Wondering if any drivers, thinks of these things, Seems to be many drivers still doing it after retirement. Is it a wants to, or has to scenario?
From my time in other industries, most seem to think gov, can look after them, and sod any pension, ‘because they get robbed’.
I guess alot now are in auto enrolment pension, Looking at mine, Looks like all i’ll get is a weekly trip to spoons nursing a pint. Or the bottomless tea/coffee they do
The 72 year old guy I work with who still drives sometimes 5 nights a week is ex military (RSM), ex-civil service and ex-electricity board. He’s got pensions we can only dream of going in his bank every month and he still drives lorries but not because he needs the money. Anyway apparently this year is his last but he’s been saying that for the last 5 so we’ll see.
Spend some,save some.
Starting a pension is like stopping smoking:
The sooner you do it, the healthier and wealthier you will be, and its easier to start sooner rather than later.
There is a lot of free advice out there to start with. Paid for expertise has its place, but not at the early stages. Look at the free advice to understand what any expert tells you later.
Try this link
moneyadviceservice.org.uk/e … calculator
And here
moneysavingexpert.com/pensions/
Good site for financial advice on many things. Read there home page to understand how they can offer free unbiased advice.
No need to get too involved in different ways of taking your pension at the moment, if you`re starting out in employment. The rules about drawdown vs annuities will change over time etc. But the sooner you start saving the better.
There is a lot of information out there, and a few scams, but money saved now is worth more later.
The Basic State Pension is currently £137.60 per week. Not many will be able to live well on that.
Workplace schemes are a step in the right direction especially if your employer matches any extra voluntary contributions you make: it`s free money!
Not many drivers managed to get into the dead mans shoes jobs that benefitted from good pensions, and sadly after Gordon Brown’s raid and the general shifting of goal posts (plus outright fraud in some cases) many people in the private sector who were looking forward to comfortable pensions have had varying levels of disappointments.
I could retire but actually enjoy my job so am likely to stay on for a couple of years or so, assuming health licence (social credit score once that comes into play) allow me to continue, don’t need that much to live on because house paid for long ago (could downsize considerably if needs be) no debts of any description and decent savings.
None of us know what the future of our finances will be in reality, DePfeffels latest beau (the actual prime minister) is pushing massive so called green plans, probably under direction of others, which almost the entire political class is signed up to, we of the working deplorable class are all entering unchartered territory re our finances, what we will be allowed to do how we may loive what we may think and say and how and where we may travel or what fuels we may be allowed to buy, assuming we can afford what is coming.
The most fantastic pensions the working classes in the private sector can hope for still may not be enough, so my advice is, yes if you can join a hopefully good safe from plunder company scheme do so, but whatever you do buy the roof over your head and don’t buy anything on credit, this applies mainly to things that depreciate, only borrow to buy things that gain value, whether houses will continue to gain value people like us don’t know.
Cars holidays and boozy nights out cost, only enjoy these things if you can pay outright from money leftover after your normal living expenses and savings are accounted for.
Live within means, we ain’t celebrities we’re working people.
I was signed…
Into Wincanton’s pension scheme automatically when I drove for them in London (a fleet of Fodens and ERFs gives you a time frame). That money snowballed and I eventually moved it into a private pension. I’ve paid in over the decades and cashed it all in when I turned 55. It’s now invested in various things that currently aren’t really earning much because of the low interest rates. I also have a Nest pension that reaps the benefits of employers contributions as well as tax relief.
I’m sure that I could have done better but, I’ve never enjoyed the drops in the market and having to think about it all the time so as long as it’s secure, I’m happy.
Bottom line, yeh, plan for retirement.
I have retired after over 50 years on the road, from 3.5 ton to 44 .ton, My pension, is paid every 4 weeks. If I divide it by 4, it gives me a weekly wage. If I divide by 40, it gives me an Hourly wage. It comes out at £4.63 an hour. Living wage is £8.71 per hour ? HOW?
I pay into a stocks and shares isa, as soon as my mortgage is paid off i will be upping my saving into this to around £900 a month total. I retire in 16 years so with normal growth i should have well over 200k so lets say 200k for arguments sake, i will draw out 5% per year (10k) leave the rest in to grow at hopefully more than 5% this will give me around £200 per week plus my state pension which will be £170 a week so £370 a week to live on with no mortgage to pay. This money is not ■■■■■■■ in the isa and i can withdraw it at any time, i also understand that investments can go down as well as up, but this year it has grown by about 12% if i had put it in bank i would have made about 0.10%
If you have 15 years left until you retire, its not too late to achieve this if you no longer have a mortgage to pay.
This is just my opinion it is not financial advice.
Franglais:
Starting a pension is like stopping smoking:
The sooner you do it, the healthier and wealthier you will be, and its easier to start sooner rather than later.
Pensions are a total rip off to the benefit of the pension providers and the tax man.
Which is why no one with any sense would use the equity in their house to buy a pension annuity because at best the fund you had then becomes taxable when you draw it wiping out any meagre interest it might pay.In addition to a good chance of dying before you get all or even half of your money back. 
Much better to use the cash to pay off a larger mortgage on a better more valuable house and faster and then use the resulting equity to fund retirement.
Bearing in mind that equity release or house downsizing funds aren’t taxable unlike pension payouts.You’re effectively paying tax on your income then paying it again on any growth that your pension might provide when you draw on it.Assuming you even live to see it all paid back.
I’d just like to point out to people that their calculations about how much per week they’ll have to live off after saving and investing wisely look good by today’s standards, but in 20 years time might just be enough to super size their once a month big mac.
WhiteTruckMan:
I’d just like to point out to people that their calculations about how much per week they’ll have to live off after saving and investing wisely look good by today’s standards, but in 20 years time might just be enough to super size their once a month big mac.
Lets just say the isa ONLY achieves 2% growth per year, at my savings amounts from now until 2037 i would have over 200K to play with. I would be very suprised if the markets only achieved 2% growth, i would be very dissapointed if they dont achieve at least 7% growth and if they do this would give me more than 300k, or you could just leave your money sitting in a bank account and watch it DEVALUE at interest rates of 0.1% when inflation is much more than this.
If i was starting out again at say 20 years old, just £100 a month at 5% per year growth would give me a future investment value of £227K. For me, its a no brainer.
Strange things investments, the market is full of snake oil salesmen promising the earth and only occasionally delivering. Hindsight is the best sight; who’d have thought that if as recently as ten years ago if you’d bought £10k of Bitcoin it would today be worth $112 million! Sobering innit?
the maoster:
Strange things investments, the market is full of snake oil salesmen promising the earth and only occasionally delivering. Hindsight is the best sight; who’d have thought that if as recently as ten years ago if you’d bought £10k of Bitcoin it would today be worth $112 million! Sobering innit?
Even last August, bitcoin around 7k now around 35k, i missed the boat on that one
yourhavingalarf:
It’s now invested in various things that currently aren’t really earning much because of the low interest rates.
Where? Even in a conservative 60% equities and 40% bonds fund you’d have seen decent double digit growth just in the last 12 months. The index fund I’m invested in (Vanguard FTSE Global All Cap) went up 36% from this time last year.
shullbit:
I pay into a stocks and shares isa, as soon as my mortgage is paid off i will be upping my saving into this to around £900 a month total. I retire in 16 years so with normal growth i should have well over 200k so lets say 200k for arguments sake, i will draw out 5% per year (10k) leave the rest in to grow at hopefully more than 5% this will give me around £200 per week plus my state pension which will be £170 a week so £370 a week to live on with no mortgage to pay…
You’d have been better sticking it in a SIPP if it was for your retirement. You’d get a free 25% top up from HMRC as it was contributed to out of take home pay. Yes you get taxed on the way out but not all of it and SIPP beats ISA every time.
monevator.com/sipps-vs-isas-bes … n-vehicle/
As for the mortgage, I used to overpay but stopped when I realised that the mortgage interest rate was much lower than the rate of growth that same overpayment would get invested.
Conor:
shullbit:
I pay into a stocks and shares isa, as soon as my mortgage is paid off i will be upping my saving into this to around £900 a month total. I retire in 16 years so with normal growth i should have well over 200k so lets say 200k for arguments sake, i will draw out 5% per year (10k) leave the rest in to grow at hopefully more than 5% this will give me around £200 per week plus my state pension which will be £170 a week so £370 a week to live on with no mortgage to pay…You’d have been better sticking it in a SIPP if it was for your retirement. You’d get a free 25% top up from HMRC as it was contributed to out of take home pay. Yes you get taxed on the way out but not all of it and SIPP beats ISA every time.
monevator.com/sipps-vs-isas-bes … n-vehicle/
As for the mortgage, I used to overpay but stopped when I realised that the mortgage interest rate was much lower than the rate of growth that same overpayment would get invested.
With a SIPP i cant access my money if i need it for an emergency until i am 55, my ISA i can take it all out tommorow, and no tax to pay either, its ISA all the way for me just for the flexibility. Either way is better than just putting it in a bank account though, thats for sure.
Conor:
shullbit:
I pay into a stocks and shares isa, as soon as my mortgage is paid off i will be upping my saving into this to around £900 a month total. I retire in 16 years so with normal growth i should have well over 200k so lets say 200k for arguments sake, i will draw out 5% per year (10k) leave the rest in to grow at hopefully more than 5% this will give me around £200 per week plus my state pension which will be £170 a week so £370 a week to live on with no mortgage to pay…You’d have been better sticking it in a SIPP if it was for your retirement. You’d get a free 25% top up from HMRC as it was contributed to out of take home pay. Yes you get taxed on the way out but not all of it and SIPP beats ISA every time.
monevator.com/sipps-vs-isas-bes … n-vehicle/
As for the mortgage, I used to overpay but stopped when I realised that the mortgage interest rate was much lower than the rate of growth that same overpayment would get invested.
How much interest are you talking which beats paying down the compound interest of a mortgage combined with the unbeatable investment of property.
While ultimately it’s got nothing to do with the investment value of a pension. It’s how much pension income the money will buy you at the end.In which case a pension isn’t much use if you die before it’s paid out which is what the provider is betting on.In addition to the tax that you will be hit for on the income.
By your logic the best retirement plan would be to sell the house then use the cash to buy an annuity and then rent.Good luck with that when even buying an annuity with equity release is a really dumb idea.
Pensions are a scam if they weren’t they’d be economically unviable for the provider.
Let alone when income tax is taken out of the pension payments when they are added to your state pension income.Assuming that you live long enough to get back even half of the pension fund.
Carryfast:
How much interest are you talking which beats paying down the compound interest of a mortgage combined with the unbeatable investment of property.While ultimately it’s got nothing to do with the investment value of a pension. It’s how much pension income the money will buy you at the end.In which case a pension isn’t much use if you die before it’s paid out which is what the provider is betting on.In addition to the tax that you will be hit for on the income.
By your logic the best retirement plan would be to sell the house then use the cash to buy an annuity and then rent.Good luck with that when even buying an annuity with equity release is a really dumb idea.
Pensions are a scam if they weren’t they’d be economically unviable for the provider.
Let alone when income tax is taken out of the pension payments when they are added to your state pension income.Assuming that you live long enough to get back even half of the pension fund.
Martin Lewis had better watch out!
Carryfast:
How much interest are you talking which beats paying down the compound interest of a mortgage combined with the unbeatable investment of property.
Even a difference of just 0.1% better return on investing the money and the mortgage interest rate makes it better using your money you were going to overpay with to invest.
Lets illustrate…
Mortgage at 2%, outstanding £100,000, time left 25 years.
Using this mortgage overpayment calculator: moneysavingexpert.com/mortg … alculator/
A one off lump sum payment of £100 will reduce the amount you repay on your mortgage over the 25 years will save you a total of £65 in interest. You’ve therefore gained £65 over 25 years.
For the next bit we’ll use a simple compound interest calculator: thecalculatorsite.com/finan … ulator.php
If you invest £100 as a one off into something that gives you a 2.1% return, just 0.1% more than the mortgage rate, over the same 25 year period that £100 will be worth £168.13, you’re £3 better off.
However lets look at it again with more realistic real world figures. The long term average growth for the stock market is 7%. So plumbing that into our £100 invested over 25 years at 7% that £100 now becomes worth £542.74, you’ve gained £442.74 which is £377 more than the interest you’d saved if you’d used the £100 to make a single overpayment on your mortgage.
So lets look at another scenario where we make regular overpayments of £100 a month on our £100k 25 year @2% mortgage.
In this scenario we save £13973 in interest and we repay the mortgage in 21 years and 2 months, 4 years and 10 months early.
However if we invest the £100 a month instead not even the full 25 year initial term but the 21 years and 2 months above when we’d become mortgage free overpaying, again at the long term 7% average return the amount of our pot would be worth £58,404 leaving us £44,431 better off than overpaying the mortgage.
And that’s your money working the hardest for you. However for most people it’s a hard thing to do because there’s nothing like the security of owning your own home mortgage free so despite it being something that is going to leave them £10,000s or even £100,000s worse off than they could have been most will choose overpaying the mortgage over investing.
By your logic the best retirement plan would be to sell the house then use the cash to buy an annuity and then rent.Good luck with that when even buying an annuity with equity release is a really dumb idea.
No the best retirement plan isn’t necessarily that. If you go into care though if you were renting you’d be much better off than being a home owner as when renting the council cover the cost whereas if you owned a home they’d force you to sell it to pay for that care. Who said anything about buying an annuity? Sod that. Drawdown leaving the pot invested to continue to grow.
Pensions are a scam if they weren’t they’d be economically unviable for the provider.
Let alone when income tax is taken out of the pension payments when they are added to your state pension income.Assuming that you live long enough to get back even half of the pension fund.
You only pay tax on the amount that, state pension included, takes you over the personal allowance so currently if you’re on full state pension and take only £3,161 a year out of your pension you’ll pay no tax. If you use drawdown instead of buying an annuity when you die anything left in your pension pot goes to whoever you choose to leave your money to in your will.
shullbit:
WhiteTruckMan:
I’d just like to point out to people that their calculations about how much per week they’ll have to live off after saving and investing wisely look good by today’s standards, but in 20 years time might just be enough to super size their once a month big mac.Lets just say the isa ONLY achieves 2% growth per year, at my savings amounts from now until 2037 i would have over 200K to play with. I would be very suprised if the markets only achieved 2% growth, i would be very dissapointed if they dont achieve at least 7% growth and if they do this would give me more than 300k, or you could just leave your money sitting in a bank account and watch it DEVALUE at interest rates of 0.1% when inflation is much more than this.
If i was starting out again at say 20 years old, just £100 a month at 5% per year growth would give me a future investment value of £227K. For me, its a no brainer.
Tell us more how £100 pm makes 227k.At £1,200 pa that would take around 200 years not 20 even with the 5% compound.
Oh and even if it did a 227k annuity would buy around 10k pa pension all subject to around 20% income tax after the state pension is added to it.Which means you’ve got to live until you’re around 90 + just to break even.
You think that beats paying a 100 pm more expensive mortgage to buy a more expensive house which you can then use to equity release with no tax burden and for the full amount while you’re still around to spend it.