My work pension scheme.

[cisamcgu]

Pensions are complex things, if in doubt, get advice
https://www.pensionwise.gov.uk/en,
or ask on MSE - lots of clever people there, with, seemingly, a lot of time on their hands :
https://forums.moneysavingexpert.com/categories/pensions-annuities-retirement-planning

 

[dodgy]

or ask on MSE - lots of clever people there, with, seemingly, a lot of time on their hands :
https://forums.moneysavingexpert.com/categories/pensions-annuities-retirement-planning

I have learned a LOT from that very forum. They're knowledgeable, but can be unforgiving if you don't give them the information they need in the very first post

 

[Electric_Andy]

Just read this , might be helpful to anyone else on NHS pension. It's slightly clearer now, thanks @cisamcgu

 

[shirokazan]

If I didn't rent out a place then the lady that lives in it would not only be homeless, she'd quite likely have to leave the island in order to be able to afford somewhere else. It's a good thing I have no ethics.

A discussion more suited to the News & Current Affairs section, really. Your post makes it sound like your principal motivation is providing this lady with a roof over her head, and the rental income is irrelevant.

 

[BoldonLad]

Just as an aside, without wishing to seem nosey, what sort of monthly contributions do you good folks put into your pensions?

I am retired, and, taking out, rather than putting in, but:

During the years I was an Employee, I contributed 6% of Salary (Gross) into a Final Salary Scheme, Employer contributed 12%

For the last 10 years of my "working life" I was self employed and put an average of £20,000pa into a mixture of personal pension scheme, and Stocks/Shares ISAs.

Now retired and living off the proceeds, plus state pension. I am happy with my income, but, could always spend more (plenty of shiny toys out there).

 

[Brads]

Had a DB pension as an SSEB member from pre 2001.
Was going to pay around £18k + from aged 60.
Transferred it out into a SIPP at £730k value, now worth £812k. I am 52 so am jacking it all at 55

Lots of choices regards your pension nowadays.

 

[Drago]

A discussion more suited to the News & Current Affairs section, really. Your post makes it sound like your principal motivation is providing this lady with a roof over her head, and the rental income is irrelevant.

If the discussion is more relevant elsewhere, then why do you keep mentioning it? You brought the matter up, not me.

I bought the place I tending to move back "home" when I left the army, but ended up ultimately moving in with Mrs D mark 1. I was going to sell,but was approached by the daughter of a friend of my dad's wanting to rent it for his daughter, and there she remained to this day. I don't need the money these days, with 5 separate and significant income streams between myself and Mrs D, and I still rent out to the same lady for the same £300 a month that I did 3 decades ago. She'd be paying 2.5 times that at least anywhere else on the island, if she could find anywhere at all. Indeed, shes not paying anything at the moment as I volunteered her a 3 month payment break while C19 was kicking off and she can't work.

My main motivation is simply hanging on to the place for when Mrs D joins me in retirement and having someone in it that I can trust who'll keep it in good order until that time. In recent years I've paid for all new external windows and doors and a re-slating of the roof, which is about 4.5 years rental income blown on that alone, so I'm not exactly being chauffeur driven in a Bentley while I light cigars with £50 notes off the back of it. I didn't purchase it as a buy to let profit making exercise. I ended up with it surplus through happenstance, and the profit you seem to think I'm revelling in does little more than attend to the physical upkeep of the property.

The lesson there is don't judge everyone by your own low standards.

And that brings it full circle back to topic. The main benefit for me is that I'm not spending my own pension, commutation or injury award maintaining the place. I can spend that money instead on being chauffeur driven in a Bentley and lighting cigars with fifties...

 

[johnblack]

Just as an aside, without wishing to seem nosey, what sort of monthly contributions do you good folks put into your pensions?

Just trying to stick in as much as possible, probaly about 15k pa. The returns have been so much better than any savings account, although I havent taken a look at the hit it's taken over the last few months. I'm a bit too young for retirement but I'm going to bang in as much as possible till I'm 55 and re-assess. Can't see there'll be any rush to take a lump sum or retire but I want options.

 

[vickster]

I’m thinking I should be paying rather more in, maybe once the economic upheaval settles and I don’t need such reserves in the business account

I do have a fair amount of cash in various places (PBs, ISAs) and much more is going in than out for now

My understanding of such matters is limited, should discuss with accountant

 

[screenman]

If the discussion is more relevant elsewhere, then why do you keep mentioning it? You brought the matter up, not me.

I bought the place I tending to move back "home" when I left the army, but ended up ultimately moving in with Mrs D mark 1. I was going to sell,but was approached by the daughter of a friend of my dad's wanting to rent it for his daughter, and there she remained to this day. I don't need the money these days, with 5 separate and significant income streams between myself and Mrs D, and I still rent out to the same lady for the same £300 a month that I did 3 decades ago. She'd be paying 2.5 times that at least anywhere else on the island, if she could find anywhere at all. Indeed, shes not paying anything at the moment as I volunteered her a 3 month payment break while C19 was kicking off and she can't work.

My main motivation is simply hanging on to the place for when Mrs D joins me in retirement and having someone in it that I can trust who'll keep it in good order until that time. In recent years I've paid for all new external windows and doors and a re-slating of the roof, which is about 4.5 years rental income blown on that alone, so I'm not exactly being chauffeur driven in a Bentley while I light cigars with £50 notes off the back of it. I didn't purchase it as a buy to let profit making exercise. I ended up with it surplus through happenstance, and the profit you seem to think I'm revelling in does little more than attend to the physical upkeep of the property.

The lesson there is don't judge everyone by your own low standards.

And that brings it full circle back to topic. The main benefit for me is that I'm not spending my own pension, commutation or injury award maintaining the place. I can spend that money instead on being chauffeur driven in a Bentley and lighting cigars with fifties...

What brand are you smoking, just in case I need to buy you a Xmas pressie and cannot come up with any other idea's.

 

[PK99]

I wouldnt' do rental properties, not domestic anyway - doesn't fit with my ethics. As for your original plans...I had similar 1990s too.

Having seen first hand the way Buy to Let pushes up house prices in London, and the way it pushes down the quality of rental properties where BtL landlords are Annual Return driven, it does not fit with my ethics either.

 

[johnblack]

Having seen first hand the way Buy to Let pushes up house prices in London, and the way it pushes down the quality of rental properties where BtL landlords are Annual Return driven, it does not fit with my ethics either.

Not all heroes wear capes.

 

[neil_merseyside]

I paid in the same amount as my boss did (£170 back in the day, 6%?) and every pay rise after that I upped it to fight inflation, did that for maybe 15 years but it's had none in since, but as a supplement to state pension it should be enough.
Pay in as much as you afford, do it NOW.

General rule of thumb was pay same percentage of salary as your age when you start paying in, says it all about what is needed for a NICE retirement. But 20% at 20 is "nah, I want a car/phone/holiday" 50% at 50 is "I can't I've a car/house and need a holiday" BUT it needs doing, you can't rely on the state as they run a Ponzi scheme, and in any case have too many takers (despite this latest thinning).

 

[Dave7]

Blimey - I only paid into my scheme for 2 years and got £2.5k at age 60 plus (currently) £600 p.a. from it!

Similar here. I started late and only had 10 years but it gives me £3K per year.
Scary what the future holds for the next generation.

 

[Drago]

I know people my age who are panicking now having made no pension provision and some are shovelling vast monthly amounts into pensions to try and claw something back. It also helps that the contributions aren't reckonable for CSA calculations, and I know one bloke who make huge pension payments solely to reduce his payments to his ex.