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Morning Sid/Everyone.
If i may i will explain my/wifes position.
Me,in receipt of a pension from Bae systems.Wife receives Tesco pension,also due to retire this Sept.
Rewind to 2014.Wife and i decided to take 25% from our respective company schemes,my wife commenced her one and only pension.I paid the additional tax and took the remainder which we banked in Isas.We imediately commenced new pensions with our companies.The monthly pensions we receive have been used to put £500 each into our respective company SAYE schemes.My wifes Tesco shares which she bought and kept have netted her £8000 special dividend with 13000 shares to sell as and when.Mine should net approx £100000.
The pensions we recommenced in 2014 have again been taken,this time both have paid all taxes and lump sums put in tax free Isas.
We will retire with approx £220000-£240000 in the bank,sheltered from tax.
End result is 2 x state pensions + 1 company pension each will give us £2000 pcm.
Personally I would rather have £220k etc under my roof than a pension fund where the money can go up and down like a sparrow on a dung heap.How much will a company give you per annum for £220k ?
@Chelwood Try moneyadviceservice org guaranteed-income-for-life tool
The amount a company will pay you depends on your age and the age of your partner, your post code, your health, and whether you want payments to go up each year by a fixed amount or by inflation.
Chelwood similar thinking to me but I would seriously consider having as much as possible in an isa with good high interest investment trusts or shares, annualties, once bought, are goodnight to money from the family .
Chelwood, here is another option for those out there who still have 20 years + to retirement, which my wife and I took, and must say this is specific to us and may not suit everyone. I used to work for British Aircraft Corporation as a Toolmaker, but changed direction and went into Financial Services where I completed 20 years before retiring early. The knowledge gained made me think Pensions would not be the best route for us, albeit we didn't stop them. We bought some Investment Properties (gradually) and held them for on average 12 / 15 years. Over this time span we on average generated £22500 per annum in total profit after paying all Taxes and Maintenance. During this same time span this enabled us to have many Long Haul Holidays around the world finally visiting 68 different countries. My wife became totally disabled and we then sold them, and luckily for us making a total net profit after all costs and capital gains tax of just under £1M .
Moto is, you never know what is going to happen in life, so do what you can whilst you still have your heath, save for the future yes, but enjoy your life along the road to retirement and remember your pension(s) are always going to be subject to Income Tax, including the added Government Pension.
Morning
Sorry to hear about the circumstances with your wife.
My own opinion is more than ever we have to look outside the box,so to speak.The days when the wife stayed at home and Dad worked 9 to 5 are long long gone.
I have no issue with pensions but think it is short sighted to think they are the be all.
The pension provider is in business to make money and keep there shareholders happy and myself and others were dissuaded from taking all our money.If everyone did there would be no shareholders and no pension company.
Finally i do believe our kids should be taught about financial services and their workings at school because few have any idea of the future they are walking into.
Ref your last paragraph Chelwood I fully agree, and also teaching children about general financial responsibility would go a long way too. So, so many young adults who get themselves into a mess with varying kinds of credit etc without fully understanding the implications of it.
In full agreement with teaching children about finance and day to day budgeting. Whilst having dinner when my children were 9&10 I mentioned that I had been promoted, and got a good pay increase, quick as a flash my son wanted to know how much, and suggested that he and his sister might have an increase in their pocket money. They both manage money well, and my daughter after completing Uni at age 20 went on to buy her first flat 2 years later. I have often thought that in retirement that I might contact a local school to offer guidance to pupils in this subject. JJ
Chelwood, " I do believe our kids should be taught about financial services and their workings at school because few have any idea of the future they are walking into".
I couldn't agree more. Maths classes should include sections on good and bad debt plus topics such as mortgage Vs renting, compound interest and APR. I have been home schooling my 15year old during lockdown and working with him but I feel that some of the maths subjects could be replaced with more relevant topics so I have given him some extra guidance. Martin Lewis (MSE) has some good guides for both young and old alike.