Guest Winners and Losers Posted May 26, 2006 Share Posted May 26, 2006 I am currently contributing 5% of my salary to a UK pension and my employer is contributing 5%. It is unlikely that I will be staying in the UK long term (maybe another 4 years - max!). Is it worth it to keep paying in or would my money be better off spent else where (like on shoes )? Quote Link to comment Share on other sites More sharing options...
penbat1 Posted May 26, 2006 Share Posted May 26, 2006 I am currently contributing 5% of my salary to a UK pension and my employer is contributing 5%. It is unlikely that I will be staying in the UK long term (maybe another 4 years - max!). Is it worth it to keep paying in or would my money be better off spent else where (like on shoes )? Certainly yes to get your employers contribution. You can claim your pension when living abroad. Quote Link to comment Share on other sites More sharing options...
contrarian Posted May 28, 2006 Share Posted May 28, 2006 (edited) Is it worth it to keep paying in or would my money be better off spent else where (like on shoes)? Shoes are a good idea. If you spend money on a pension you will be keeping humungously well paid fund managers in hand-stitched bespoke shoes at £2000 a pop. And Ferraris. And BTL flats. Can that be an efficient way to invest? If you have £2000 a year for either a pension or a pair of decent shoes, you might as well wear the hand-stitched bespoke shoes yourself. It is better for your feet. (That's the philosophy I live by, anyway). Edited May 28, 2006 by contrarian Quote Link to comment Share on other sites More sharing options...
Butthead Posted May 28, 2006 Share Posted May 28, 2006 Shoes are a good idea. If you spend money on a pension you will be keeping humungously well paid fund managers in hand-stitched bespoke shoes at £2000 a pop. And Ferraris. And BTL flats. Can that be an efficient way to invest? If you have £2000 a year for either a pension or a pair of decent shoes, you might as well wear the hand-stitched bespoke shoes yourself. It is better for your feet. (That's the philosophy I live by, anyway). What absolute rubbish! Tax free contributions Tax free growth 25% Tax free fund at retirement Not to mention the fact that if well managed your fund from your contributions (and those of your company) should have grown substantially by the time you retire. And as stated you can draw it wherever you end up living. It is most certainly worth it. Quote Link to comment Share on other sites More sharing options...
oracle Posted May 28, 2006 Share Posted May 28, 2006 if you are getting contributions from your emloyer,then it's worthwhile!! these prbably won't last....make the most of them while you can!!! Quote Link to comment Share on other sites More sharing options...
New Darker Law Posted May 28, 2006 Share Posted May 28, 2006 I am currently contributing 5% of my salary to a UK pension and my employer is contributing 5%. It is unlikely that I will be staying in the UK long term (maybe another 4 years - max!). Is it worth it to keep paying in or would my money be better off spent else where (like on shoes )? I would say it was worth it for the employer contribution. 100% growth for little risk. I assume you are returning to Australia. With the new A-Day rules it is still possible to transfer the fund to a scheme in your new country. The receiving scheme need to apply for a some sort of letter from HMRC (can't remember the name exactly) which should ensure the fund will be transferred tax free. Shoes are over-rated as a pension investment! NDL Quote Link to comment Share on other sites More sharing options...
Golden Shower Posted May 29, 2006 Share Posted May 29, 2006 Certainly yes to get your employers contribution. You can claim your pension when living abroad. Good point and, WAL, remember you are getting free money off your employer too and the UK government (I assume you are eligable for the tax break). Just take an active interest where they put your moeny (do you have many fund to choose from?) and in your old age you could have a nice little bonus when you change it into AUD. Mmm, the VB is on WAL! Sweet, loving VB mmmmmm. Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted May 29, 2006 Share Posted May 29, 2006 Good point and, WAL, remember you are getting free money off your employer too and the UK government (I assume you are eligable for the tax break). Just take an active interest where they put your moeny (do you have many fund to choose from?) and in your old age you could have a nice little bonus when you change it into AUD. Mmm, the VB is on WAL! Sweet, loving VB mmmmmm. More of a 'New' drinker myself. Thanks for the advice. I wasn't serious about the shoes ffs. I have spread it over some medium risk and some high risk (like emerging markets) Not really sure if that is a good thing to do, but thought to myself, what the heck, may as well go high risk! I would say it was worth it for the employer contribution. 100% growth for little risk. I assume you are returning to Australia. With the new A-Day rules it is still possible to transfer the fund to a scheme in your new country. The receiving scheme need to apply for a some sort of letter from HMRC (can't remember the name exactly) which should ensure the fund will be transferred tax free. Shoes are over-rated as a pension investment! NDL Cheers NDL. That is what I was worried about, transferring to Oz and tax. I already have a decent sum in another UK pension (totally contributed by employer ), from before. Just trying to cobble it all together so that it doesn't end up whittled away!! I think I can claim the UK state pension in Oz as well, but it will stay at the rate from when I start claiming. I think. Oh well, only another 30 odd years to go until retirement - if I make it! Quote Link to comment Share on other sites More sharing options...
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