Interesting new rules on pension auto enrolement coming out

MatBin said:
Can't recall exactly when but it was caused by feminists demanding equal status for men and women and they hoped it would mean both retired at 63 instead it was raised to 65 and then raised again for both depending on when you were born and of course again since then. Bear in mind that many women had started their working lives expecting to retire at 60 and now for those women it has been raised 6 or 7 years whereas for the men only 1 or 2 years, is that fair?
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That’s equality for you!



The younger generation have it worse as they are unlikely to be in a final salary scheme and will be working to 70+
 
A few years ago I read an interesting article by American airlines, upshot was the longer you worked the earlier you died, so I can't see many of the younger generation lasting as long as current OAP or perhaps not as long as the people about to retire at age 65/66. Suppose that's one way of limiting the payout, work till 70 and drop dead at 80 if you are lucky. Mind it used to be worked out at 65 and die at 70, it's the war generation that screwed that up, tough old sods. My dad's 88 and still going strong despite telling us when he retired at 65 he would only last 5 years.
 
Yes, when the pension age was set at 65 the reason was that life expectancy was 67!

The current retirees are the last of the ones who had lump sums and final salary pensions. Many coming Into retirement in the next 20 years will definitely not have it as good but that is a,so because any have spent now with no thought for the future. No pensions and hoping the state will bail them out. Many won’t be able to retire due to their lack of finances.


I’ve not decided when I will retire. Enjoy my job and will look at the numbers in a few years and factor in how much support my boys will need financially so I can work out when the magic date will be!
 
john.margetts said:
1) bitcoin is going to seriously crash soon as it has no underlying value to support the price.

2) if any pension provider goes bust, the pension fund is taken over by the pension industry and you lose little if anything. Happened to my Golden Wonder pension which is currently doing quite well.
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Bitcoin may or may not crash like all other investments. Thats why you diversify your portfolio. Never place all eggs in one basket.
 
Buck said:
Yes, when the pension age was set at 65 the reason was that life expectancy was 67!

The current retirees are the last of the ones who had lump sums and final salary pensions. Many coming Into retirement in the next 20 years will definitely not have it as good but that is a,so because any have spent now with no thought for the future. No pensions and hoping the state will bail them out. Many won’t be able to retire due to their lack of finances.


I’ve not decided when I will retire. Enjoy my job and will look at the numbers in a few years and factor in how much support my boys will need financially so I can work out when the magic date will be!
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I too am undecided on when to retire. I have been with the same employer for over 38yrs but had to start a new job in a different location 4yrs ago due to the other place closing down. Had I still been in my old place i' probably have retired at 58 ( just under 3yrs time) but the new job is much more enjoyable and a lot easier. I like to call the place a retirement home, it is so easy going. As i work early and late shifts, I get a lot of spare time during the week too. I'm in no rush to retire at the moment, makes more sense to carry on working and earn extra money whilst I can and save additional money and invest it and earn tax free interest on it ready to supplement my pension lump sum and monthly pension when I do finally retire. Then I can pass on some money to my two sons whilst I'm still alive and watch them enjoy it instead of them having to wait for their inheritance after the wife and I peg it.
 
LongLensPhotography said:
I'd rather buy some bitcoin and something else and yet something else (a mixed bag of investments) for that money rather than rely on this. That's what the pension companies do. If they go bust you will get nothing, so you may as well take the risk yourself.
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That's exactly what I do (except not Bitcoin, obvs).

After fees and so forth I'm currently running at a shade over 10% per annum return. Curiously, most pension firms with their PhDs in investing aren't.
 
Try to have a look at flexible pensions and drawdown options before you buy an annuity.... and if that’s not for you never take the annuity the provider offers without shopping around and declaring any health factors that may get you a better rate...[emoji106]
 
MatBin said:
Is that on top of the state pension, currently the new pension might provide apprx £7500 pa assuming you have worked and paid NI contributions for sufficient years (contracted out years will affect this of course) to qualify for the full pension. Many people approaching state pensionable age will not qualify for a full pension. I worked from age 16 I'm 63 and despite never being out of work I dont qualify for a full pension (yet) as I havent worked enough years - I had 6 or so years contracted out.
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I checked mine, I'm 48 and have 31 qualifying years. It says I have now qualified for the full pension, though I need to be 67 before I can actually claim it.
 
onomatopoeia said:
I checked mine, I'm 48 and have 31 qualifying years. It says I have now qualified for the full pension, though I need to be 67 before I can actually claim it.
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I am nigh on 64, as at 2016 I was one year short of qualifying for the full state pension...... sorted in 2017..........I have made 47 qualifying years contributions. I am eligible to get it at 65.5 years ~ c'est la vie
 
JonathanRyan said:
That's exactly what I do (except not Bitcoin, obvs).

After fees and so forth I'm currently running at a shade over 10% per annum return. Curiously, most pension firms with their PhDs in investing aren't.
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Made 45% on my pension pot in the last 12 months, out of sheer luck of picking high risk funds haha.

Have transferred the growth out into lower risk funds to bank it though.
 
KitsuneAndy said:
Made 45% on my pension pot in the last 12 months, out of sheer luck of picking high risk funds haha.

Have transferred the growth out into lower risk funds to bank it though.
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So the initial investment is still in the high risk fund?
Years ago my pension fund (with L&G - so supposedly well managed medium risk) doubled in 10 years, the following 10 years it halved so left me where I had started after 20 years, be careful.

Matt
 
MatBin said:
So the initial investment is still in the high risk fund?
Years ago my pension fund (with L&G - so supposedly well managed medium risk) doubled in 10 years, the following 10 years it halved so left me where I had started after 20 years, be careful.

Matt
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Yeah there's an element still in there, I have enough years to retirement that if it crashes, it's likely to come back up anyway and I track the funds so I can switch out if I see it start to drop. Obviously not without risk, but I *think* i have it balanced across several markets well enough that unless there was a global crash, I'd probably be safe.
 
KitsuneAndy said:
Made 45% on my pension pot in the last 12 months, out of sheer luck of picking high risk funds haha.

Have transferred the growth out into lower risk funds to bank it though.
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Congratulations. Let's see who has more money in 10 years' time ;)
 
KitsuneAndy said:
haha, not me, 45% growth on not very much is still not very much;)
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That's exactly it. I have a couple of fun money accounts that trade on peer to peer and they do surprisingly well. But those are amounts I can afford to lose and chalk it all up as a nice little hobby.

Pension is invested in pretty solid stuff.
 
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