State Pension Age Up Again

Save from 21 to 30, then stop. You will have a bigger pension than a saver who starts at 30 and stop at 70. The miracle of compound interest, Einstein's 'eighth wonder of the world’

Read this article from the Telegraph.

http://www.telegraph.co.uk/finance/...or-10-years-pays-more-than-saving-for-40.html

It illustrates why putting off saving for a pension is completely the wrong thing to do.

Another article making the same point here.

https://uk.scalable.capital/investing-retirement/how-a-10-year-saving-scheme-can-replace-a-pension/

I am in the fortunate position to have been in a pension scheme since the age of 17 - I am now 56. Working in Financial Services sector means its always been a good deal -I was in a DB scheme right up until the turn of this year when my employers eyed up the main chance and cut to a DC scheme but its still a pension. Don't mean to sound smug but having seen the growth over time of my pension investments I can see why this would make sense though I'd urge people to keep saving beyond 30 anyway. Its a good habit to have.

Funny thing was compulsory enrolment into a DB pension scheme at 17 seemed like robbery - they were taking beer tokens off me !!! As you grow up and older you realise what a favour has been done for me.
 
Compulsory enrolment was great for me in the 70s too.
It meant even though I could only afford one night out a week, and a couple of pints at that, I was still saving for my future, which now I have got there with no mortgage and debt free means I have more money available to spend on anything than at any time in my life.

It was the witch Thatcher that de regulated pensions.
 
My mate Simon is a few months older than me. due to the recent changes he will retire a year before me. Why don't they do they changes by reference to school years rather than tax years!
 
I am in the fortunate position to have been in a pension scheme since the age of 17 - I am now 56. Working in Financial Services sector means its always been a good deal -I was in a DB scheme right up until the turn of this year when my employers eyed up the main chance and cut to a DC scheme but its still a pension. Don't mean to sound smug but having seen the growth over time of my pension investments I can see why this would make sense though I'd urge people to keep saving beyond 30 anyway. Its a good habit to have.

Funny thing was compulsory enrolment into a DB pension scheme at 17 seemed like robbery - they were taking beer tokens off me !!! As you grow up and older you realise what a favour has been done for me.

DB schemes from FS sector are brilliant schemes. A lad who I know has a £27k a year pension built up in the Barclays one and was offered a transfer value of £1.3m !! He didn't pay a penny into it.
 
Phased drawdown definitely seems to be the way to go, unless you absolutely have to get your hands on the whole pot in one go. What I didn't realise until last week is that once you take your 25% tax-free lump sum, you have to make a decision on the rest of your pot - be it going into drawdown or buying an annuity - within 6 months of taking the tax-free lump sum. Not only that, once you take even the smallest amount out tax-free, if you're in a position to invest fresh money into a pension then you're only limited to a maximum of £4000 per year (including tax relief). This is down from £10000 per year previously so the government are closing down certain avenues that opened up with the advent of pension freedoms.

This isn't actually correct. The MPAA of £10,000 currently only comes into play when you start taking income. Taking only tax free cash would not limit you. The £4000 was shelved for a bit but will come in soon i think.
 
Save from 21 to 30, then stop. You will have a bigger pension than a saver who starts at 30 and stop at 70. The miracle of compound interest, Einstein's 'eighth wonder of the world’

Read this article from the Telegraph.

http://www.telegraph.co.uk/finance/...or-10-years-pays-more-than-saving-for-40.html

It illustrates why putting off saving for a pension is completely the wrong thing to do.

Another article making the same point here.

https://uk.scalable.capital/investing-retirement/how-a-10-year-saving-scheme-can-replace-a-pension/

This works to a degree but if you are a professional person with rising income potential then it actually makes more sense to invest the money into ISA initially to get the growth and then put it in the pension when you become a higher rate tax payer so you benefit from the 40% relief rather than 20% when younger.
 
What is a rough amount you should have in your pot at say 30? I'm 2 years off but have a decent pension scheme at work, anything up to 7% they double minus a 1% death in service/fees etc deduction but that is being shelved next April so it will be equivalent of 21% rather than 20, i've paid into it for 7 years now but my salary has pretty much doubled in that time so my payments have as well obviously. I keep reading various articles and they vary hugely tbh so it's hard for a relatively young worker to know what they should be aiming for imo.

That is on the presumption I won't have a mortgage and will be leading a fairly modest lifestyle in retirement!
 
Like I said pay off your mortgage early spend your free money on living life. When/if you reach retirement downsize and live off the state pension plus the profit you make from the house. Or rent it out and live abroad somewhere cheap. Even if you live till 80 the government will nick your money anyhow.

Unless you are well off who wants to save loads of money to the detriment of enjoying yourself a bit.
Is this not based on the assumption that house prices will always go up?
 

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