Pension

[Saddlesoap]

Thought I'd create a Pension thread as two threads have recently got me a bit concerned about getting old.

Do you have a pension? Private, work based?

I have a work one, but recently found out it has shocking reviews. Really need to tackle it, but I'm so confused.

 

[WilmaHun]

I have a workplace pension. I opted in to mine when I was 18 rather than waiting until I turned 21 (? - I think 21 is the age they automatically opt you in but could be wrong) so I built up a little bit in those extra 3 years of contributing.

I've been toying with the idea of opening a private one too, but not really sure if it's worth it if I've already got my workplace one.

My partner is self employed and doesn't currently have one. Whenever I mention opening one to him he always says "I'm only 25 I'll worry about that later!" but I think it's best to start it as soon as you can!

 

[Tommyb]

I work in accounting and have had a work place pension for 8 years. Luckily my current employer contributes the full 9% but I have worked with other companies who paid as little as 1% until the new rules came in. I currently have 20k in pension at 28 years old.

I also contribute 5% on top of my companies contribution so full is 14%. The standard advise is to contribute the percentage of half your age.

Waiting until you are older is such a bad idea. Best to start your and invest through a pension scheme. More chance of earning more when you need it.

There are calculators you can use online where they calculate how much you should be contributing based on your current wages and your retirement ages to work out how much you would need to draw a year/month once you retire.

 

[L.S]

Does anyone know how you find your old pensions from your old jobs?! I want to put them all in the same place

 

[Definitelyme]

I need to start my private pension, which I will do when maternity leave ends. I had been planning to anyway, but got a pension statement through from my employer and it’s laughable what I’ve had put away in 10 years. My husband has a private pension as he is self employed, and our financial man always recommends Virgin pensions, or Aviva.

 

[Megansnarkle]

I have three pots - an old work pension I moved to Nutmeg as I wasn't happy with it I the scheme it was in, I have a current work pension which I'm happy with and then a LISA for the pension benefits (rather than first time buyer benefits). I got a bit scared about six months or so ago about my pension pot and so I've been putting as much money in as possible.

The first thing to do would be to not look at reviews but rather performance, you should be able to download information about how the fund is performing. Then you can start to look at others and compare.

 

[Saddlesoap]

I have three pots - an old work pension I moved to Nutmeg as I wasn't happy with it I the scheme it was in, I have a current work pension which I'm happy with and then a LISA for the pension benefits (rather than first time buyer benefits). I got a bit scared about six months or so ago about my pension pot and so I've been putting as much money in as possible.

The first thing to do would be to not look at reviews but rather performance, you should be able to download information about how the fund is performing. Then you can start to look at others and compare.

So my workplace pension has £5600 and it's been open 6 years. No idea if that's good or not?! Doesn't sound it.

Oh I will look at Nutmeg cos I have a stocks and shares ISA with them already.

 

[JoeBloggs]

I’m 31, self employed with no pension. I know I need to look into it but I just don’t know what to do. To get any decent pension you need £200,000 at retirement and I just can’t see that happening without losing most of my wages.

My family who are very good with money have told me not to worry as I will inherit the estate as an only child but I still worry.

 

[My2pWorth]

The one thing life has shown me is by pension age you stop worrying. You aren't interested in having a new fitted kitchen or the latest gadgets and you end up spending less money. You spend more time appreciating things that don't cost a lot like gardening. All you want is a daily conversation, family and friends visiting and the odd day out. That's if you're lucky enough to reach that age.

 

[Megansnarkle]

So my workplace pension has £5600 and it's been open 6 years. No idea if that's good or not?! Doesn't sound it.

Oh I will look at Nutmeg cos I have a stocks and shares ISA with them already.

A lot depends on how much you have put in. You should be able to find a percentage figure which tells you how much the fund has grown (or shrunk) each year. Nutmeg perform pretty well.

The best way to up your contribution is to increase it by a percentage point or two each time your pay gets increased, that way hopefully you don't notice the hit.

 

[Shoequeen91]

I have pension with my work (which I honestly don’t know much about but I’ll definitely look into it) and I have a private pension which I contribute a certain amount to each month. I also save a fair amount each month.

I just don’t want to be working forever. I’m also really fearful that by the time I’m at retirement age state pension won’t be a thing anymore, just the way the government are going.

 

[Saddlesoap]

A lot depends on how much you have put in. You should be able to find a percentage figure which tells you how much the fund has grown (or shrunk) each year. Nutmeg perform pretty well.

The best way to up your contribution is to increase it by a percentage point or two each time your pay gets increased, that way hopefully you don't notice the hit.

Genuinely can't find any information about it. The total just looks to be what my employer and I have paid in. I do pay an extra 2%, maybe I should just put that and a bit more in a private pension instead.

Do the work ones take the money pre-tax though. Eurgh it's so bloody complicated.

 

[Suzesnooze]

Does anyone know how you find your old pensions from your old jobs?! I want to put them all in the same place

You could try this: https://www.findpensioncontacts.service.gov.uk/

Or if you remember all the companies you've worked for, you can email them?

Genuinely can't find any information about it. The total just looks to be what my employer and I have paid in. I do pay an extra 2%, maybe I should just put that and a bit more in a private pension instead.

Do the work ones take the money pre-tax though. Eurgh it's so bloody complicated.

I've always been advised that paying into a Workplace pension is better than a Private Pension as your employer contributes on top of your own contributions? However, I know the last Company I worked for had a poor workplace pension, they didn't offer much of a contribution, I think it was only the minimum which is 3%.

 

[Murphygirl]

Genuinely can't find any information about it. The total just looks to be what my employer and I have paid in. I do pay an extra 2%, maybe I should just put that and a bit more in a private pension instead.

Do the work ones take the money pre-tax though. Eurgh it's so bloody complicated.

my workplace pension takes the pension off before tax so you are getting the benefit of paying less tax on what's left after your pension deduction

 

[Peaches_xox]

I’ve been paying into a work pension since I was 18. I’m 30 now. I pay 7% & my employer matches it & it’s an aviva one however when I get the letters saying how much I might get at retirement I’m like bleeping hell that’s not a lot!

 

[OnlyHereForTheLolz]

You can’t change your work pension. You have to go with the provider they pick or you lose the company contribution.
However you can always open a private pension

 

[Bitofthebubbly]

The one thing life has shown me is by pension age you stop worrying. You aren't interested in having a new fitted kitchen or the latest gadgets and you end up spending less money. You spend more time appreciating things that don't cost a lot like gardening. All you want is a daily conversation, family and friends visiting and the odd day out. That's if you're lucky enough to reach that age.

My in laws are retired and spend money like water. Their house is all recently done up, they go on multiple holidays a year, day trips, mil loves shopping, they pay a ridiculous amount for Sky tv, they may not have the latest iPhones or gadgets but they certainly like to spend and experience things, within their means of course. They are boomers (nice ones) who have done well with their investments and managed to retire relatively young in their mid/late 60’s. I do get where you’re coming from though. I’d imagine most of us youngsters will be working until at least 75. I’ve been a sahm for a few years now, just starting to think about finding work, so I reckon I’m completely fucked as I’ll be only working part time anyway. I might look into a private pension if I can afford it. My partner has his work place pension but the predicted amount doesn’t look great, although they have different funds you can choose to invest in, some higher risk than others, and he wouldn’t lose the workplace contribution for switching around as its all under the company scheme. So that’s something I need to get him to look into as he’s on the one they put everyone on automatically which is relatively safe but low returns.

I only really started worrying about this kind of thing a couple of years ago (I’m 30). I really wish I was more informed/bothered about this stuff from a younger age.

 

[justbeingnosy98]

I’m so obsessed with my pension I have always been really worried about being poor when I’m old so always contributed loads! I am also really conscious that I might have children at some point so may be part time/not working, so I’m putting in a lot while I’m young and carefree.

I was at my previous employer for 6 years (age 23-29) and have £25,000 in that workplace pension now. They contributed 8% and in the last few years I contributed 4.5% so it was a good amount going in.

Just changed job and I’m contributing 6% of my salary and new employer will put in 6.6%. I’ll move the old employer pension to the new one, just for ease.

It’s really easy to move pensions FYI, just a quick form but you do need to know the details. I had a tiny one that I moved a few years ago.

I am also v fortunate as my parents set up a private pension for me when I was 11/12ish. They have been making the minimum contributions of £2,880 since then and it’s worth quite a lot now.

 

[no-no]

Bloody hell, I’m going to have to seek out a Wayne Rooney when I retire. Until recently I never earned enough to even justify a 0.01% salary sacrifice. Going to look into it before Christmas, but still apprehensive about the security of it all. Goalposts can and will be moved as far as I’m concerned but if it means paying less deductibles it’s fine.

 

[Fofoca]

I work in accounting and have had a work place pension for 8 years. Luckily my current employer contributes the full 9% but I have worked with other companies who paid as little as 1% until the new rules came in. I currently have 20k in pension at 28 years old.

I also contribute 5% on top of my companies contribution so full is 14%. The standard advise is to contribute the percentage of half your age.

Waiting until you are older is such a bad idea. Best to start your and invest through a pension scheme. More chance of earning more when you need it.

There are calculators you can use online where they calculate how much you should be contributing based on your current wages and your retirement ages to work out how much you would need to draw a year/month once you retire.

Thanks for sharing. Do you mind saying what your minimum goal for your pension pot is? I know as much as possible is probably what you want, but what’s the bare minimum you’d need to survive? Just ignore if I’m being too nosey!