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
Pension article in today's Guardian.
Good Morning, Midge8290,
I will be quite clear about what I am doing: I have been getting a pension for several years now. But I will say this: Back on 1st June 1983 my boss and I joined the same site. A few months later we were talking about pensions and he said his broker had recommended one for him, he was paying monthly and he was getting 96 to 98% credited to his pension. When he saw the look on my face he asked what was wrong? I told him my broker had told me to go for an annual payment and the worst I had got was 105% and the best was 107%. I will not repeat his reply. But as others have stated I would go for an IFA and ask about monthly versus annual payments. You just save monthly and in February of each year you work out how much you can pay and them make the payment in March. I didn't really start mine until I was 40+ and the nearest I got to my maximum payment was about £2.55. Your retirement will certainly benefit from the length of time you have left.
As you suggest F.E. I am not qualified to advise regarding pensions.
It so happens that I retired in my early 30s. at at 72 this year I manage very well thanks. I know nothing about pensions but I do have some idea about living life to the full.
It might seem difficult at times to save into a pension but in the end its well worth it. I paid into two pensions over the tears with two employers. It wasn't optional and now I've been retired since I was 60 I've had many times more money back than I ever paid in, even though I had to take a reduction of 11% in my last scheme due to retiring early (not my choice I was made redundant)
That's YEARS of course but 'tears' seemed appropriate at times - I hated my last few years at work and was really glad to take early retirement.
If yours a medical issue I truly sympathise. However the "State" has no money, and relies on taxation to fund State benefits.
Clearly you have taken a lot more out of the "Pot" than you put in, but that is unsustainable if everyone did it. As I said, if a medical problem I hope you are funded OK. In My case I worked for 40 years here and abroad, paid into pensions all that time and the only item I have ever had from the "State" is the Winter fuel allowance ( not even Dole or Job Seekers, fortunately), and the State pension.I also was in a Reserve military unit following full time service so had 2 jobs for about 20 years.I continue to pay quite a lot of Income Tax on my pensions, and am far better off than would have been the case without them.
I hope you are funded OK john bunyan Yes thank John well enough but my wife was self employed so I became a sort of "house husband". It was the best thing I ever did you should all try it some time.
This thread is now locked and can not be replied to.