Transferring final salary pension to private scheme

[Pro Tour Punditry]

Elaborate please.

I am not sure what to elaborate on - I have no idea re my pension. I just pay into it cos I have to, I have no expectations of my pension and do not view it as something my children will benefit from. They have my genes, what fecking more do they want??!!

 

[Pat "5mph"]

Are you planning never to get old @Marmion?

 

[Pro Tour Punditry]

Are you planning never to get old @Marmion?

One day I might be as old as you Pat

However, I can see no reason at all for me to give consideration, other than "I need to pay".

**warning - venturing into P&L territory**
Pensions are a f*cking scam, the rich get rich and everyone else gets screwed over; people get told "think of your children" and feel obliged to contribute. I recently looked at my dad's pension after being given power of attorney and it's a f*cking disgrace - he paid in for years, thinking he would benefit, and he gets next to f*ck all. Capitalist pricks.

 

[simon.r]

Capitalist pricks.

Yeah but...pragmatism kicks in.

 

[marzjennings]

I am not sure what to elaborate on - I have no idea re my pension. I just pay into it cos I have to, I have no expectations of my pension and do not view it as something my children will benefit from. They have my genes, what fecking more do they want??!!

Sorry, somewhat bewildered that anyone wouldn't be concerned about their pension.

How do you think you're going to have any cash to spend when you retire?

 

[Pat "5mph"]

@Marmion you mean private pensions of course?
I did not know they are compulsory, I thought they are optional.
I also thought they are for your own old age, did not know you can leave them to your children.
If we could have invested our national insurance deductions in a private pension found all our working life we would have a good pension, well, better than the state pension we will never get if they carry on upping the age.

 

[simon.r]

One day I might be as old as you Pat

However, I can see no reason at all for me to give consideration, other than "I need to pay".

**warning - venturing into P&L territory**
Pensions are a f*cking scam, the rich get rich and everyone else gets screwed over; people get told "think of your children" and feel obliged to contribute. I recently looked at my dad's pension after being given power of attorney and it's a f*cking disgrace - he paid in for years, thinking he would benefit, and he gets next to f*ck all. Capitalist pricks.

I'm not so sure. My parents were both from very poor backgrounds (without wanting to start a competition I do mean *very* poor backgrounds) but my Dad struck lucky with his pension and enjoys a financially secure old age.

I was lucky to start work in 1980 for a nationalised industry (which was de-nationalised (in '86)?) when final salary schemes were common. My children aren't as lucky, but I hope they'll be able to benefit from my good fortune.

 

[Flick of the Elbow]

Anyone else done or considering doing similar?

Yes, giving it a great deal of thought, as are many of my colleagues. I have now engaged an IFA to do a full assessment.
NB the bit above about income tax, I believe that you can largely avoid paying it by using your lump sum. Pay that into a separate pot. Draw off as much as you can from the main pot, i.e. up to the point when tax becomes payable. Then top up from your tax free pot.

 

[simon.r]

Are you sure your not getting scammed with this investment? Not being rude but a lot of people have lost their life savings through these schemes.

As certain as I can be.

 

[simon.r]

@Marmion you mean private pensions of course?
I did not know they are compulsory, I thought they are optional.
I also thought they are for your own old age, did not know you can leave them to your children.
If we could have invested our national insurance deductions in a private pension found all our working life we would have a good pension, well, better than the state pension we will never get if they carry on upping the age.

@Pat "5mph" It's too complicated to explain here, but it's worth looking into the options about what can be left to children.

 

[simon.r]

Yes, giving it a great deal of thought, as are many of my colleagues. I have now engaged an IFA to do a full assessment.
NB the bit above about income tax, I believe that you can largely avoid paying it by using your lump sum. Pay that into a separate pot. Draw off as much as you can from the main pot, i.e. up to the point when tax becomes payable. Then top up from your tax free pot.

I'm told that CETV's are at an an all time high at the moment and are likely to reduce. But, as said previously, take advice.

 

[Pro Tour Punditry]

Anyway, as this is Cafe..

I'll continue doing what I "have" to do, I'll be getting shafted, I know this.

 

[Pat "5mph"]

@Pat "5mph" It's too complicated to explain here, but it's worth looking into the options about what can be left to children.

Just curious, I don't actually have children
But I know that any pension that can be passed on must logically be of a lower return than one that dies with you.

 

[The Jogger]

I use to attend training days for our company pension, which is one of the best Final Salary pensions in the country. I was on the Pension Consultation Council and we were always advised by Towers Watson who ran it, to remain in the scheme and advise others to do so. I have followed that advice and feel secure in my choice, I think it was good advice but only time well tell.

 

[marzjennings]

If we could have invested our national insurance deductions in a private pension found all our working life we would have a good pension, well, better than the state pension we will never get if they carry on upping the age.

One of the reasons I've stayed in the US are the 401k retirement plans most companies offer. Technically a private investment that you employer pays for, covering all costs and matching my investments while I work. All interest is tax free until I retire when I can decide how I'll spend my money.