where you draw the salary

Given your recent performance can I suggest you leave the responses to those that actually know what they are talking about. (I'm putting the accuracy of much of the above down to luck).

Edited by sidicks on Sunday 27th July 19:08

Hey mph1977 I just showed this thread to my other half; she's got a Masters in maths, has some additional actuarial qualifications and she runs benefit calculations for large DB pension schemes. She laughed and said "Does he want a job.... NOT!!!".

Honestly, you've made a bit of a chump of yourself haven't you. It's an object lesson in playing Billy big potatoes when you've not the single faintest clue what you're talking about. You are an absolute gold-plated, diamond-encrusted, laser-honed idiot.

[Sheepshanks]

sidicks said:

No, we've reached the economic reality ("money doesn't grow on trees") position.

So it's basically not worth anyone bothering with pensions.

You could make your own provision although if we get to the point where the Government can't pay public sector and possibly even state pensions, then all bets are off anyway.

[Qwert1e]

Andy Zarse said:

It's an object lesson in playing Billy big potatoes when you've not the single faintest clue what you're talking about. You are an absolute gold-plated, diamond-encrusted, laser-honed idiot.

Well AZ, I've been following this thread with some care and have direct personal knowledge of the subject. It looks to me as though Sidicks has been making a good effort to set out a realistic view.

It's a mystery to me why you felt the need to make a post based on hearsay and with such an unpleasant, aggressive tone.

[Andy Zarse]

Qwert1e said:

Well AZ, I've been following this thread with some care and have direct personal knowledge of the subject. It looks to me as though Sidicks has been making a good effort to set out a realistic view.

It's a mystery to me why you felt the need to make a post based on hearsay and with such an unpleasant, aggressive tone.

Heresay? What heresay?

[anonymous-user]

Sheepshanks said:

So it's basically not worth anyone bothering with pensions.

If public sector workers make that decision that would be excellent for the treasury but a spectacularly stupid personal decision. I'd be worried if my nurse or doctor were that thick! Amongst all the flapping about the public sector having their incredibly generous pensions replaced with very slightly less incredibly generous pensions the fact that no one has lost a penny of their, already earned, benefit seems to get accidentally on purpose forgotten by some. There is no precident for anyone to have their accrued benefits taken, so to take the decision now, not to start accruing that benefit, is idiotic.

For the private sector sitting on a real pot of cash relying on investment growth the picture is completely different. I always took the view that the UK's private pension savings represented too tempting a trough for the politicians to keep their snouts out of. When Brown helped himself to what is now estimated to be over £100bn from private pension savers that was from money already invested, which we could not withdraw.