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Moving on from the NHS pension post, interested to see where people think their pension will actually come from. So do you know the %'s of salary been put into your pension? I'll start:
[b]Money Purchase Scheme[/b]
Employer - 9%
Employee - 0% (work for myself)
Taxman - 2%
And based upon it ought to be in the range of half my age as a percentage, not enough..., but business ain't great at the moment.
And as its a Money Purchase Scheme, the return is entirely in the hands of the market, especially when I'm due to retire and need to 'cash' it in.
No pension.
Who else finds these threads very scary?
Defined benefit scheme (final salary)
Company pays something like 12-15%
I pay 6%
Money purchase scheme
I pay 5%, company pays 13%.
Defined benefit scheme (currently final salary, but moving to average: 1/60th of average salary for every year paying in)
I pay 6.4% (soon to be 9.6%)
Employer pays ~14%
Mixed managed scheme of some sort
Company paying 9%
I am paying 12%
I started a bit late (age 29) because until then I was poorly paid and wanted to spend my earnings on having fun. Funny thing is, my intention is to work for as long as my heath permits and I can do something useful. But my idea is to see if I can slowly reduce my working hours from age 55.
Nowt.
Check the % fees too, they can make quite a difference
I'm paying in 6% and the company 12%.
Of course this is meaningless unless you know the age of the person and what the %age is of.
Even having started young it's scary how little this will provide for retirement. Those on defined benefits paying a similar amount are getting a great deal. Mine will be nowhere near that level.
If you are on a final salary or defined benefit scheme your employer will be paying 28% and rising
My employer is paying 20.7% for final salary. Me 6%, so not far op jp.
Who else finds these threads very scary?
It's utterly terryfying. My wife has a still pretty good final salary scheme through BA, even though they've (rightly) had to substantially alter the terms.
We are setting outselves up for a difficult period in 20-30 years time when there will be a whole generation of pensioner who despite having worked and saved extremely hard, won't have a pot to pee in, while others are largely sitting pretty.
I will not be sitting pretty as I have nothing, but intend to die in fiery downhill crash with a "Danny Hart" style tail whip and petroleum tanker involved the day after I retire!
Nothing - I'm already spending it.
I pay 5% company pays 13%. fortunately had 10 years on final salary scheme and left on a decent salary, so not too bad.
Contractor. No pension.
My main concern is the 68 retirement age. The average life expectancy for a man in my career retiring at 65 is 68 so, based on averages, I won't get any of my pension anyway.
No pension. I've not heard a single argument to convince me that paying into a pension is better than owning a property that can be let out come my retirement. The amount of money I would need to pay into a pension pot to have a similar income to what I will from renting out the flat far outweighs the mortgage premiums on the property.
No pension. I've not heard a single argument to convince me that paying into a pension is better than owning a property that can be let out come my retirement
Even with the tax relief on a pension?
We are setting outselves up for a difficult period in 20-30 years time when there will be a whole generation of pensioner who despite having worked and saved extremely hard, won't have a pot to pee in, while others are largely sitting pretty.
I think this is a very fair point.
Already, a lot of fairly low paid people (private and public sector) have paid into their pension fund for years, and ended up with a pension that is lower than the breadline (so they get topped up by benefits, in which case it was pointless saving for all those years)... then there's a whole load whose pension is just above the breadline, which means they get refused any benefits, and lose a huge chunk of their modest pension in council tax etc.
We'll see more of this... and more where the pension fund has gone up the spout, and people end up getting next to nothing back from their pension fund.
[i]No pension. I've not heard a single argument to convince me that paying into a pension is better than owning a property that can be let out come my retirement.[/i]
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No one said is was better, its just you ought to be covering yourself both ways - plus you are missing out on the tax benefits.
Zulu
Agree, for an awful lot of people they'll never earn enough to even live on (just look at the benefits they receive), therefore for them its pretty pointless even saving, and tbh probably wrong for the Government to be even encouraging them into a pension.
8 from me and 8 from employer. Percent, not pounds!
I thought I wasn't doing too badly. Can I ask what kind of companies are paying 12 and 13 on money purchase? Or is it age related increases? I'm 32 btw
Even with the tax relief on a pension?
Yup.
Vague rumour at work is a transfer of employer with a new pension scheme at 3% personal contribution & 21% company contribution 😯
I may well change my plans if this happens, but I'm not holding my breath.
i have 12 years of final salary from last job, but on the basis that i won't be retriring for 30years i doubt it will be worth anything. As for the new job, it would be nice to be able to save something, but not possible at moment.
The thing that needs to be dealt with is a house, it would be nice to buy something, if only so i don't have to pay rent out of the pitance i expect to have post decrepitude enforced idleness, i suspect retirement may not actually be an option for anyone earning average money.
i have 12 years of final salary from last job, but on the basis that i won't be retriring for 30years i doubt it will be worth anything.
Will it not be linked to inflation?
Will it not be linked to inflation?
Yes it will, but government changes have changed RPI and CPI around which is how the uplift is done, obviously now the uplift is worse than it was! I just feel that the goalposts will be changed and changed again.
30 years is a long time after-all and a lot can and probably will change.
I pay 11% and a quick googlwe suggests my employers pay 24.4%
Who else finds these threads very scary?
Yes. I have a few years of a civil service pension, a few years of a stakeholder pension. They are likely to produce beer money at best. Read this week that the average private sector worker has a pension pot of £30K to achieve a pension on a par with their public sector equivalent worker they would need a pension pot of £600k. So sadly I too forsee this:
We are setting outselves up for a difficult period in 20-30 years time when there will be a whole generation of pensioner who despite having worked and saved extremely hard, won't have a pot to pee in, while others are largely sitting pretty.
Hence the flying ox and others looking at alternatives. It's hard not to be pessimistic. 😕
Jeez I'm being ripped off- no employer I've ever worked for has paid over 6%. It's probably not wise but I'm taking a year off from paying into one as I've just changed job and need to save money for a wedding.
Self: ~6%; employer ~10%.
Earlier this year after a 'consultation' period or whitewash as it was decided before they announced the consultation, my company raised my contribution from 5% to 8% and reduced there contribution from 11% to 8% for 1 year and then next year it will alter again to 9% for me and 7% for them. My company is a global outfit owned largely by a number of German banks. I fear for the future......
Jeez I'm being ripped off- no employer I've ever worked for has paid over 6%
As I see it, the employer's contributions are your pay as well.
I pay 6.4% employer pays 14.9%
These look to be changing to 9.6% and 12% approx. But this is still to be worked out.
I wish the government would just give everyone a decent state pension and noe of us would have to put up with the pension issues.
For me the biggest issue is that my retirment age is being increase to 68. So looks to me like i might never collect anything anyway.
If i take my pension early at 65 i will get approx £9,000 a year. Hardly gold plated.