Pension

[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.

 

[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

 

[Saddlesoap]

Thank you! I work for a small business so there might be room to negotiate but like I say, they're pretty stingy...although I might raise it with them in my next annual review. It looks like I can increase my contributions but my employer needs to arrange it, so I'll ask them to do it. I do have a private pension with PensionBee (they tracked down and transferred a couple of long-forgotten pensions) so I can set up a direct debit with them.

I increased my contributions a while ago. It appeared very easy, I just emailed manager to say how much I wanted to increase it and it was done. Think it must be easy to apply on a payroll system.

 

[Emerald37]

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

You can write to the hr department at your old job asking for the information. They can tell you who administers the scheme and contact info

 

[Flowergirl14]

I am retiring in over 10 years, and recently started thinking seriously about pensions. This year I have upped my pension contributions at work from 5% to 40%, the maximum allowable. It means serious cutting back on my spending, but it is very tax efficient. I know I am fortunate to be able to do this. Also, I can reduce my contributions at any time. Just see how it goes for now. Plus I can withdraw up to 25% once I get to 55, if cash flow becomes a problem. Definitely advise any people to start a pension as soon as possible. I don't believe the state pension will be around forever.

 

[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.

 

[Megansnarkle]

I have 8k in two pension pots. One's an old work place pension and the others the current one. The current one I've recently changed to lower be contribution to 5% as upto now it's been 10% and I do plan on increasing again once I've got rid of my credit card.
What investment risk do you guys put? I did have mine on medium risk but changed to high risk last week. I can't seem to figure out or not even sure I can change my old workplace pension to a different risk as I'd rather than being high risk since no more is being paid in and keep my current one at a lower risk.

My personal pensions are set at a 7. I'm late 30s and know that I have time for things to smooth out one way or another.

 

[cupofyourfinest]

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.

Similar situation here, but I've got 10+ years on you. I had meant to look into it years ago but as usual, you think, young, free, live your life etc. Now it's becoming reality that I've only like 20 years left of working as such and it's put the frighteners up me.

 

[hydeist]

I have 9 years in a final salary pension which I’m very fortunate for only being 30 now it’s very rare, was abit pissed when it was closed but I’m very greatful for the contributions I’ve got already.
I’m now in a new scheme which is a total of 21% mine & my employers contributions combined, my contributions have increased massively since going into the new scheme but I’ve always been one for ensuring I’m settled for the future, fortunately had good advice from others and immediately started putting away money I wasn’t use to.
Also contribute each month to a LISA will look at increasing each month soon won’t be a massive amount but like I get X amount each month for free it will pay for a luxuary holiday when I come to retire.

What age do people want to retire at? I’m hoping by 60 which yes is very unlikely nowadays.

I'm in a defined benefit/final salary scheme and the rarity of them makes me never ever want to change job until I retire even though I'm only in my 30s

 

[hehehe]

I have a pension question wondering if someone can help me understand. So my total is the amount I've put in and the company as well. I've selected high risk investment for now and it is doing well over the year but why does this matter and when would it show as the amount in there doesn't change depending on it?

Markets have been shite the last 3 years so everyone who was in "growth" (risky) assets in 2020 would've suffered deep losses that year, and when the markets subsequently rebounded, would be just breaking even, and it's not been great since then either, with ups followed by downs in the stock markets. I'm not sure how long you've been invested, but I'd say flat returns are what you'd expect to risk assets in the last 3 years. Safety assets haven't done any better -- bonds got fucked up in 2022 after the disastrous Liz Truss budget and it's been a mess since then. Cash has done better than expected due to higher interest rates, but with rates recently coming down we can kiss that goodbye as well.

 

[rainbowlemon]

You’ve read it correctly.

You know when it’s all negative and red you should probably stop checking for the year or two.

 

[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.

 

[Fofoca]

No it's fine

At the moment I'm on track to have 500k in there by time I retire at 67.. plus I'm hoping my house will be paid off by then which is worth 525k at the moment.

So right now my projected pension would be approx £9,339 state pension a year plus £16,000 from my work pensions. So I'd be getting around
£2k a month once I retire (after tax of course).

My partner was always taught by his parents the importance of a pension so has around £70k in there at 33 so he will have more than me. Between us we should be fine if everything goes to plan.

Thank you very much! I just attended a pensions for dummies course but the info was presented differently. I actually have a follow up session next week so at least I’ve got more questions

In the example you gave, I thought 500k meant you drew a pension of £41666 a month (500k/12 months) and I mean, I wouldn’t complain but I definitely don’t need that much a month to live on!!!

But the work pot plus state pension fits into what i understood.

Thank you again for being so open. You’ve really really helped me out. I’m older but I lost many years of contributing. Had assumed
I was paying in but wasn’t so that’s been a real shock! I’m still on track though, so to anyone reading - it’s not too late!

 

[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

 

[HoGi]

Swift exit it is then!!! Party on my yacht, you’re all invited.

Could I be absolutely lost because I’m on a defined benefit and maybe just get one smaller figure? I think that means that I could live until I’m 1000 years old and keep drawing my pension without my pot running out?

(and thank you too!)

With DB schemes your pot isn't really as important.

You should get an annual benefit statement each year which will tell you the current value of your pension benefits and a projected value to normal retirement age (calculated on the assumption you stay earning the same until retirement age). This will be payable for life and will have reductions if you retire before the normal retirement age. Additionally you can usually convert some of your pension to get a tax free lump sum.

You can top up your pension with additional contributions so it might be worth calling your scheme to see what options they have for doing this

 

[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%.

 

[OhMyGaad]

Anyone know much about Lifetime ISA? From what I gather you must open before 40 and can't pay in after 50. Is it worth it if you have NHS pension?

 

[Millyve]

I have 9 years in a final salary pension which I’m very fortunate for only being 30 now it’s very rare, was abit pissed when it was closed but I’m very greatful for the contributions I’ve got already.
I’m now in a new scheme which is a total of 21% mine & my employers contributions combined, my contributions have increased massively since going into the new scheme but I’ve always been one for ensuring I’m settled for the future, fortunately had good advice from others and immediately started putting away money I wasn’t use to.
Also contribute each month to a LISA will look at increasing each month soon won’t be a massive amount but like I get X amount each month for free it will pay for a luxuary holiday when I come to retire.

What age do people want to retire at? I’m hoping by 60 which yes is very unlikely nowadays.

 

[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.

 

[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!