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Cancelling Pension Contributions Today...


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The need for a decent pension is set by the costs of living when retired. The largest cost is housing and there seem to be a lot of pensioners who still have mortgages and that only seems to be increasing. I think therefore that the greatest investment for old age is to have zero housing costs - mortgage paid off (or on HB I suppose). With no housing costs living well is pretty easy with even a small income (as long as you or someone who gives a shit about you can cook).

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The need for a decent pension is set by the costs of living when retired. The largest cost is housing and there seem to be a lot of pensioners who still have mortgages and that only seems to be increasing. I think therefore that the greatest investment for old age is to have zero housing costs - mortgage paid off (or on HB I suppose). With no housing costs living well is pretty easy with even a small income (as long as you or someone who gives a shit about you can cook).

70k to build a decent sized home.

Government gets more than half that back in taxes so cost to the state is sub 35k

10 year bonds at 2.5% to finance the 35k homes is 17 pounds a week!

Charge 20 quid pw & you are quid in

Instead we have typical rents in most the areas of TEN times that

Government should build 5m such homes

But with so many btl MPs its no surprise the state doesn't want to lower our biggest cost

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I wish I had the guts to do this. I'm still a bit brainwashed with the talk of employer's contributions (matching mine) and tax breaks.

What I don't like is the way they take 1% every year, not just from the extra paid in but the whole lot. Doesn't sound like much but compounded every year.....can't be good.

Ask your employer for the extra cash and invest it yourself....he's paying it anyway. Explain to him you dont think in X years there will be any pension schemes paying out and you are not prepared to loose everything.

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Ask your employer for the extra cash and invest it yourself....he's paying it anyway. Explain to him you dont think in X years there will be any pension schemes paying out and you are not prepared to loose everything.

Well, I suppose it's worth a try... :rolleyes:

Much easier to just say no though and it saves them money. I think it would be hard to argue it is a contractual obligation either as most pensions are a benefit so there is more room for them to change it if they want to. I am only basing this on going through a few rounds of TUPE buyouts where it was made clear the pension contributions were not a core part of our permanent contracts.

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Ask your employer for the extra cash and invest it yourself....he's paying it anyway.

Not an option I'm afraid, the company will pay into the specified group plan only.

My instinct is to opt out, although I'm wary of losing any legal protection that a pension has (e.g. immunity from bankruptcy, not counted as savings for benefit applications).

I don't like the thought of people skimming that 1% every year and I like the idea of having a pot of money that I control. I think I need to do some sums over the Christmas break to get a better idea of where I will stand.

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The idea that any pension savings will be off set against your future state pension looks very likly to me. I own no gold but there is a real case for putting your pension money into gold and then just cashing it in every month or so when you are retired.

100% state pension + a little "extra" from the gold.

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forget investments - just stockpile stuff and stop worrying about inflation or investment risk.

And start worrying about fire, flood and theft instead...

The reason I don't have one is because over a lifetime at work I find it hard to believe that the pot of money I would have saved would not be plundered before I was able to get to it.

...

Take the money you would have contributed and put it on the lottery, invest it, buy gold, put it under your mattress, just do it yourself. That way if it does go tits up you will have no one to blame except yourself.

Are you really suggesting that cash under the mattress or lottery tickets is a better way to save for retirement than a pension? That paints a worrying picture of expected retirement incomes in a few years time.

pensions are generally a bad idea because for most people when you retire you will get

state pension + pension credits (what they think you need as a base minimium to live)

so any small pension you get will just reduce the pension credit

Only if pension credits exist in their current form when you come to retire. George Osbourne is looking to do away with it very soon isn't he, and make State Pensions flat rate?

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Only if pension credits exist in their current form when you come to retire. George Osbourne is looking to do away with it very soon isn't he, and make State Pensions flat rate?

The PM has talked about a flat rate pension in the region of £140 a week, with no pensions credits.

The credits system was another of Balls' bright ideas presented by Gordon. Make something a tax credit and you can say that the tax burden is less, and avoid increasing the level of benefits paid.

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The idea that any pension savings will be off set against your future state pension looks very likly to me. I own no gold but there is a real case for putting your pension money into gold and then just cashing it in every month or so when you are retired.

100% state pension + a little "extra" from the gold.

That wouldn't work if it was allocated gold you sold and the proceeds came into your bank account. It would have to be coins sold for cash. You would need to buy them in advance for cash or via a bank account that you close down well before retirement.

Of course there is risk of theft but if the money is in the system it's certain to be stolen and pay your pension credit/benefits on behalf of the government until what you have saved is exhausted or a small pension perpetually removes you from pension credit/benefits.

Pension planning has taken on a whole new form when saving is penalised and your hard earned is stolen, with governments that embrace moral hazard.

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That wouldn't work if it was allocated gold you sold and the proceeds came into your bank account. It would have to be coins sold for cash. You would need to buy them in advance for cash or via a bank account that you close down well before retirement.

Of course there is risk of theft but if the money is in the system it's certain to be stolen and pay your pension credit/benefits on behalf of the government until what you have saved is exhausted or a small pension perpetually removes you from pension credit/benefits.

Pension planning has taken on a whole new form when saving is penalised and your hard earned is stolen, with governments that embrace moral hazard.

Thanks, thats what I was thinking. I guess you dont even need toturn it into gold, just find a reason why it has gone and take it out over the 2y before (gambling, drugs, women etc are all legit ways you could have spunked the cash)

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I pay the minimum amount that my employer will match. This goes straight into Black Rock Gold. They won't do Central Fund Of Canada unfortunately. The benefit of this is that you can switch funds without charge, so anyone good at "trend following" can go down that route. Without the employer contributions, I would probably end the contributions.

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I start a new job soon and the pension scheme is a standard defined contribution job and they will match the first 7.5% I put in. I'll go with it - I'm not confident I can beat the 7.5% + tax relief through my own investment. Is there really a smarter option, or is this just the usual HPC crowd pessimism on absolutely everything?

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Good luck to anyone who has a private pension that they pay in to. Personally I have good insurances which would leave my family well off if I was to go toes up.

The reason I don't have one is because over a lifetime at work I find it hard to believe that the pot of money I would have saved would not be plundered before I was able to get to it. Before anyone mentions tax relief and employer contributions I would say that they aren't worth f**k all if there is no money left when you come to retire.

Take the money you would have contributed and put it on the lottery, invest it, buy gold, put it under your mattress, just do it yourself. That way if it does go tits up you will have no one to blame except yourself. I invest in highly speculative stocks, I am just ahead at the moment but have been a long way down and hopefully one day will be will be a long way up.

"One day Rodney......."

+1

My aunt got done over by Equitable Life.

I get 10% of my salary paid by my employer and don't contribute any extra, I'd rather have the cash and do what I want with it now, whether it's paying off my mortgage, buying gold, filling up my ISAs. Anything better than some thieving "fund manager" feckin me over

Edited by SEW247
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I start a new job soon and the pension scheme is a standard defined contribution job and they will match the first 7.5% I put in. I'll go with it - I'm not confident I can beat the 7.5% + tax relief through my own investment. Is there really a smarter option, or is this just the usual HPC crowd pessimism on absolutely everything?

Quite.

Personally, if it's the choice between £60/£80 in my pocket or £200 in my pension, it's an easy choice.

Unless you have an insight into horses or lottery numbers that I don't, I can't see what you can do with that £60/£80 to beat the pension, despite any charges etc levied on your fund.

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I have just cancelled my pension contributions.

It is a backdoor tax there to benefit the rich.

I will invest in the bookmakers instead...it is a fairer gamble and more pleasurable.

At the very least you can buy a basket of the main FTSE shares and you know you will get twice as much in your pocket when you retire. That's what those comissions will do to your savings, in the best of cases.

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I'm honest enough to admit that i would spend my pension before I got to pension age in a fit of Ferrari itis so keeping it out my hands till I get older seems sensible to me. I don't however understand why (if you were to die for instance ) the money doesn't revert to your estate instead disappearing off to the invisible man.

Actually where does it go?

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Download a copy of The Alpha Strategy. The strategy is rather simple: forget investments - just stockpile stuff and stop worrying about inflation or investment risk.

The rich investment prizes dangling before you—enticing

you to work hard and save and invest with our great financial institutions—are bait.

:D

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  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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