Suggest alternatives to conventional pensions

[singlecoil]

It seems to me that whether one relies on a pension from the state or some private entity, there's a good chance that when the time comes to collect, there will be little or nothing there. This has already happened to some people, and it looks to me as if it's going to happen to a lot more.

So what would be a better alternative, invest in shares? Buy gold? Move abroad to where living expenses are less?

I reckon one good one, although risky, is to start your own business, something that can carry on producing profit when you no longer actively work in it.

[Four Cofffee]

singlecoil said:

It seems to me that whether one relies on a pension from the state or some private entity, there's a good chance that when the time comes to collect, there will be little or nothing there. This has already happened to some people, and it looks to me as if it's going to happen to a lot more.

So what would be a better alternative, invest in shares? Buy gold? Move abroad to where living expenses are less?

I reckon one good one, although risky, is to start your own business, something that can carry on producing profit when you no longer actively work in it.

I am investing my time in creating IPR which will continue generating income (hopefully) after I retire.

It would be useful if someone did an insurance agaisnst needing a care home as that is the one intangible which I would happily part with a lump sum for at the age of say 60 or 65. I assume the insurers know the liklihood and probable length of requiring residential and possibly nursing care and could create a product. That woulod make my future much more predictable if I then knew I could draw down the remaining capital knowing that I had a decent care home covered and wasn't going to end up where social services thought it suited their budget

[Simpo Two]

Second property?

Four Cofffee said:

I am investing my time in creating IPR which will continue generating income (hopefully) after I retire.

It would be useful if someone did an insurance agaisnst needing a care home as that is the one intangible which I would happily part with a lump sum for at the age of say 60 or 65.

There is - it was suggested to my mother by an IFA about 10 years ago. Sadly she didn't take it up as she's now in a care home burning up £20K pa. Mind you I'm sure the actuaries do a good job to ensure that you're unlikey to get as much out as you pay in... if you want £1-200K for care home fees then you can imagine what the premiums would be like.



What's IPR?

[Rockatansky]

Simpo Two said:

What's IPR?

Intellectual Property Rights?

[singlecoil]

The insurance-based solutions would require the insurance company itself to be still in existence, and both willing and able to pay out, n'est-ce-pas?

[Four Cofffee]

singlecoil said:

The insurance-based solutions would require the insurance company itself to be still in existence, and both willing and able to pay out, n'est-ce-pas?

There must be a bond scheme like all other forms of insurance?

[singlecoil]

Four Cofffee said:

singlecoil said:

The insurance-based solutions would require the insurance company itself to be still in existence, and both willing and able to pay out, n'est-ce-pas?

There must be a bond scheme like all other forms of insurance?

I daresay, could it be relied upon, though? Presumably it could only cope with a certain load, after which....

[Timmy35]

By some farmland.

Plants mixed commercial tress e.g. Douglas firs/ spruce.

Wait 30 years.

Collect Pension.

Income, capital gains, and inheritance tax free.

Edited by Timmy35 on Friday 19th February 13:03

[Simpo Two]

Timmy35 said:

By some farmland.

Plants mixed commercial tress e.g. Douglas firs/ spruce.

Wait 30 years.

Collect Pension.

Income, capital gains, and inheritance tax free.

Until the next Government gets in and changes all the rules...

[Timmy35]

Simpo Two said:

Timmy35 said:

By some farmland.

Plants mixed commercial tress e.g. Douglas firs/ spruce.

Wait 30 years.

Collect Pension.

Income, capital gains, and inheritance tax free.

Until the next Government gets in and changes all the rules...

You could apply that to all/any investment.

[Tiggsy]

singlecoil said:

It seems to me that whether one relies on a pension from the state or some private entity, there's a good chance that when the time comes to collect, there will be little or nothing there.

Do what? A private pension is just a savings plan....the only reason there would be nothing there is because you put nothing in or you put stuff in a fund that then looses 100% of its value and you didnt realise.

As long as you check on regular basis how its going its no different to any other form of savings, be that ISA, Unit Trust, Equity Portfolio, etc. My pension is looking fine and theres as much chance of it being worthless at retirement as there is my house being £10.

This notion that "pensions are crap" is like listening to a mate who bought a st Corsa and then never buying a vehicle because he said cars are crap!

[singlecoil]

Tiggsy said:

As long as you check on regular basis how its going its no different to any other form of savings, be that ISA, Unit Trust, Equity Portfolio, etc. My pension is looking fine and theres as much chance of it being worthless at retirement as there is my house being £10.

I'm glad you are so confident in the companies providing your pension still being there, and with some money, when it is time for them to pay out, it must be very comforting. I personally don't share that confidence, but perhaps that's just the pessimist/realist? in me

[siscar]

singlecoil said:

I reckon one good one, although risky, is to start your own business, something that can carry on producing profit when you no longer actively work in it.

Absolutely, or which you can sell when you retire giving you a lump sum to invest elsewhere.

[Tiggsy]

singlecoil said:

Tiggsy said:

As long as you check on regular basis how its going its no different to any other form of savings, be that ISA, Unit Trust, Equity Portfolio, etc. My pension is looking fine and theres as much chance of it being worthless at retirement as there is my house being £10.

I'm glad you are so confident in the companies providing your pension still being there, and with some money, when it is time for them to pay out, it must be very comforting. I personally don't share that confidence, but perhaps that's just the pessimist/realist? in me

If its a private pension wheres your example of the likes of Invesco, Fidelity, Jupiter etc going under and taking clients money with them?

[ymwoods]

I think the best kind of pension (if doing well for yourself at the moment) is to rent out property. At first using the cash just to pay off the mortgage, and then using it to save for and to fund your pension. A friends dad owns 2 buildings, each with 5 bedsits each. Once the mortgage is paid off then that place is pretty much his pension.

[Simpo Two]

Tiggsy said:

This notion that "pensions are crap" is like listening to a mate who bought a st Corsa and then never buying a vehicle because he said cars are crap!

But there are an awful lot of complex rules surrounding pensions. If you have a second property, you can do what you like with it whenever you want.

I have a fair private pension in the wings but the number of clever money-people getting fat off it is not good.

[singlecoil]

Tiggsy said:

singlecoil said:

Tiggsy said:

As long as you check on regular basis how its going its no different to any other form of savings, be that ISA, Unit Trust, Equity Portfolio, etc. My pension is looking fine and theres as much chance of it being worthless at retirement as there is my house being £10.

I'm glad you are so confident in the companies providing your pension still being there, and with some money, when it is time for them to pay out, it must be very comforting. I personally don't share that confidence, but perhaps that's just the pessimist/realist? in me

If its a private pension wheres your example of the likes of Invesco, Fidelity, Jupiter etc going under and taking clients money with them?

I don't have any specific examples, but I am looking at trends and the overall financial outlook. It may be that private pensions will be ok, and it may be that they won't be.

[Tiggsy]

singlecoil said:

Tiggsy said:

singlecoil said:

Tiggsy said:

As long as you check on regular basis how its going its no different to any other form of savings, be that ISA, Unit Trust, Equity Portfolio, etc. My pension is looking fine and theres as much chance of it being worthless at retirement as there is my house being £10.

I'm glad you are so confident in the companies providing your pension still being there, and with some money, when it is time for them to pay out, it must be very comforting. I personally don't share that confidence, but perhaps that's just the pessimist/realist? in me

If its a private pension wheres your example of the likes of Invesco, Fidelity, Jupiter etc going under and taking clients money with them?

I don't have any specific examples, but I am looking at trends and the overall financial outlook. It may be that private pensions will be ok, and it may be that they won't be.

So where are the trends that suggest such funds would under perform over the longer term? Pensions are very simple...stick in £60...it becomes £100. Leave it to grow.

The "Overall financial outlook" is that a decent pension fund will make money over the longer term (which is what i want at 36)

[Noel]

It seems there are a number of popular alternatives, residential property being the most fashionable.

For my money it's a combination of investments which would work best. Traditional pension, commercial property, equities and bonds.

[singlecoil]

Tiggsy said:

singlecoil said:

Tiggsy said:

singlecoil said:

Tiggsy said:

As long as you check on regular basis how its going its no different to any other form of savings, be that ISA, Unit Trust, Equity Portfolio, etc. My pension is looking fine and theres as much chance of it being worthless at retirement as there is my house being £10.

I'm glad you are so confident in the companies providing your pension still being there, and with some money, when it is time for them to pay out, it must be very comforting. I personally don't share that confidence, but perhaps that's just the pessimist/realist? in me

If its a private pension wheres your example of the likes of Invesco, Fidelity, Jupiter etc going under and taking clients money with them?

I don't have any specific examples, but I am looking at trends and the overall financial outlook. It may be that private pensions will be ok, and it may be that they won't be.

So where are the trends that suggest such funds would under perform over the longer term? Pensions are very simple...stick in £60...it becomes £100. Leave it to grow.

The "Overall financial outlook" is that a decent pension fund will make money over the longer term (which is what i want at 36)

Sorry, I didn't mean trends for companies providing pension to collapse, I meant the trend for large financial concerns to suddenly, or slowly, be unable to do the stuff they promised their shareholders or clients or customers they would do. Are pension companies immune from the problems that seem to be affecting other firms? Are you so sure that your pension will be ok in 30 years time when even governments are having severe problems in meeting their obligations now?