In reality how many workers have disposable income to put towards a pension ?
ROG:
In reality how many workers have disposable income to put towards a pension ?
That’s why the government is forcing employees into it, and another reason why the sham S/E driver needs to be getting more than the extra £1 an hour that agencies give them.
Labour will probably just spend all the pensions again and leave us with FA.
unless you can afford to put £500 a month in to a pension for 40 yrs don’t bother!
the only pensions that are any good are government schemes, i.e nurses,council workers,civil service.
next best company schemes,i.e. British gas,BT, or any blue chip companies.
Think about this… all the big pension companies have big plush offices in the city,no expensive spared,stainless steel and glass skyscrapers,executives on £1,000,000 per yr + expensives…and all paid for by YOU!
As a former psychiatric nurse, the first thing I did when I joined the NHS was enrolling in the superannuation scheme, ie final salary. I paid into the scheme for 13 years. On current projections when I retire at 60 the lump sum will be around £20,000 and £5,000 pa. Private pension schemes aren’t worth the paper they are written on.
After being made redundant from Rentokil/Initial I took my pension money that they re-paid me and started a private pension with HSBC. After letting it run for two years, I was bored one afternoon and decided to do a forensic examination of the policy documents.
If I’d let it run it’s course of 25 years I would have paid fees of £10,000 just for the privilege of a fund manager administrating the pension. 
I’d just save money each month and stash it under a mattress!! 
Financial type things which involve lots of numbers tends to make most folks brain hurt, so they nod their head to anything said by anyone whose eyes aren’t too close together.
Pensions are for fools, even the smug buggers in the civil service are going to wonder where it all went in a few years time.
I pay into a sipp.that way, I get to choose where my pension is invested,instead of some ponce insurance company.
I won`t be buying no annuity either.
Ill be taking income drawdown...you still get the 25% tax free lump,but leave the rest invested to provide income.oh..and you can leave investments to your family in your will...you cant an annuity.
as for buying property…why bother?just put your money in a property investment fund and get similar returns for sittin on yer crack 
Chas:
…Pensions are for fools, even the smug buggers in the civil service are going to wonder where it all went in a few years time.
Friend retires next year at 60 from GCHQ in Cheltenham after doing 25years. As well as a lump sum of £25k he will be getting 25/40ths of his final salary as an index-linked pension, so about £20k a year and he’s already worked out that he only has to live for 6 years to get back all of what he has paid in over the years.
Even my wife, as a former local government officer, will be getting about £16k a year pension, again index-linked.
No private pension will ever be able to match up to these sort of figures, that’s why final salary pensions are becoming a thing of the past, except for those who are supported by our taxes.
If I had my time over again…
I would rather live a good life now and live in poverty if I get to 60 rather than living an average life now and an average life then.
Live fast, die young.
The main point about retiring is not to have all your eggs in one basket.
You say you have property and good tenants at the moment…having bad tenants who don’t pay and trash the place would put a dent in any profits for that year, likewise HS2, windfarm, council incinerator etc could wipe the profits in the property out in short order.
The main point with the new pension enrolment is that the company at least match the money you put in, and many companies pay double. Now call me old fashioned but FREE money is always a good deal. Before the doom mongers start, yes it depends on the stock market so its not guaranteed, but as they say EVERY LITTLE HELPS.
And finally could you live on £140 per week, because I couldn’t. I could probably survive, but not live.
Here’s a good pension plan for the young 'uns :
Take out a personal loan for £5k, use this as the deposit to buy a £100k house. Let the house for £550pm. Pay back the £5k from your wages. Wait 25yrs.
Et Voila’.
Does anyone here have even a basic understanding of economics?
Here’s a good pension plan for the old 'uns :
That house you’ve worked hard all your life to pay the mortgage interest on, well when you’re finally done paying it, give the house to your kids FOC.
Get your Gov’m’n’t to pay your kids £550pm to rent the house so you can live in it. Of course, this relies on you trusting your kids to hand over the £550pm so you can enjoy your retirement
Anyone here understand fractional reserve banking?
Chas:
Here’s a good pension plan for the young 'uns :Take out a personal loan for £5k, use this as the deposit to buy a £100k house. Let the house for £550pm. Pay back the £5k from your wages. Wait 25yrs.
Et Voila’.
Does anyone here have even a basic understanding of economics?
Are you Gordon Brown by any chance…thats what got us in this mess.
And I can only do easy sums…if that helps
One idea would be to let one of the houses and re-mortgage the equity on one or both of them.
Use this cash as a deposit to purchase further property/s on an interest only mortgage, just make sure you have sufficient rental income to cover any future interest rate rises. Make sure you do your homework and know the market in the area you buy, avoid using agents to manage your properties and go for freehold properties.
I bought my first property 10 years ago and haven’t bought any for a while now so I don’t know the current situation mortgage wise, the hardest part is finding good tenants the actual costs apart from the mortgage payments are quite minimal for example £50 for a landlord gas certificate £200 or so for buildings insurance and £50 for an E.P.C certificate, manage the properties yourself and do a self assessment tax return, fairly straightforward and a good long term investment.
Depending on interest rates which will continue to remain fairly low for the foreseeable future and if you invest wisely you should do well, remember the debt on the properties never increases (unless you borrow against the equity) but the rent will increase year on year which should give you an ever increasing return.
There was once a capital repayment buy to let mortgage, you are now 30 years old 3 houses on this type of product and paid for by the time you are 55! this is just one scenario.
mike68:
remember the debt on the properties never increases (unless you borrow against the equity)The debt as a number may not increase but as a percentage of the valuation it may, if your house goes down in value, as many found out to their cost when they tried to remortgage after the last housing bubble burst a few years ago.
This could lead to you being unable to remortgage at all, if you started with an LTV of 80% and the value of your house fell. The better mortgage rates are all at the lower loan to value ratios, moral of the story is do not overextend yourself.
Chas:
Here’s a good pension plan for the young 'uns :Take out a personal loan for £5k, use this as the deposit to buy a £100k house. Let the house for £550pm. Pay back the £5k from your wages. Wait 25yrs.
Et Voila’.
Does anyone here have even a basic understanding of economics?
Good luck getting a buy-to-let mortgage with only 5% deposit !
Terry T:
Good luck getting a buy-to-let mortgage with only 5% deposit !
Why bother telling them it’s a BTL?
All the banks are interested in is the mortgage being paid & on time.
Can I just say.
This is a brilliant thread with excellent discussion, and not a troll or a knob in sight.
Well done TN.
Anyway, on to topic. My work have auto enrolled me @ £25pw and they’re matching it. Tbh I’m thinking of pulling out of it as the other half has been diagnosed with a life limiting illness and the house is already paid off. So I think I’ll just sell it later on. Stick the money in a deep hole and claim what I’ve paid for years… Because this has made me think about life.
Live for now, not then… Unless you like steak for tea every night.