Out I curiosity, do they provide you with a pension forecast, ie how much you actually get per year when you retire? I’d be curious what they are saying, if some on wanted to share contribution and forecast numbers.
albion:
Out I curiosity, do they provide you with a pension forecast, ie how much you actually get per year when you retire? I’d be curious what they are saying, if some on wanted to share contribution and forecast numbers.
It’s all but impossible to give such forecast figures, as buying an annuity (to give you an income every year until you die) is just one way of using your pension “pot” when the day eventually arrives (and annuity rates are not exactly set in stone even in the short term - GOK what they will be in 5,10,15 or 20+ years time). The “pot” figure is also impossible to predict 20+ years in the future, as no-one has any way of knowing how investment returns are likely to perform in the intervening years.
Put as much as you can into your pension and the younger you are the better . £50 a week at the age of 30 is much better than £50 a week when you are 50 . Oh and pray you make it to retirement age lol
Roymondo:
albion:
Out I curiosity, do they provide you with a pension forecast, ie how much you actually get per year when you retire? I’d be curious what they are saying, if some on wanted to share contribution and forecast numbers.It’s all but impossible to give such forecast figures, as buying an annuity (to give you an income every year until you die) is just one way of using your pension “pot” when the day eventually arrives (and annuity rates are not exactly set in stone even in the short term - GOK what they will be in 5,10,15 or 20+ years time). The “pot” figure is also impossible to predict 20+ years in the future, as no-one has any way of knowing how investment returns are likely to perform in the intervening years.
I wasn’t looking for a definite! I was tragically dull in my youth and started saving 25 quid a month at the age of 25. Theres always been a best and worst case forecast, I get mne in an annual review. I might be wrong, but I’m fairly sure you can crunch the numbers into some websites and they’ll give you a guesstimate.
Edit: quick search, moneyserviceadvice.org combines state pension and any other pensions to come up with a figure. Didnt wade through it myself but I’m sure it will have plenty of caveats! 
albion:
Roymondo:
albion:
Out I curiosity, do they provide you with a pension forecast, ie how much you actually get per year when you retire? I’d be curious what they are saying, if some on wanted to share contribution and forecast numbers.It’s all but impossible to give such forecast figures, as buying an annuity (to give you an income every year until you die) is just one way of using your pension “pot” when the day eventually arrives (and annuity rates are not exactly set in stone even in the short term - GOK what they will be in 5,10,15 or 20+ years time). The “pot” figure is also impossible to predict 20+ years in the future, as no-one has any way of knowing how investment returns are likely to perform in the intervening years.
I wasn’t looking for a definite! I was tragically dull in my youth and started saving 25 quid a month at the age of 25. Theres always been a best and worst case forecast, I get mne in an annual review. I might be wrong, but I’m fairly sure you can crunch the numbers into some websites and they’ll give you a guesstimate.
OK - here’s a guesstimate based on investment growth, salary etc simply keeping pace with inflation, and current annuity rates remaining unchanged (again, everything simply keeping pace with inflation, so that whatever you contribute now retains today’s value):
If the OP was aged 40 now, earning £29k a year and started contributing at the rate of 1% of his salary, with his employer matching his contributions at 1%, his pension pot after 25 years might be worth (very) roughly £15k at today’s values. This would typically buy him an annuity giving him an income of £700 a year (again at today’s values). That’s about 14 quid a week. ■■■■ all really - but that’s still 9% better than the £155 a week state pension…
roadcrew:
hi all, Ive just been auto enrolled into the workplace pension , my employer contributes the minimum of % 1.00, I contribute % 1.00 , and there is a management charge of % 0.5 annually, im mid 40s and earn approx 29 grand a year, …at my age and earnings, is it worth it ? should I opt out ? your opinions pls, thanks
0.5% is on whats in the pension pot NOT your 29K wages,any pension scheme is worth it as its extra to what your state pension will be when you eventually retire.
Are pensions like this really worth having? I know it’s free money from your boss but would you be better with a pay rise instead. I started a private pension over 30 years ago and was told at the time that by the time i’m 60 it would pay me a fortune I’ll be lucky to buy fish and chips, I’m sure if I had spent my money the goverment would still top me up the same as others get. If someone could say if you put this amount in you will get this amount out it would be ok but pensions are all guess work because of the time your waiting.
I dont think its worth bothering with, 1% is gonna be peanuts, unless you start young and pay in 10 or 15% of your wages it isnt going to amount to the price of a few pints after 10 years.
Also if you move jobs it goes back to zero again and in 20 years you will be picking up a several small pensions of a few pounds a week, that is assuming you get that far and the pensions have kept going.
It would work much better if you could pick one auto enrollment pension firm and stay with it for life, just keep paying in to it whatever job you were in, much simpler and you might have a chance of building up a nest egg…
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roadcrew:
hi all, Ive just been auto enrolled into the workplace pension , my employer contributes the minimum of % 1.00, I contribute % 1.00 , and there is a management charge of % 0.5 annually, im mid 40s and earn approx 29 grand a year, …at my age and earnings, is it worth it ? should I opt out ? your opinions pls, thanks
It’s worth it believe me, just try and increase your contribution if you can, your employer will have to match the amount. I had a work place pension with Fed Ex when I worked there, I worked for them for 6 years before stopping, 18 months ago I contacted the pension company to see if I could claim any of it ? They sent me $27k 
Over here I never joined a work place pension until I was 51 years old, at retirement I should get about $60k and besides that, over here we have the right to borrow and pay back into it, the pension so far has paid for 3 trips to the UK, 2 cars and a new swimming pool and I will still get the full amount when I retire
Don’t ever think a pension isn’t worth it.
Tony Res:
I dont think its worth bothering with, 1% is gonna be peanuts, unless you start young and pay in 10 or 15% of your wages it isnt going to amount to the price of a few pints after 10 years.Also if you move jobs it goes back to zero again and in 20 years you will be picking up a several small pensions of a few pounds a week, that is assuming you get that far and the pensions have kept going.
It would work much better if you could pick one auto enrollment pension firm and stay with it for life, just keep paying in to it whatever job you were in, much simpler and you might have a chance of building up a nest egg…
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When or If you change jobs you then transfer the pot you have accrued into your new providers scheme, no need for several small pensions.
For example I had a Pension with NFC or BRS which ever you know it as,redundant from there after 11 years and the pot was frozen due to my age.
I took out a Private pension with another provider until I joined the Final Salary scheme with my final Company before retiring, again my second pension was frozen as I could not have two contracted out Pensions.
The combined pension pot from BOTH of my previous schemes was then transferred into my Final Pension pot instead of four pensions I now have only two my State and Company pension.
Another example is my Wife never had a pension for the last 18 years of working but she had 13 years in a scheme with her previous employer.
She thought no more about it until her old Company Pension scheme contacted her and said she could have a lump sum of around 2k and a pension of around £50 a month,totally unexpected but its not to be sniffed at.
Tony Res:
I dont think its worth bothering with, 1% is gonna be peanuts, unless you start young and pay in 10 or 15% of your wages it isnt going to amount to the price of a few pints after 10 years.Also if you move jobs it goes back to zero again and in 20 years you will be picking up a several small pensions of a few pounds a week, that is assuming you get that far and the pensions have kept going.
It would work much better if you could pick one auto enrollment pension firm and stay with it for life, just keep paying in to it whatever job you were in, much simpler and you might have a chance of building up a nest egg…
Simplest solution is to simply transfer your pension to your new employer’s provider each time you change jobs (and of course to contribute more than just the minimum…).
I wasnt aware that all the companies will accept transfers but it would still better for you to choose your own for life…
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Possibly more convenient for the employee - but an administrative nightmare for the employer!
Sent using smoke and mirrors
A lot of company pension schemes don’t accept transfers in, especially the ‘defined benefit’ types like ‘final salary’ schemes. However, you don’t have to transfer your pensions, and there is no golden rule saying having all your pension pots in one place is any better for you. In fact, a bit of diversity may be an advantage.
Be aware that there are a huge number of pension scams out there at the moment. Don’t EVER trust a cold caller offering you a free pension review, don’t sign forms if they send a courier round to your house, don’t believe them if they say they are paid by the government or representing a government agency. These people are going to STEAL YOUR PENSION. Make sure anyone giving you pensions advice is authorised and regulated by the Financial Conduct Authority (FCA) to do so. The register is here: register.fca.org.uk/
Are pensions worth it? Even if the amounts are small then how can they not be worth it, if your employer is putting in money as well? If someone offered you £1,000 for free would you reject it because it is too small?
For most people a pension is largely a tax deferment mechanism. You get tax relief up front when you put the money in, but you will pay tax on 75% of it when you take it out. You are currently allowed up to 25% of your ‘pot’ tax-free, but the rest is taxed as income. This applies whether you buy an annuity for life, or if you choose to take it all as cash. Yes, since 2015 you can take the whole lot as cash if you want at any time from age 55. Be careful, though, as the PAYE tax on the 75% can very easily push you into the higher tax bracket.
hi all, as the pension pot is mostly invested in the stock market, what would happen if there was another financial crash ? cant see the government stepping in to help ,
Actually the Government does help - indirectly;
Typically the investment in shares etc is done while your retirement is still a long way off in the future. That means there is still time to recover from short- and medium-term dips in the markets. But as you get closer to retirement, your money is gradually moved to safer (but with lower returns) investments such as Government Bonds, Gilts etc.
But regardless of how your pension investments eventually perform, retirement income from it is still in addition to the State pension - Without it your income would be the equivalent of £155 per week. The thought of trying to achieve anything resembling a comfortable, enjoyable retirement on such a meagre sum scares me ■■■■■■■■■
Sent using smoke and mirrors
Roymondo:
But as you get closer to retirement, your money is gradually moved to safer (but with lower returns) investments such as Government Bonds, Gilts etc.
Check the specifics of your particular scheme, and your chosen investment fund/strategy as this is not always automatic. If you have an option often called ‘lifestyling’ then this will do the automatic switching to progressively lower risk investments as you approach retirement. Be careful, though, as it might be set based on your default ‘normal’ retirement date, or possibly using a ‘target’ retirement date that could be different.
If you are not in a lifestyling investment strategy then don’t expect anyone to move your investments for you, you might have to do it all yourself.
I have decided to change my portfolio from the default safe option to the high risk or adventurous option. I did this to compare the results after a year with another driver.
Nothing ventured and all that.
FWIW, I have an aggressive approach to investing funds, thought I might slow down and move to safer investments as I got older, but no, still aggressive and it has served me well so far. Couple of 
moments.