When will I ever afford to retire.

[A4A4]

How do I get a company 'money purchase scheme' to make a investment return of say 30K a year at 60?

Without putting a ton of cash in each month!

Just a bit annoyed this would be easier if we still had the 'final salary pensions' but you don't get them now if you moved jobs.
No wonder we have uncertainty about final salary pensions because to match these you need to AVC high percentage of your salary into your 'money purchase scheme' to get anything near.

Rant over!

 

[Retroman]

Buy a cheap car and invest into a buy-to-let(s).

 

[pxr5]

Cryptocurrencies - they say, not for me though.

 

[DrEskimo]

Im trying to work out whether I should contribute more to my pension, namely for the tax relief. I think ultimately it's a good idea, as the earlier you start the better, but I don't see much of my gross income as it is...!

Trying to predict my situation in 37yrs time seems a difficult task... Trying to balance my additional income between savings, mortgage, S&S ISA and pension, with the tax implications and potential gains.....Jesus it gets boring quick...

 

[DieselJake]

I'm trying to make it so I own a house and all outgoings are reduced to next to nothing before retiring (solar panels, electric car, etc), that way hopefully I won't need to get 30k a year in a pension as I'm not currently paying into one

 

[Retroman]

If you leave a "final salary" scheme the benefits earned to date are usually preserved and revalued on fairly good terms i.e. a pension at the normal retirement date, based on the years of service to leaving, with the "leaving salary" revalued to the normal retirement date in line with inflation. With "money purchase" schemes employers will often match the employee contribution up to a certain level - a feature to take advantage of. Other than that, people just have to invest wisely and possibly retire later. Some employee SAYE schemes can be rather attractive with little risk and up to 20% discounts on the shares.

 

[A4A4]

I have a final salary pension with 9 years contributions which froze 12 years ago.

But the annoying thing for me is.

This 'final salary' is worth more than my current 'money purchase' I had now for 12 years.
Here I pay more in (AVC 15% company 6%) also now on nearly double the salary I was 12 years ago.

So to match this I would need to contribute 20-40% of my monthly salary to get close to what a equivalent final salary pension would return. Which is pants...and who can afford this?

Boring I know..But anyone in they 40's and younger should be thinking about this if you don't want to just survive on state pension.

 

[Flowrider99]

Fortunately i live in an area where house prices have rocketed so, as long as there isn't a massive drop, my house is more than half my pension.

 

[DieselJake]

I find it really interesting exploring all options.

Average age of death in the UK is 81.6 so in theory if we all want to retire at 65 we need 16 years worth of cash saved (give or take) so we'll all need over £300,000 saved for 20k a year if my math is correct

 

[Retroman]

The average age of the population in W Europe is rising fast. Germany is by far the worst with the highest average age population in the whole World, with the exception of Monaco with is stuffed full of retired millionaires. Germany won't have anybody left working to make Audis soon.

Money purchase pension schemes (aka defined contribution) need interest rates to rise to make the pension income they provide at retirement look more attractive. No people alive today have experienced interest rates this low.

 

[DrEskimo]

I find it really interesting exploring all options.

Average age of death in the UK is 81.6 so in theory if we all want to retire at 65 we need 16 years worth of cash saved (give or take) so we'll all need over £300,000 saved for 20k a year if my math is correct

Yup, but not quite how pensions work...apparently...!
Don't ask me how they work as I have no idea, but there are calculators online that you can use to work out how much your pension will be given your salary and contributions.

https://www.moneyadviceservice.org.uk/en/tools/pension-calculator

A 30yr old earning £30k a year and wanting to have £20k a year to retire with would need to contribute a total of 20% of their income (a combination of both employers and their own contribution). This also gives them a lump sum of £70k (25%) tax free.

For £30k you're looking at around 40% contribution per year...
Obviously this assumes your salary doesn't change in 38 years too...

But i've finally started looking into mine more seriously and turns out mine are defined benefit pensions...so...I guess I'm fortunate in that sense. Not that I know how long I will stay with my employer or how much I will be earning....

I'm like Flowrider...just hoping property stays at the stupidly expensive levels they have been for the last few decades!

 

[RGBARGEE]

We are all a bit stuffed with this Brexit nonsense. Lack of financial security and devaluation of £ helps exports short term but ...


Sent from my iPhone using Tapatalk

 

[45bvtc]

From my experience, already with 8-years of retirement, I'd save whatever I could in several of the best returning 12/24/36 month saving accounts available and keep every penny under my own control. Use tax-free ISA's as much as possible. Always do the maths.

I would not give to any pension scheme, company or otherwise, under someone/anyone else's control: if the company goes belly-up you're screwed.

As for cars; buy something that someone else will want when you've done with it.

Spend some along the way, enjoy it, but save as much as you can afford, and stay in control of your own hard earned £s.

 

[45bvtc]

I have a final salary pension with 9 years contributions which froze 12 years ago.

But the annoying thing for me is.

This 'final salary' is worth more than my current 'money purchase' I had now for 12 years.
Here I pay more in (AVC 15% company 6%) also now on nearly double the salary I was 12 years ago.

So to match this I would need to contribute 20-40% of my monthly salary to get close to what a equivalent final salary pension would return. Which is pants...and who can afford this?

Boring I know..But anyone in they 40's and younger should be thinking about this if you don't want to just survive on state pension.

Maybe just maybe it's worth considering the number of companies currently declaring black holes in their pension funds. Till the age of 55 I trusted company pension schemes but then began seeing with increasing regularity the number of companies on pension 'holidays' i.e., taking employee contributions but not adding them to the pension pot; and then when the company folds the receiver grabs what few £s remained in the pension fund. And on it goes today, take a look at BHS. Or consider a recent report in the Guardian:

Final salary pension deficit of biggest listed firms in UK 'hits £137bn'
"The combined final salary pension deficit of the UK’s 350 largest listed companies more than trebled to reach £137bn in 2016, despite the stock market ending the year on a high, according to a leading consultancy."

Keep control of your own money/savings...

 

[RGBARGEE]

Personally I would like to see the UK embrace the concept of Final salary pension schemes. We were the 6th richest country in the world before all this Brexit nonsense and frankly if we do not look after people with employers pensions, Education and the NHS we will become like America.. extreme affluence or poverty. There is a need for employers and employees to collectively contribute circa 25% towards final salary schemes but in my opinion the savings at the other end for the state are immense. Private sector employers, Wetherspoons, JCP, are I understand miserly in their employer contributions. You don't get a decent pension without someone paying for it. Take a look at what MP's get!

 

[DrEskimo]

Maybe just maybe it's worth considering the number of companies currently declaring black holes in their pension funds. Till the age of 55 I trusted company pension schemes but then began seeing with increasing regularity the number of companies on pension 'holidays' i.e., taking employee contributions but not adding them to the pension pot; and then when the company folds the receiver grabs what few £s remained in the pension fund. And on it goes today, take a look at BHS. Or consider a recent report in the Guardian:

Final salary pension deficit of biggest listed firms in UK 'hits £137bn'
"The combined final salary pension deficit of the UK’s 350 largest listed companies more than trebled to reach £137bn in 2016, despite the stock market ending the year on a high, according to a leading consultancy."

Keep control of your own money/savings...

I'm still working out what to do with my savings. The biggest problem with keeping cash/using savings accounts is that they rarely offer returns larger than inflation (currently around 3%), particularly on large amounts. As such, there is risk with keeping cash as well. Cash ISA accounts are are generally complete waste of time as you rarely get rates >1%, meaning any tax relief is pointless unless you have really large sums.

I'm trying to take advantage of high interest savings accounts (a few 5% ones), but they are severely limited in their contributions and total amount. Typically you cant deposit more than £300 a month and the amount is rarely >£3k. Of course these are generally only offered for 12months and it quickly gets boring moving money around multiple current accounts and savings accounts...!

Which basically leaves the only other option of investments. Two most tax efficient methods are stocks and shares ISA or pensions....Now these are long term solutions. I wouldn't even consider investing for anything shorter than 10-years. The reason pensions are typically so attractive is becuase of the immediate tax relief you gain. This is especially true for high rate tax payers. Now you do pay tax on withdrawal, but remember that 25% is currently tax free, so overall its a tax efficient method of investing.

I make use of high interest savings accounts for short term spending (emergency fund, moving house, eventual car purchase,etc) and the vast majority of my net worth is in property. However when it comes to investing for the long-term I am really tied between investing it into my pension or putting more into my S&S ISA...Being 30, locking my money away till I'm 57 (probably 65 by the time I reach that age..!) doesn't appeal, and I can think of many things I would like to use my money for in say 15/20years time. So I tend to prefer S&S ISA. But as a HRT earner, the tax relief is really appealing too (who doesnt like reducing their tax bill...). It's slightly complicated by the fact that I am currently on a defined benefit scheme (USS), but additional contributions go to an 'investment builder' and I get 1% match from the company too. Free money!

You certainly make a good point about the state of DB pensions, however as mine is university based, I believe it's backed by the government and any benefits accrued so far are 'locked in'. Might be wrong though...

There seems to be extreme pressure to move away from DB and to DC, with rather substantial contributions from the company, however from what I've read the TPS and USS are pretty much as good as it gets pension wise...Will be interesting to see how negations go...

 

[RGBARGEE]

I'm still working out what to do with my savings. The biggest problem with keeping cash/using savings accounts is that they rarely offer returns larger than inflation (currently around 3%), particularly on large amounts. As such, there is risk with keeping cash as well. Cash ISA accounts are are generally complete waste of time as you rarely get rates >1%, meaning any tax relief is pointless unless you have really large sums.

I'm trying to take advantage of high interest savings accounts (a few 5% ones), but they are severely limited in their contributions and total amount. Typically you cant deposit more than £300 a month and the amount is rarely >£3k. Of course these are generally only offered for 12months and it quickly gets boring moving money around multiple current accounts and savings accounts...!

Which basically leaves the only other option of investments. Two most tax efficient methods are stocks and shares ISA or pensions....Now these are long term solutions. I wouldn't even consider investing for anything shorter than 10-years. The reason pensions are typically so attractive is becuase of the immediate tax relief you gain. This is especially true for high rate tax payers. Now you do pay tax on withdrawal, but remember that 25% is currently tax free, so overall its a tax efficient method of investing.

I make use of high interest savings accounts for short term spending (emergency fund, moving house, eventual car purchase,etc) and the vast majority of my net worth is in property. However when it comes to investing for the long-term I am really tied between investing it into my pension or putting more into my S&S ISA...Being 30, locking my money away till I'm 57 (probably 65 by the time I reach that age..!) doesn't appeal, and I can think of many things I would like to use my money for in say 15/20years time. So I tend to prefer S&S ISA. But as a HRT earner, the tax relief is really appealing too (who doesnt like reducing their tax bill...). It's slightly complicated by the fact that I am currently on a defined benefit scheme (USS), but additional contributions go to an 'investment builder' and I get 1% match from the company too. Free money!

You certainly make a good point about the state of DB pensions, however as mine is university based, I believe it's backed by the government and any benefits accrued so far are 'locked in'. Might be wrong though...

There seems to be extreme pressure to move away from DB and to DC, with rather substantial contributions from the company, however from what I've read the TPS and USS are pretty much as good as it gets pension wise...Will be interesting to see how negations go...

I am very familiar with USS. The scheme that ended in 2006/7 was really good for employees but difficult to sustain longer term given market conditions. Further aggravated by the financial crisis in 2008 and now all the Brexit nonsense. Can you move pensions into USS as I did. Happy to have a more detailed chat if you want to pm a number BUT I do not give financial advice just opinion !!

 

[45bvtc]

I'm still working out what to do with my savings. The biggest problem with keeping cash/using savings accounts is that they rarely offer returns larger than inflation (currently around 3%), particularly on large amounts. As such, there is risk with keeping cash as well. Cash ISA accounts are are generally complete waste of time as you rarely get rates >1%, meaning any tax relief is pointless unless you have really large sums.

I'm trying to take advantage of high interest savings accounts (a few 5% ones), but they are severely limited in their contributions and total amount. Typically you cant deposit more than £300 a month and the amount is rarely >£3k. Of course these are generally only offered for 12months and it quickly gets boring moving money around multiple current accounts and savings accounts...!

Which basically leaves the only other option of investments. Two most tax efficient methods are stocks and shares ISA or pensions....Now these are long term solutions. I wouldn't even consider investing for anything shorter than 10-years. The reason pensions are typically so attractive is becuase of the immediate tax relief you gain. This is especially true for high rate tax payers. Now you do pay tax on withdrawal, but remember that 25% is currently tax free, so overall its a tax efficient method of investing.

I make use of high interest savings accounts for short term spending (emergency fund, moving house, eventual car purchase,etc) and the vast majority of my net worth is in property. However when it comes to investing for the long-term I am really tied between investing it into my pension or putting more into my S&S ISA...Being 30, locking my money away till I'm 57 (probably 65 by the time I reach that age..!) doesn't appeal, and I can think of many things I would like to use my money for in say 15/20years time. So I tend to prefer S&S ISA. But as a HRT earner, the tax relief is really appealing too (who doesnt like reducing their tax bill...). It's slightly complicated by the fact that I am currently on a defined benefit scheme (USS), but additional contributions go to an 'investment builder' and I get 1% match from the company too. Free money!

You certainly make a good point about the state of DB pensions, however as mine is university based, I believe it's backed by the government and any benefits accrued so far are 'locked in'. Might be wrong though...

There seems to be extreme pressure to move away from DB and to DC, with rather substantial contributions from the company, however from what I've read the TPS and USS are pretty much as good as it gets pension wise...Will be interesting to see how negations go...

Whatever works for you, GREAT!!! I've seen it from both sides and when it goes wrong it just isn't nice. Seen more than one pension holidays, and several instances where the receiver gobbled up the entire pension reserve writing to members informing them of their prospects; such letters generally stop when the pension pot dries up!

An interesting and very difficult to answer thread. Not for me to 'tell' anyone else 'how to do it' only to be mindful of affording others 'control' of your hard earned £s.

That said, I'll willingly hold onto any excess £s you guys have just sayin'...

No pockets in shrouds...

 

[DrEskimo]

Whatever works for you, GREAT!!! I've seen it from both sides and when it goes wrong it just isn't nice. Seen more than one pension holidays, and several instances where the receiver gobbled up the entire pension reserve writing to members informing them of their prospects; such letters generally stop when the pension pot dries up!

An interesting and very difficult to answer thread. Not for me to 'tell' anyone else 'how to do it' only to be mindful of affording others 'control' of your hard earned £s.

That said, I'll willingly hold onto any excess £s you guys have just sayin'...

No pockets in shrouds...

Indeed! On the whole I would tend to agree with you! I much prefer seeing the cash in my accounts (be it current, savings or investment platform) knowing I've decided where to put it and can take it whenever I want!

But then I see the inherent advantages of pensions...

Pretty sure I change my mind everyday on what I will do!

Doesn't help that pensions are, on the whole, incredibly boring to research...!

 

[DrEskimo]

Can you move pensions into USS as I did

I only have a TPS pension, but was told I can't transfer that, as you can't combine different DB schemes. I think the TPS is generally better than the USS anyway, so not sure I would.

Problem is I have no idea how long I will stay with my current employer. I have a contract till 2020, but after then who knows.

The joys of being an academic researcher....

 

[RGBARGEE]

I only have a TPS pension, but was told I can't transfer that, as you can't combine different DB schemes. I think the TPS is generally better than the USS anyway, so not sure I would.

Problem is I have no idea how long I will stay with my current employer. I have a contract till 2020, but after then who knows.

The joys of being an academic researcher....

You always used to be able to transfer in. I was Prof grade and moved earlier stuff in from NHS, and others. That was in 2001. My understanding is that pensions have to be portable by law. Not sure how transfer values work these days but NHS to USS was pretty much identical. If you are a researcher you should be ideally placed to find out!! Or maybe your specialty is Tetse flies kneecaps


Sent from my iPhone using Tapatalk

 

[DrEskimo]

You always used to be able to transfer in. I was Prof grade and moved earlier stuff in from NHS, and others. That was in 2001. My understanding is that pensions have to be portable by law. Not sure how transfer values work these days but NHS to USS was pretty much identical. If you are a researcher you should be ideally placed to find out!! Or maybe your specialty is Tetse flies kneecaps


Sent from my iPhone using Tapatalk

Not anymore it seems....

"What can I transfer?

You can transfer benefits from most* pension schemes that have been deemed acceptable by HM Revenue & Customs (HMRC) into USS, so long as the funds are uncrystalised (i.e. you have not taken any benefits from the fund already). This includes most schemes offered by an employer as well as personal pensions. Some overseas arrangements can also be transferred if they are registered with HMRC. You should be aware that it is not possible to transfer state pension bene ts to USS.

*In accordance with legislation, members of unfunded public sector schemes, such as the Teachers’ Pension Scheme and the NHS Pension Scheme, may only be able to transfer into the USS Investment Builder if they have less than two years’ service in that scheme."

Ha nope...my research is slightly more interesting than fly kneecaps....only slightly though...

 

[RGBARGEE]

Not anymore it seems....

"What can I transfer?

You can transfer benefits from most* pension schemes that have been deemed acceptable by HM Revenue & Customs (HMRC) into USS, so long as the funds are uncrystalised (i.e. you have not taken any benefits from the fund already). This includes most schemes offered by an employer as well as personal pensions. Some overseas arrangements can also be transferred if they are registered with HMRC. You should be aware that it is not possible to transfer state pension bene ts to USS.

*In accordance with legislation, members of unfunded public sector schemes, such as the Teachers’ Pension Scheme and the NHS Pension Scheme, may only be able to transfer into the USS Investment Builder if they have less than two years’ service in that scheme."

Ha nope...my research is slightly more interesting than fly kneecaps....only slightly though...

Interesting! How come this self serving Government have protected their pensions. When I challenged my MP Liar Fox about the reduction of pensions in USS from RPI to CPI I was told basically 'tough'.. when challenged I asked why MPs pensions were not being reduced I was advised that they were to complicated to change. Thieving ********. Arguably HE is not true Public sector, certainly Research led Unis, and pensioners should not be screwed.

 

[Retroman]

The demise of final salary pensions started 20-years ago when Gordon Brown in 1997 applied one of his "stealth taxes" to pension funds removing their ability to reclaim the dividend tax credit on share investments. Soon after, accounting rule changes meant that pension deficits had to be more prominently shown in balance sheets and we have had a sustained period of low interest rates pushing down gilt yields. All this has meant most final salary schemes became unaffordable and disappeared years ago. It nowt to do with Brexit

 

[RGBARGEE]

The demise of final salary pensions started 20-years ago when Gordon Brown in 1997 applied one of his "stealth taxes" to pension funds removing their ability to reclaim the dividend tax credit on share investments. Soon after, accounting rule changes meant that pension deficits had to be more prominently shown in balance sheets and we have had a sustained period of low interest rates pushing down gilt yields. All this has meant most final salary schemes became unaffordable and disappeared years ago. It nowt to do with Brexit

It is not absolutely accurate to blame Gordon Brown as you have. He was attempting to plug a loophole where private companies were laundering money from their pension schemes to benefit the business rather than employees. The Daily Fail of course reported this as an attach on peoples pensions, whereas the truth as reported by many actuaries is the opposite. It is the same people who will be seeking a hard Brexit to happen and essentially benefit the very rich and screw most others. Check it out independently if you like.
My 2p. I would like the UK to increase contributions ees and ers to ensure upon retirement people can afford to live reasonably and buy Audis if they want to!

 

[joinerman]

I have been self employed for the last 46 years, i started two small pensions about 35 years ago, now time has come to start drawing but i find out they are going to pay peanuts, so i thought i'd take 25% tax free, wrong, under the terms i can only take the full amount & pay tax on 75%.
Wish I had invested / saved my money somewhere i could always access it.
I would never advise anyone self employed to start a pension

 

[RGBARGEE]

I have been self employed for the last 46 years, i started two small pensions about 35 years ago, now time has come to start drawing but i find out they are going to pay peanuts, so i thought i'd take 25% tax free, wrong, under the terms i can only take the full amount & pay tax on 75%.
Wish I had invested / saved my money somewhere i could always access it.
I would never advise anyone self employed to start a pension

Sad to hear this. I was under the impression that you could take 25% of a pension pot tax free. Has it changed. Clearly any draw down on the balance or turning into a pension will accrue tax if your total income exceeds circa £11k a year in the UK.
I still believe the general EU practice of providing decent pensions for the over 60's is the way to go rather than increasing retirement age. BUT it has to be funded and the wealthy should pay their share!

 

[joinerman]

Most companies allow you to take 25% but not all, depends when you started.

 

[A4A4]

My other gripe is some public sector workers moaning about putting in an extra 2%-4% contributions per month for a good pension.
Private sector workers would be happy to contribute these low percentages to get the equivalent pension payout. It costs them a lot more!

 

[RGBARGEE]

My other gripe is some public sector workers moaning about putting in an extra 2%-4% contributions per month for a good pension.
Private sector workers would be happy to contribute these low percentages to get the equivalent pension payout. It costs them a lot more!

I think you need to understand the history behind public sector pensions. History shows that public sector pay has regularly fallen behind the private sector. This is not necessarily the case today. One of the compensation for low pay and no private sector benefits has been a good pension. Google CIPD and Charles Cotton for detailed info.
The big screw for public sector pensioners is stopping RPI uplift. MP’s still get it I believe and private sector bankers et al. It’s easy points to attack as the Daily Fail and Tory politicians regularly do but look at the facts shows a different perspective. Paying more for less is actually what is happening. PS I don’t work in the Public sector!!


Sent from my iPhone using Tapatalk

 

[A4A4]

I think you need to understand the history behind public sector pensions. History shows that public sector pay has regularly fallen behind the private sector. This is not necessarily the case today. One of the compensation for low pay and no private sector benefits has been a good pension. Google CIPD and Charles Cotton for detailed info.
The big screw for public sector pensioners is stopping RPI uplift. MP’s still get it I believe and private sector bankers et al. It’s easy points to attack as the Daily Fail and Tory politicians regularly do but look at the facts shows a different perspective. Paying more for less is actually what is happening. PS I don’t work in the Public sector!!


Sent from my iPhone using Tapatalk

Maybe this was the case in the past. In real time we also have a lot of people in low paid jobs in the private sector which will have no chance of getting similar pension pot to a equivalent public sector worker.

 

[A4A4]

You always used to be able to transfer in. I was Prof grade and moved earlier stuff in from NHS, and others. That was in 2001. My understanding is that pensions have to be portable by law. Not sure how transfer values work these days but NHS to USS was pretty much identical. If you are a researcher you should be ideally placed to find out!! Or maybe your specialty is Tetse flies kneecaps


Sent from my iPhone using Tapatalk

USS reports a £6bn pension deficit so good luck with that one. Unless you are one of the minority 'fat cats'

Think all these 'gold plated pensions' are stuffed.

 

[RGBARGEE]

I really believe that the UK is winning the race to the bottom with pensions which with it will bring all sorts of adverse social consequences. Surely as a nation we should aspire to have decent pensions for our retirement. £6bn deficit isn't good but that is only about 3 WEEKS spending on a pointless Brexit exercise.

 

[DrEskimo]

USS reports a £6bn pension deficit so good luck with that one. Unless you are one of the minority 'fat cats'

Think all these 'gold plated pensions' are stuffed.

The deficit was estimated at £12.3bn in 2014 and increased contributions from both employers and employees reduced this to the £5.3bn (or £6bn, or £17.5bn depending on what set of assumptions you want to apply....) currently.

I am more than happy to up my contribution to reduce the risk if needed. Currently pay in 8% of my salary, but happy to increase it.

As mentioned, DB pensions is one of the only ways for universities to compete with private industry large salaries. If you think the deficit is expensive, imagine they cost of losing the most prominent professors and lecturers teaching at our universities, let alone the research they create and contribute to.

 

[Samuel c5 Q]

Robbing trains, Ronnie Biggs stylie.

 

[SootySport]

Pensions have taken a knock in recent years due to-
Low interest rates,
People are living longer,
Less employees in a pension scheme comparedto the pensioners already drawing a pension,
UK plc not making enough money.

I sympathise with youngsters having to fund their pension scheme with more and more contributions but that's the way it is now.
I my self am lucky that I started in a final salary scheme in 1969 and have just retired with 2/3rds of my salary. .

 

[nickc29]

Interesting that someone mentioned cryptocurrencies. Which ones do you think are the best? Looking at less obvious ones than Bitcoin is probably a good idea.

 

[A4A4]

Pensions have taken a knock in recent years due to-
Low interest rates,
People are living longer,
Less employees in a pension scheme comparedto the pensioners already drawing a pension,
UK plc not making enough money.

I sympathise with youngsters having to fund their pension scheme with more and more contributions but that's the way it is now.
I my self am lucky that I started in a final salary scheme in 1969 and have just retired with 2/3rds of my salary. .

Last of the gold plated final salary pensions - Glad you got it in time. Enjoy !

These may be obsolete soon or at least harder to get them paid out in the future.

 

[Raiden]

Buy a cheap car and invest into a buy-to-let(s).

I'd watched out on buy to lets at the moment now section 24 has come into play. Plus idiot tenants have more rights than landlords so unless your very thick skinned I wouldn't bother. Invest your money elsewhere

 

[SM18]

I’m 26, so long way of retirement unless I win the euromillions soon. I have a buy to let, put it on interest only whilst I get my house tidied up.. and plus my wife been on a teaching course so been short of money recently. I have a nest work place pension and I think in total from me and employer I add 10% of my income. A dickie bird told me to half my age so 26 would be 13 that’s what I should be adding to pension and rise as I age. Don’t really understand pensions that well, does that seem a good plan, I know I’m down 3% but the gov should add some via tax relief.. and not forgetting the buy to let which will be changed to capital repayment when it’s due for renewal.. but it’s getting tedious renting, can’t claim any mortgage interest fees against income now.. feel stuck with it, if I sell there’s 40% capital gains to pay, and I have a fair bit of equity in the property so wouldn’t want to give 40k give or take to the tax man!

Rant over.

Any tips advice on pension would be appreciated.. thanks