Private pension, yes or no

  Midge8290 11:33 14 May 2018

Hi all, I just have a free questions about a possible private pension and whether it's worth it. I've asked a few questions that are not relevant to me but either way I haven't found answer anywhere so hopefully it may help others

1) if I set up a private pension and pay monthly, and all of a sudden I can't afford to pay anymore for a while/at all, will I loose all the money I paid in?

2) does it affect benefits I may have now like help with rent, council tax, working tax credits?

3) how much would I be looking at to have a some what comfortable future if I want to retire at say 55. I'm 28 now.

4) what about tax? Do u get taxed on all your deposits is it there a limit?

Thanks for all your help

  Forum Editor 11:38 14 May 2018

We are not qualified to advise on personal pensions. I suggest that you read this.

  Pine Man 15:48 14 May 2018

The FE is obviously correct BUT surely the poster is asking the wrong group anyway?

I get the impression that most of this forum's members are drawing pensions rather than setting up new ones;-)

  LastChip 17:27 14 May 2018

Because there are so many variables in your question, it's impossible to answer. In any case, as the FE has already implied, you can only receive advice on pensions from a qualified advisor and he/she would have to do an in depth review of your circumstances, income, expectations and attitude to risk.

I will however give you a couple of things to think about; if you are 28 now, and thinking of retiring in 27 years time, how much do you think you'll need to live on, keeping in mind inflation? Keep in mind, according to government statistics, average wages have risen about 61% over the past 18 years. If you have or are buying your own home, you'll have less outlay than if you rent throughout your life. Why? Because a mortgage will (presumably) be paid off, whereas rent will almost certainly increase over the years.

Only two elements of a very complex picture. And that's why you need top notch professional advice.

  rickf 17:52 14 May 2018

On a broader note, if can afford to save then starting now is a good thing whatever means you take.

  HondaMan 09:03 15 May 2018

The OP needs independent advice from an IFA (Independent Financial Adviser). I say independent because banks, insurance companies and other bodies tend to offer only their own products. An IFA will make available ALL sources of pensions and other such schemes.

  Cymro. 11:07 15 May 2018

So you are just 28 years old and already you are worrying about your pension. Do what I do and live for today. Anything you get as a private pension will count against you regarding means tested state benefits.

  john bunyan 11:42 15 May 2018

I totally disagree with the last post. If you do nothing then you will get the state benefits . Even the maximum OAP plus extras is just enough, whereas a good company or private scheme started at 28 (I started at 21) could give you a pension worth 5 - 10 times the size of a state one.

  john bunyan 11:44 15 May 2018

Correction “ could be 3 - 6 times the value of a state one”

  Forum Editor 11:58 15 May 2018

"Do what I do and live for today."

That is the worst possible advice as far as pensions are concerned, and illustrates why I said we are not qualified to advise here.

You are acting very sensibly by thinking about your pension now,and you need sensible advice.

  oresome 20:37 15 May 2018

"how much would I be looking at to have a some what comfortable future if I want to retire at say 55. I'm 28 now."

This is a big ask.

You want to save in 27 years enough money to finance a comfortable retirement that may possibly last 40 years or more.

The only sure thing is that the earlier you start saving the better. The counter argument to this is to live life to the full while you are fit and active.

This is a choice some have been lucky enough to make in the past, while for others simply getting by day to day was the priority.

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