How much has your pension lost?
Discussion
I was shocked to see how much my pension has dropped in the last 6 months!!
I'm with one of the top rated pension funds and mine has dropped 18% since April!!......still i'm paying the management company a healthy % as it drops.
One big con.
So, if you have one, how are you fairing?
I'm with one of the top rated pension funds and mine has dropped 18% since April!!......still i'm paying the management company a healthy % as it drops.
One big con.
So, if you have one, how are you fairing?
- **Mods, please keep in the lounge so we can expose this con!!****
Edited by OdramaSwimLaden on Wednesday 5th October 12:01
mine has gone up and down like a yoyo. Went down 3 yrs ago.
When started was paying £350 a month 10% extra each year required to give about £10k return intodays money.
now up to about £570 and the forcast is still going down now to about £9100 return. last few payments will be £2000 ish which I wont be able to do hence wont meet even this lower forcast let alone if the stocks bomb.
Got 14 years left and looking to suspend it and put the money towards a rental property.
We have other rentals so the pension was in addition but the more I think about it the less sence a normal pension makes. I have to buy an anuuity, (rates reducing) if I die soon after retiring wife gets 50% for x yrs then nothing its wasted, Ive got to live min of 25 yrs after retiring at 55 to break even and then I have no asset to pass on/sell.
If I get a rental property and use the money to pay off the mortgage and rent received will mean its paid off in about 15 yrs then Ill have about a £10k income plus the assett to pass on sell do what I like. sure I have to find the deposit but it still looks more attractive and is under my control. Sure CGT when its sold but its still works out better then a poorly perforimg pension.
When started was paying £350 a month 10% extra each year required to give about £10k return intodays money.
now up to about £570 and the forcast is still going down now to about £9100 return. last few payments will be £2000 ish which I wont be able to do hence wont meet even this lower forcast let alone if the stocks bomb.
Got 14 years left and looking to suspend it and put the money towards a rental property.
We have other rentals so the pension was in addition but the more I think about it the less sence a normal pension makes. I have to buy an anuuity, (rates reducing) if I die soon after retiring wife gets 50% for x yrs then nothing its wasted, Ive got to live min of 25 yrs after retiring at 55 to break even and then I have no asset to pass on/sell.
If I get a rental property and use the money to pay off the mortgage and rent received will mean its paid off in about 15 yrs then Ill have about a £10k income plus the assett to pass on sell do what I like. sure I have to find the deposit but it still looks more attractive and is under my control. Sure CGT when its sold but its still works out better then a poorly perforimg pension.
TBH the main advandtage of a pension to a private individual is that it enables them to save for their retirement in a way that they cannot access those savings in the shorter term - many people are weak and once the pot builds enough will just see a pile of 'free' cash to blow on a car/holiday etc. Not everyone is strong willed enough to save a regular amount over several years without spending it.
Property/BTL may well be a good option as long as you tread carefully, though again it's not an option open to the masses, eg/ a 25% deposit isn't exactly pocket change.
An ISA (ideally stocks not cash) will give savings flexibility but comes back to the free cash argument.
Personally if my company didn't contribute 12% of my salary alongside my 6% (18% total pcm) I'd be investing myself in various investment funds and then property. As it stands though, the gains for me far outweigh the actual net flow from my salary, though thats not to say I won't save elsewhere, in fact my sharesve will mature in 2 years time netting me around 32k (markets dependant) and that will fund my first BTL.
Property/BTL may well be a good option as long as you tread carefully, though again it's not an option open to the masses, eg/ a 25% deposit isn't exactly pocket change.
An ISA (ideally stocks not cash) will give savings flexibility but comes back to the free cash argument.
Personally if my company didn't contribute 12% of my salary alongside my 6% (18% total pcm) I'd be investing myself in various investment funds and then property. As it stands though, the gains for me far outweigh the actual net flow from my salary, though thats not to say I won't save elsewhere, in fact my sharesve will mature in 2 years time netting me around 32k (markets dependant) and that will fund my first BTL.
anonymous said:
[redacted]
It's a valid point that if you pay 20% now and expect to do so in retirement then the gain is less than you'd think (you get 25% of it as cash so it's 5% tax relief!)But if you have little income in retirement (non-working spouse) or pay 40 or 50% now and expect to drop to 20% in retirement then there is a clean gain between the relief now and the income tax paid as a little old person.
And anyone who thinks a falling market shows why a pension is a "con" should not worry about such things until they have left school and actually have a job.
anonymous said:
[redacted]
And pay tax on that income (assuming you are not talking about just taking the capital - but even then you may face capital gains tax).If you want to invest in a pension and are some time from retirement now is a good time to do so as units costs less.
The biggest advantage is the tax relief meaning you can afford for the stock market to lose a fair whack before you are technically any worse off. As someone else also said it stops you from touching the money before as well (though this is not always a good thing).
And also to answer some of the comments above you will not have to take an annuity at all soon and can just draw down on the fund, so people will not be punished by reaching the mandatory age when markets are crap (ie now).
Property is probably still a good investment, but to rely on it for retirement I would be looking to mix it with a pension also. Especially if you have an employer scheme where they contribute - not joining this is equivalent to throwing away a pay rise!
Toro Rosso said:
Property is probably still a good investment, but to rely on it for retirement I would be looking to mix it with a pension also. Especially if you have an employer scheme where they contribute - not joining this is equivalent to throwing away a pay rise!
Self employed - so no help there. Think I will still go down the route of all into properties. Dont like the idea of not leaving anything if I die early/dont live long enough to reap any benefit of the pension/ like my own hot sticky hands on it rather then anyone eleses.Gassing Station | Finance | Top of Page | What's New | My Stuff