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19th August 2006, 07:34 AM
Probably touched on before but I can't find it as the search button isn't working at the moment... I was being given a stern lecture the other day by my bank manager for not having a pension. Is there a list of suitable pensions for people who change employers on a regular basis available anywhere???
Lucy
Lucy
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19th August 2006, 11:54 AM
I think you should probably ask your bank manager, especially if you are based in and working in Ireland.
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20th August 2006, 08:01 PM
I think this is worth a poll.
I'm in my mid thirties and don't have a pension. It's one of many many things I don't have that most people have. Whether archaeology or my related slack attitude to the 'real world' is to blame is hard to establish.
'Have a good plan, execute it violently, do it today'.
General MacArthur
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20th August 2006, 09:10 PM
On my wages at the moment I cant afford a pension, its as simple that, even though I am working in London and live at home, I've got so much to payoff from being a student that soaks up most of money.
Dont know if thats the same for anyone else.
May god go with you in all the dark places you must walk.
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21st August 2006, 10:07 AM
Having seen this from an employer point of view, when a business is sufficiently small they can opt out of providing even stakeholder pensions (which were meant to be the ideal solution for lower paid workers as I recall - my knowledge is a little out of date now). The extra admin and the (at the time) pitiful return for the employees made it a non starter for either party. Anybody actually paying into one of these blessed things to give a current primary assessment? [?]
Desiderate le fritture con quello?
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21st August 2006, 10:23 AM
Dear Lucy,
Why not get a stake holder pension with your bank? You can contribute as little or as much as you want. I dont know whther they will turn out to be a load of government hyped bol****s though: Ask me again when I am 65...
G
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21st August 2006, 10:56 AM
What is it that they introduced here, a PRSA or something?
i did look into it about a year ago, and figured out that I would be eligible, even as a job-hopping site worker. Far as I remember, you open it yourself with your bank, and add to it yourself, not via your employer, so it is suitable for job-hoppers like us.
http://www.oasis.gov.ie/retirement/pensi...ounts.html
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21st August 2006, 12:04 PM
For those who do not have a pension I have the a few word of advice that I have learned the hard way .
Start contributing to a pension as early as possible in your career. It may only be a small amount but the younger you are when you start contributing the longer it will be invested for.
Do the sums and scare yourself into doing something about it. If you were retiring today and wanted an income of 18k per year from your pension then you would need a pension fund of around 300k to buy an annuity with.
If you are in your early 30s then when you retire in around 25 years time the 18k annual income rises to approximatley 48k through inflation . This means that your pension fund will need to be at least 800k, possibley 1 million quid!.
Now decide how and what you can achieve and do something, no matter how modest to begin with and get all the free adice you can from banks, building societies etc.
One last tip. If you start a private pension wacth out for the charges. The differnece between a 1% and a 1.5 % charge may not seem much but over 25 to 30 years it can mean a huge amount of money.
Magpie.
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21st August 2006, 12:21 PM
Thanks for the advice Magpie but rather than scaring me into activity, those calculations make me even less inclined to start a pension. If I have to salt away a million quid in the next thirty years, that's 33K per year, which is rather a lot more than my gross annual salary let alone what I have left at the end of each month. I agree that if I had started 15 years ago it would have been less, but that still comes to 22K per year throughout my twenties.
Having taken a long hard look at the financial realities, the most posistive approach I have found is to start looking for a warm cheap country with decent medical facilities that allows foreigners to buy property.
Either that, or if you like you can buy second houses cheaply here in Lincolnshire and rent them out to people like me (
).
'Have a good plan, execute it violently, do it today'.
General MacArthur
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21st August 2006, 12:37 PM
Tom,
Its tough but not quite a tough as you think.
Remember that you get the tax back on pension contributions and that compounding takes effect.
If you needed to save 1 million quid over 30 years and the average return was 5 % then that equates to around 14700 pounds per year.
If the average return was 8 % ( not impossible ) the the amount you need to save is 8000 pound per year, from GROSS salary
OK, so this is still a lot of dosh from a low salary so save 4000 a year in a pension and get 24k a year in 30 years time instead. Its got to be better than poverty in your old age.
I should add here that I have reseached private pensions in detail for my own purposes BUT I AM NOT qualified to give financial advice.
I do however recommend that you seek advice and start some kind of saving for retirement.
