Starting a Personal Pension Plan

[transformer999]

Having just gone past the big 4 0 I was giving some thoughts about my future....especially the uncertainties that I face today going through a divorce and dealing with many other matters on top.

The future on welfare benefits is also changing every day...and every new party that comes to power has a new set of rules and changes to the system.

So I was thinking about my pension...and I did not want to be on benefits for the rest of my life and at the moment I am on benefits I was wandering if I could have a personal pension plan that I could pay in to?

Is there any pro's and con's.....good and bad points that anyone can add to this thread which will make it easier for me to decide if it is a good idea or not...or is state pension the only thing to look forward to in old age.....that's if I make it that far?

[mgfboy]

Re: Starting a Personal Pension Plan

There is nothing stopping you having a personal pension, but remember your money is tied up to at least 55 and even then you can only have 25% back as tax free cash.

I would advise you see an IFA( they may charge you a fee) to go thought the options.

[MrsD]

Re: Starting a Personal Pension Plan

and get quote lots of them

it costs a lot for a decent private pension

I had a quote in my last job, I paid in 80 and the company paid in 120
10 years to retirement
i'd have got 1023 per YEAR

not worth it, better to put it under the bed

I've also had a company pension go bust and a personal pension disappear into limboland, never to pay out
so I'm a big fan of keeping a hold of what little money I've got

[helmsman]

Re: Starting a Personal Pension Plan

and get quote lots of them

it costs a lot for a decent private pension

I had a quote in my last job, I paid in 80 and the company paid in 120
10 years to retirement
i'd have got 1023 per YEAR

not worth it, better to put it under the bed

I've also had a company pension go bust and a personal pension disappear into limboland, never to pay out
so I'm a big fan of keeping a hold of what little money I've got

yep couldnt agree more, I intend to take 25% in May on 60th B/D. already booked 2 weeks in florida, paid in for 30years not worth a light just over a grand a year.

[SXGuy]

Re: Starting a Personal Pension Plan

and get quote lots of them

it costs a lot for a decent private pension

I had a quote in my last job, I paid in 80 and the company paid in 120
10 years to retirement
i'd have got 1023 per YEAR

not worth it, better to put it under the bed

I've also had a company pension go bust and a personal pension disappear into limboland, never to pay out
so I'm a big fan of keeping a hold of what little money I've got

Exactly what i was going to say!

Goverment dips into pension funds all the time, you will be left with nothing.

Better off keeping it under the bed, or paying into an online high interest savings account, normally high interest for max of 12 months so just open new accounts every year and shift the money over.

If you have a bit saved up and dont need to use it at any point, a cash ISA would give you a little better return than a high interest online account. And you got around 4 days before the new tax year, so if you got some money now you can have 2 cash ISA's working for you in 1 year.

ISA's were never that great for me, as i calculated the money id earn was about the same as 1 month of saving, but an ongoing process may work for you.

Last time i looked the max was £3500 a year, so if you took one out monday and another on or after 6th april, you could have £7000 in ISA's, think it will return about 500 - 1k a year. (dont quote me! worked this out way back when i had money before buying a house, could all be different now lol)

[mgfboy]

Re: Starting a Personal Pension Plan

Pension planning takes a serious % of your income. To get the sort of pension a long term civil servant gets , you would need ball park to pay in 20/30% of your income for 30 years.

As a rule of thumb we used to say a minimum of 10% of your income was the minimum you should pay in and that was when returns and annuity rates where much better!!!

The only thing thats saved alot of people in retirement was the fact over the last 20 years or so property prices have increased allowing people to either sell/downsize or do equity release and also people parents have died leaving them property to sell.

Pension plans are only one way of saving an I used to advise people to spread the risk, in all sorts of things cash isa's, buy to lets etc.

[mgfboy]

Re: Starting a Personal Pension Plan

and get quote lots of them

it costs a lot for a decent private pension

I had a quote in my last job, I paid in 80 and the company paid in 120
10 years to retirement
I'd have got 1023 per YEAR

not worth it, better to put it under the bed

I've also had a company pension go bust and a personal pension disappear into limboland, never to pay out
so I'm a big fan of keeping a hold of what little money I've got

yep couldn't agree more, I intend to take 25% in May on 60th B/D. already booked 2 weeks in florida, paid in for 30years not worth a light just over a grand a year.

Exactly what i was going to say!

Goverment dips into pension funds all the time, you will be left with nothing.

Better off keeping it under the bed, or paying into an online high interest savings account, normally high interest for max of 12 months so just open new accounts every year and shift the money over.

If you have a bit saved up and dont need to use it at any point, a cash ISA would give you a little better return than a high interest online account. And you got around 4 days before the new tax year, so if you got some money now you can have 2 cash ISA's working for you in 1 year.

ISA's were never that great for me, as i calculated the money id earn was about the same as 1 month of saving, but an ongoing process may work for you.

Last time i looked the max was £3500 a year, so if you took one out monday and another on or after 6th april, you could have £7000 in ISA's, think it will return about 500 - 1k a year. (dont quote me! worked this out way back when i had money before buying a house, could all be different now lol)

So interesting views and some slightly misinformed, as I said earlier if you want proper advise find a good local IFA and have a chat with them if you seriously want to save for the future.

[SXGuy]

Re: Starting a Personal Pension Plan

I also heard an advisor tell me once that to have a decent pension in later life if you hadnt already started by the time your 25, you would need to take your age as a percentage, and put away that much of your weekly/monthly income.

Isnt so easy when you think about it, im 34 now, doubt id afford to stick away 34% of my income!

[mgfboy]

Re: Starting a Personal Pension Plan

I also heard an adviser tell me once that to have a decent pension in later life if you hadn't already started by the time your 25, you would need to take your age as a percentage, and put away that much of your weekly/monthly income.

Isn't so easy when you think about it, I'm 34 now, doubt id afford to stick away 34% of my income!

I've never seen that one before , but it doesn't seem that far off. Unfortunately it always a balance of living today or living tomorrow