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Pensions - DO NOT MISS OUT!

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  • edited December 2018
    Addickted said:

    bobmunro said:

    Addickted said:

    Semi retirement is the way to go. Working mostly from home does make it so much simpler, as long as you make sure everyone knows you are available.

    Just fade away into the background, whilst they continue to pay you and put into your pension.

    That's my plan over the next two to three years - but I'll always want to be involved in some way so I'm not sure I'll ever fully retire.
    I always thought that as well, but health issues can sometimes overtake you.
    Of course - we all need fair winds and following seas.
  • edited December 2018
    Interesting.... my mum worked for the commonwealth bank of Australia here in London for over 10 years leaving in 87 (to have me, sorry mum). She’s never heard a peep from them about any pension money, but from what you guys are saying she should have.

    How do we go about chasing it, give the bank a call?

    Any help would be greatly appreciated, could be a lovely Christmas present for my mum!
  • EastStand said:

    Interesting.... my mum worked for the commonwealth bank of Australia here in London for over 10 years leaving in 87 (to have me, sorry mum). She’s never heard a peep from them about any pension money, but from what you guys are saying she should have.

    How do we go about chasing it, give the bank a call?

    Any help would be greatly appreciated, could be a lovely Christmas present for my mum!

    This is a good place to start:

    https://www.gov.uk/find-pension-contact-details
  • bobmunro said:

    EastStand said:

    Interesting.... my mum worked for the commonwealth bank of Australia here in London for over 10 years leaving in 87 (to have me, sorry mum). She’s never heard a peep from them about any pension money, but from what you guys are saying she should have.

    How do we go about chasing it, give the bank a call?

    Any help would be greatly appreciated, could be a lovely Christmas present for my mum!

    This is a good place to start:

    https://www.gov.uk/find-pension-contact-details
    Thanks good sir!
  • Riviera said:

    I didn't post to start an argument, pensions for the younger generations are not good. I just wanted to let the 50+'s to not forget their early employers. There is gold in them hills...

    You are so right. I contributed into an AVC scheme with a previous employer.
    At the time I thought it was a good idea as I planned to live out my life at that company. Things didn’t work out that way and basically I had wasted my money paying into it as I took it out after 1987 and wouldn’t be able to take a cash lump sum, wouldn’t be able to add to it or move it to another employers and would have to buy an annuity with it 25 years in the future which would pay me next to nothing for life.
    Thankfully there was a change in law and now being 55 years old I can take the lot with 25% of it tax free. So next April when the tax freehold increases I will be taking the lot. I will have to pay higher rate of tax on some of it but I did have tax relief on contributions when I paid into it. Can’t have it both ways but that’s only fair, we all need to pay taxes.
    Better in my pocket now than when I’m old and the only pleasure I can get from money is to count it. It’s not a life changer amount but not to be sniffed at either.
    I'd be interested in seeing how you get it out when the time comes. Is it still with the ex-employer or now under your own control ?? It sounds like it's over the limit where you can do it yourself & pension providers now need to make sure you've taken appropriate advice. Why would you want to lose 40% in tax ?? Why not take the 25% tfc & then the rest over time ?? If you're not working then you have £11500 pa annual allowance to use up & then almost 40k at 20%.

    And once you have this money....what do you do with it ?? Put it in a bank earning diddly squat ??

    I think I should be recommending my services.....
    Thanks Golfie for the offer of your services but it ain’t really a great wedge money.
    It’s with the Prodential, my old company used them for their AVC scheme.
    They wrote to me earlier this year to inform me of my options as I had turned 55.
    The way I read it was that whatever sum I took only 25% of that amount was tax free. So that’s why I thought I’d do it the way I mentioned.

  • A question for the more clued up amongst us...

    So I've just had my annual pension statement through, currently estimating £17,800 pa for retirement with the initial 25% lump sum. This is based on retiring at 55, with no mortgage. Is this is a reasonable amount? Should I be plowing in more?

    When estimating these amounts, at what age do they assume you're going to pop your clogs?
  • cafcpolo said:

    A question for the more clued up amongst us...

    So I've just had my annual pension statement through, currently estimating £17,800 pa for retirement with the initial 25% lump sum. This is based on retiring at 55, with no mortgage. Is this is a reasonable amount? Should I be plowing in more?

    When estimating these amounts, at what age do they assume you're going to pop your clogs?

    Is it a non contributory Defined Benefit scheme ?

    You need to say exactly what sort of pension it is, before anyone could begin to discuss/advise sensibly.
  • cafcpolo said:

    A question for the more clued up amongst us...

    So I've just had my annual pension statement through, currently estimating £17,800 pa for retirement with the initial 25% lump sum. This is based on retiring at 55, with no mortgage. Is this is a reasonable amount? Should I be plowing in more?

    When estimating these amounts, at what age do they assume you're going to pop your clogs?

    Is it a non contributory Defined Benefit scheme ?

    You need to say exactly what sort of pension it is, before anyone could begin to discuss/advise sensibly.
    Defined contribution I guess? It's a private one, pay in myself, nothing going into it other than my contributions.
  • EastStand said:

    Interesting.... my mum worked for the commonwealth bank of Australia here in London for over 10 years leaving in 87 (to have me, sorry mum). She’s never heard a peep from them about any pension money, but from what you guys are saying she should have.

    How do we go about chasing it, give the bank a call?

    Any help would be greatly appreciated, could be a lovely Christmas present for my mum!

    Weird but I temped for a few months in 1987 (July/August) at The Commonwealth Bank of Australia, London as someone was leaving on maternity leave. Say hi to your Mum for me ;-)

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  • cafcpolo said:

    A question for the more clued up amongst us...

    So I've just had my annual pension statement through, currently estimating £17,800 pa for retirement with the initial 25% lump sum. This is based on retiring at 55, with no mortgage. Is this is a reasonable amount? Should I be plowing in more?

    When estimating these amounts, at what age do they assume you're going to pop your clogs?

    As an ex-financial adviser I would say -

    The annual pension is payable for life whether you died at 56 or 96.

    The pension stops paying when you die, unless you have something like a 50% pension to your partner, if you die first.

    The best placed person to answer whether a £17,800pa pension is sufficient is yourself.

    It really depends on your lifestyle.

    Remember that you would also get the state pension at 67, as is now or perhaps later depending upon your age.
  • cafcpolo said:

    A question for the more clued up amongst us...

    So I've just had my annual pension statement through, currently estimating £17,800 pa for retirement with the initial 25% lump sum. This is based on retiring at 55, with no mortgage. Is this is a reasonable amount? Should I be plowing in more?

    When estimating these amounts, at what age do they assume you're going to pop your clogs?

    As an ex-financial adviser I would say -

    The annual pension is payable for life whether you died at 56 or 96.

    The pension stops paying when you die, unless you have something like a 50% pension to your partner, if you die first.

    The best placed person to answer whether a £17,800pa pension is sufficient is yourself.

    It really depends on your lifestyle.

    Remember that you would also get the state pension at 67, as is now or perhaps later depending upon your age.
    Also remember you will pay 20%tax on the state pension as your other pension uses up youth tax allowance.
  • I've been saving for my retirement and old age.

    £70 for a gramme of heroin.

    £25 for 10 diazepam.

    £20 for a bottle of scotch
  • cafcpolo said:

    A question for the more clued up amongst us...

    So I've just had my annual pension statement through, currently estimating £17,800 pa for retirement with the initial 25% lump sum. This is based on retiring at 55, with no mortgage. Is this is a reasonable amount? Should I be plowing in more?

    When estimating these amounts, at what age do they assume you're going to pop your clogs?

    So assume the 17,800 is in today’s monetary value? If so you are looking at roughly £26k with a full state pension. Could you live on that?
  • I'd ignore the figures tbh. Projected figs at 2% growth etc. 20 years ago the projected growth figs were 7.5% & 10%.

    Now days you have drawdown. No need yo take an annuity. Main thing to look at is your pension "pot" at retirement. £200k means you could take £50k tax free.....live on that for x years & then draw enough income to live on until state pension age (work pt too if 55/60). Reduce income when in receipt of state pension.

    You'll be very lucky up retire at 55 & live comfortably without working at all. I know lots of professionals with estimated income of c£35k pa at 55 & still not able to retire.
  • Ps. With drawdown 100% goes to your spouse/beneficiaries on death. Not 50% or even nothing like an annuity. If you die before 75 the whole sum left to your heirs is tax free.
  • I've been saving for my retirement and old age.

    £70 for a gramme of heroin.

    £25 for 10 diazepam.

    £20 for a bottle of scotch

    That’s what I like to see, people planning for the short term and not being a burden on society long term.
    That's it. Won't be using up precious resources after that!

    All those 75 year olds in their lump sum Mercedes blocking up the roads....
  • edited January 2019

    I'd ignore the figures tbh. Projected figs at 2% growth etc. 20 years ago the projected growth figs were 7.5% & 10%.

    Now days you have drawdown. No need yo take an annuity. Main thing to look at is your pension "pot" at retirement. £200k means you could take £50k tax free.....live on that for x years & then draw enough income to live on until state pension age (work pt too if 55/60). Reduce income when in receipt of state pension.

    You'll be very lucky up retire at 55 & live comfortably without working at all. I know lots of professionals with estimated income of c£35k pa at 55 & still not able to retire.

    Providing all stays the same contribution wise with no growth / decline, by the time I'm 55 my pot would be £520k. I'm sure I can live off that...I want to retire @ 55 god dammit.
  • AVC's a great way to claw back tax relief, I am sure most know this already but I started doing this a few years ago and the tax relief £sums are soooooo much better than any other investment so long as the pension you lump them into is solid in its performance and of course safe from Maxwell type thiefs.

    Remember also to claim further tax relief with your annual tax return if aplicable to your personal financial circumstances.
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  • cafcpolo said:

    I'd ignore the figures tbh. Projected figs at 2% growth etc. 20 years ago the projected growth figs were 7.5% & 10%.

    Now days you have drawdown. No need yo take an annuity. Main thing to look at is your pension "pot" at retirement. £200k means you could take £50k tax free.....live on that for x years & then draw enough income to live on until state pension age (work pt too if 55/60). Reduce income when in receipt of state pension.

    You'll be very lucky up retire at 55 & live comfortably without working at all. I know lots of professionals with estimated income of c£35k pa at 55 & still not able to retire.

    Providing all stays the same contribution wise with no growth / decline, by the time I'm 55 my pot would be £520k. I'm sure I can live off that...I want to retire @ 55 god dammit.
    Don't know your circumstances, but are you married/have a partner? Make sure they are filling up their pension as well. No point you having all the income and them not using up at least their tax free allowance when they retire.

    I've pretty much ceased my pension now and filling up my wife's for that exact reason. No point me paying 40% tax on some and her barely reaching the 20% band.
  • Rob7Lee said:

    cafcpolo said:

    I'd ignore the figures tbh. Projected figs at 2% growth etc. 20 years ago the projected growth figs were 7.5% & 10%.

    Now days you have drawdown. No need yo take an annuity. Main thing to look at is your pension "pot" at retirement. £200k means you could take £50k tax free.....live on that for x years & then draw enough income to live on until state pension age (work pt too if 55/60). Reduce income when in receipt of state pension.

    You'll be very lucky up retire at 55 & live comfortably without working at all. I know lots of professionals with estimated income of c£35k pa at 55 & still not able to retire.

    Providing all stays the same contribution wise with no growth / decline, by the time I'm 55 my pot would be £520k. I'm sure I can live off that...I want to retire @ 55 god dammit.
    Don't know your circumstances, but are you married/have a partner? Make sure they are filling up their pension as well. No point you having all the income and them not using up at least their tax free allowance when they retire.

    I've pretty much ceased my pension now and filling up my wife's for that exact reason. No point me paying 40% tax on some and her barely reaching the 20% band.
    Good shout.

    As for a pot of £520k. More than most would have & the tax-free element (£105k) could last you 5-7 years or so. Hopefully then the remaining £415k should have grown back to the initial £520k (give or take £20k) & by then the PA should be £15-18k so very little, if any, tax would be paid on any income taken.
  • Rob7Lee said:

    cafcpolo said:

    I'd ignore the figures tbh. Projected figs at 2% growth etc. 20 years ago the projected growth figs were 7.5% & 10%.

    Now days you have drawdown. No need yo take an annuity. Main thing to look at is your pension "pot" at retirement. £200k means you could take £50k tax free.....live on that for x years & then draw enough income to live on until state pension age (work pt too if 55/60). Reduce income when in receipt of state pension.

    You'll be very lucky up retire at 55 & live comfortably without working at all. I know lots of professionals with estimated income of c£35k pa at 55 & still not able to retire.

    Providing all stays the same contribution wise with no growth / decline, by the time I'm 55 my pot would be £520k. I'm sure I can live off that...I want to retire @ 55 god dammit.
    Don't know your circumstances, but are you married/have a partner? Make sure they are filling up their pension as well. No point you having all the income and them not using up at least their tax free allowance when they retire.

    I've pretty much ceased my pension now and filling up my wife's for that exact reason. No point me paying 40% tax on some and her barely reaching the 20% band.
    Good shout.

    As for a pot of £520k. More than most would have & the tax-free element (£105k) could last you 5-7 years or so. Hopefully then the remaining £415k should have grown back to the initial £520k (give or take £20k) & by then the PA should be £15-18k so very little, if any, tax would be paid on any income taken.
    The tax free amount would be £130K unless I'm mistaken.
  • Talking about pensions I left the UK in 1987. Recently I inquired about my UK state pension and with my 11 years of contributing whilst working there I will get about 70 quid a week when I retire age 65 (56 now). However I found out I can claim self employed status and pay arrears from 2006 about 138 quid for each year and by the time I retire I can get the full UK state pension! Makes sense as I would get that money back in the first 6 months hopefully if I live that long !! That with my US pension and my private pension savings I should be ok to retire if I ditch the missus LOL !
  • ct_addick said:

    Talking about pensions I left the UK in 1987. Recently I inquired about my UK state pension and with my 11 years of contributing whilst working there I will get about 70 quid a week when I retire age 65 (56 now). However I found out I can claim self employed status and pay arrears from 2006 about 138 quid for each year and by the time I retire I can get the full UK state pension! Makes sense as I would get that money back in the first 6 months hopefully if I live that long !! That with my US pension and my private pension savings I should be ok to retire if I ditch the missus LOL !

    You need 35 years NI contributions to get the full state pension.
    If you are 56, the pension would be payable at age 67.
    If you've paid 11 years, pay a backdated 13 years & pay a further 11 years to age 67, you would have made the 35 years.
    (If I'm correct).
  • edited January 2019

    ct_addick said:

    Talking about pensions I left the UK in 1987. Recently I inquired about my UK state pension and with my 11 years of contributing whilst working there I will get about 70 quid a week when I retire age 65 (56 now). However I found out I can claim self employed status and pay arrears from 2006 about 138 quid for each year and by the time I retire I can get the full UK state pension! Makes sense as I would get that money back in the first 6 months hopefully if I live that long !! That with my US pension and my private pension savings I should be ok to retire if I ditch the missus LOL !

    You need 35 years NI contributions to get the full state pension.
    If you are 56, the pension would be payable at age 67.
    If you've paid 11 years, pay a backdated 13 years & pay a further 11 years to age 67, you would have made the 35 years.
    (If I'm correct).
    Yes you are right retire at 67 and will make the 35 years. Still need to ditch the missus :)
  • Rob7Lee said:

    cafcpolo said:

    I'd ignore the figures tbh. Projected figs at 2% growth etc. 20 years ago the projected growth figs were 7.5% & 10%.

    Now days you have drawdown. No need yo take an annuity. Main thing to look at is your pension "pot" at retirement. £200k means you could take £50k tax free.....live on that for x years & then draw enough income to live on until state pension age (work pt too if 55/60). Reduce income when in receipt of state pension.

    You'll be very lucky up retire at 55 & live comfortably without working at all. I know lots of professionals with estimated income of c£35k pa at 55 & still not able to retire.

    Providing all stays the same contribution wise with no growth / decline, by the time I'm 55 my pot would be £520k. I'm sure I can live off that...I want to retire @ 55 god dammit.
    Don't know your circumstances, but are you married/have a partner? Make sure they are filling up their pension as well. No point you having all the income and them not using up at least their tax free allowance when they retire.

    I've pretty much ceased my pension now and filling up my wife's for that exact reason. No point me paying 40% tax on some and her barely reaching the 20% band.
    Good shout.

    As for a pot of £520k. More than most would have & the tax-free element (£105k) could last you 5-7 years or so. Hopefully then the remaining £415k should have grown back to the initial £520k (give or take £20k) & by then the PA should be £15-18k so very little, if any, tax would be paid on any income taken.
    The tax free amount would be £130K unless I'm mistaken.
    Yes, sorry.
  • cafcpolo said:

    I'd ignore the figures tbh. Projected figs at 2% growth etc. 20 years ago the projected growth figs were 7.5% & 10%.

    Now days you have drawdown. No need yo take an annuity. Main thing to look at is your pension "pot" at retirement. £200k means you could take £50k tax free.....live on that for x years & then draw enough income to live on until state pension age (work pt too if 55/60). Reduce income when in receipt of state pension.

    You'll be very lucky up retire at 55 & live comfortably without working at all. I know lots of professionals with estimated income of c£35k pa at 55 & still not able to retire.

    Providing all stays the same contribution wise with no growth / decline, by the time I'm 55 my pot would be £520k. I'm sure I can live off that...I want to retire @ 55 god dammit.
    However, caution had you done this last year took your £130,000 cash leaving £390,000 invested. There,s a bloody good chance you'd have lost 10% in current market , add on management fees and withdrawal fees and your £390,000 could be down to £348,000. As we know it's all about the long term, but short term can hit hard.
  • Rob7Lee said:

    cafcpolo said:

    I'd ignore the figures tbh. Projected figs at 2% growth etc. 20 years ago the projected growth figs were 7.5% & 10%.

    Now days you have drawdown. No need yo take an annuity. Main thing to look at is your pension "pot" at retirement. £200k means you could take £50k tax free.....live on that for x years & then draw enough income to live on until state pension age (work pt too if 55/60). Reduce income when in receipt of state pension.

    You'll be very lucky up retire at 55 & live comfortably without working at all. I know lots of professionals with estimated income of c£35k pa at 55 & still not able to retire.

    Providing all stays the same contribution wise with no growth / decline, by the time I'm 55 my pot would be £520k. I'm sure I can live off that...I want to retire @ 55 god dammit.
    Don't know your circumstances, but are you married/have a partner? Make sure they are filling up their pension as well. No point you having all the income and them not using up at least their tax free allowance when they retire.

    I've pretty much ceased my pension now and filling up my wife's for that exact reason. No point me paying 40% tax on some and her barely reaching the 20% band.
    Good shout.

    As for a pot of £520k. More than most would have & the tax-free element (£105k) could last you 5-7 years or so. Hopefully then the remaining £415k should have grown back to the initial £520k (give or take £20k) & by then the PA should be £15-18k so very little, if any, tax would be paid on any income taken.
    520k will be more than a lot of people for sure. But live to 95 and that’s 13k per annum without growth plus state pension from 67. On average about £1500 a month I would think. If that’s enough for you/your lifestyle all good.
  • Rob7Lee said:

    Rob7Lee said:

    cafcpolo said:

    I'd ignore the figures tbh. Projected figs at 2% growth etc. 20 years ago the projected growth figs were 7.5% & 10%.

    Now days you have drawdown. No need yo take an annuity. Main thing to look at is your pension "pot" at retirement. £200k means you could take £50k tax free.....live on that for x years & then draw enough income to live on until state pension age (work pt too if 55/60). Reduce income when in receipt of state pension.

    You'll be very lucky up retire at 55 & live comfortably without working at all. I know lots of professionals with estimated income of c£35k pa at 55 & still not able to retire.

    Providing all stays the same contribution wise with no growth / decline, by the time I'm 55 my pot would be £520k. I'm sure I can live off that...I want to retire @ 55 god dammit.
    Don't know your circumstances, but are you married/have a partner? Make sure they are filling up their pension as well. No point you having all the income and them not using up at least their tax free allowance when they retire.

    I've pretty much ceased my pension now and filling up my wife's for that exact reason. No point me paying 40% tax on some and her barely reaching the 20% band.
    Good shout.

    As for a pot of £520k. More than most would have & the tax-free element (£105k) could last you 5-7 years or so. Hopefully then the remaining £415k should have grown back to the initial £520k (give or take £20k) & by then the PA should be £15-18k so very little, if any, tax would be paid on any income taken.
    520k will be more than a lot of people for sure. But live to 95 and that’s 13k per annum without growth plus state pension from 67. On average about £1500 a month I would think. If that’s enough for you/your lifestyle all good.
    It is for most people.....once there is no mortgage or kuds around I have found that even a couple can live on £18k pa.
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