spooky3 Posted November 29, 2011 Author Share Posted November 29, 2011 The government certainly haven't spent my private pension on improving schools. That I can assure you! Oops, I read it as public, I didn't expect it to be private pensions, I would have thought that obvious... Link to comment Share on other sites More sharing options...
Guest sibon Posted November 29, 2011 Share Posted November 29, 2011 They don't really. The real problem is people start paying in late, and don't pay enough in. They also don't remember to increase their contributions to take account of inflation. I see quite a few people with pensions that they started years ago, contributing £50 a month, and they somehow think this will be enough to give them a decent income in retirement. This is the bit that I don't know about. I've always paid hundreds of pounds a month into a pension, even when I was struggling to pay a mortgage rate of 13% I've read that private pensions don't pay well and that annuity rates are poor. The poor performance doesn't tally with my experience of investing in the stock market. Even in recent years. Link to comment Share on other sites More sharing options...
Andy Posted November 29, 2011 Share Posted November 29, 2011 I've read that private pensions don't pay well and that annuity rates are poor. The poor performance doesn't tally with my experience of investing in the stock market. Even in recent years. I think half the problem is people don't really understand what they're doing. I was talking to someone the other day who's just sold all his shares 'because the market is too low'. And he's planning to start investing again 'when things pick up'. Anyone with an ounce of sense knows that when the market is low, you don't sell, you buy some bargains. The same people are sadly those who object to paying for professional financial advice. My pension fund has lost thousands of pounds of value in recent months. But as I'm not planning to retire for at least 30 years, it's got plenty of time to make that back. A (private) pension in its self cannot lose or make money. It's simply a tax efficient wrapper. It's the underlying investments that make or lose money. Pensions just have a bad reputation, like endowments and Payment Protection Insurance. Annuity rates are poorer than they used to be. In part that's because in the past the actuaries got their sums wrong and paid too high. There are alternatives to annuities though. Link to comment Share on other sites More sharing options...
MrSmith Posted November 29, 2011 Share Posted November 29, 2011 You're wrong. The public sector has existed independently from private business for hundreds of years until it became a political football for the cretins in the commons to kick about - That's when the two started being billed as codependent and interlinked. Private pension funds were raided, devalued and sacrificed by your employers to appease the government and folk want to criticise us for not following your mistakes? Please. It didn't exist before the private sector because the without the private sector it couldn't have been funded. Link to comment Share on other sites More sharing options...
Swan_Vesta Posted November 29, 2011 Share Posted November 29, 2011 It didn't exist before the private sector because the without the private sector it couldn't have been funded. Really? Are you sure? Give it some thought and then come back. Link to comment Share on other sites More sharing options...
spooky3 Posted November 29, 2011 Author Share Posted November 29, 2011 Really? Are you sure? Give it some thought and then come back. I think your wrong, way back the government used to ask for private investors even for war. A government could only afford to pay it's workers through taxation, private investment or conquering and plundering. And the people can only afford to pay taxes if their making money. Link to comment Share on other sites More sharing options...
Lockjaw Posted November 29, 2011 Share Posted November 29, 2011 I'd have enjoyed the investment bit too. I like a bit of trading:) Hiya Sibon. Investment and trading, unless you have some information that others don't, are pretty much polar opposites. If you wish to find an alternative home for your pension contributions I would suggest a diversified portfolio of large cap. high yielding shares. Look for companies with a clear policy of year on year dividend increases, preferably above inflation. if done properly you will achieve an income of 50 - 75% of that you would achieve with your teachers pension. To counter this lowering of your potential retirement income, you have the advantages that: a. you can take the income any time you like - If you don't need it, reinvest it to increase your income. b. the income is indefinite - passes on to your children and grandchildren into perpetuity, assuming the capitalist status quo is maintained. c. you can sell the shares and have your capital back if you wish. d. sad unemployed people won't erroneously claim they are funding your pension. Link to comment Share on other sites More sharing options...
Guest sibon Posted November 29, 2011 Share Posted November 29, 2011 Hiya Sibon. Investment and trading, unless you have some information that others don't, are pretty much polar opposites. If you wish to find an alternative home for your pension contributions I would suggest a diversified portfolio of large cap. high yielding shares. Look for companies with a clear policy of year on year dividend increases, preferably above inflation. if done properly you will achieve an income of 50 - 75% of that you would achieve with your teachers pension. To counter this lowering of your potential retirement income, you have the advantages that: a. you can take the income any time you like - If you don't need it, reinvest it to increase your income. b. the income is indefinite - passes on to your children and grandchildren into perpetuity, assuming the capitalist status quo is maintained. c. you can sell the shares and have your capital back if you wish. d. sad unemployed people won't erroneously claim they are funding your pension. Genius. Will I have to pay income tax though? I don't at the moment, apparently. Link to comment Share on other sites More sharing options...
Lockjaw Posted November 29, 2011 Share Posted November 29, 2011 Genius. Will I have to pay income tax though? I don't at the moment, apparently. Yes. Include that in your comparitive calculations. Also, do not assume the status quo, regarding your current pension rules, will remain .. um... quo, no ... status, that's it. Link to comment Share on other sites More sharing options...
Guest sibon Posted November 29, 2011 Share Posted November 29, 2011 Yes. Include that in your comparitive calculations. Also, do not assume the status quo, regarding your current pension rules, will remain .. um... quo, no ... status, that's it. You should never assume anything. For example, the Tory government assumed no support for public sector strikes . See how wrong they were. Link to comment Share on other sites More sharing options...
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