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Do you have a pension?

(26 Posts)
Teeb Tue 02-Sep-14 12:14:26

My sister is now 18 and we were discussing future planning (thrilling conversation for a teenager I know!) and it got me to wondering about what plans most people have actually made, particularly for women. Do you have a typical pension or perhaps an alternative pension pot like a rental flat which you consider to be your pension. I'm not really sure if the standard company pension these days is such a good idea to direct her towards, unless she were to be employed in the public sector.

TheBeekeepersDaughter Tue 02-Sep-14 12:20:00

I have a public sector pension. I also do private work but my pension is one of the reasons I also stay in the public sector. 12 years of contributions so far, although six of these have been as a part-time worker. I also have a rental property, which should be mortgage-free in about 10 years, so I plan to use this to supplement my pension.

I don't know much about private schemes, but I do know that it's the early contributions that make the difference, so you and your sister are very smart to be considering this.

squoosh Tue 02-Sep-14 12:21:13

Yes.

There will be no state pension in 40 years time so a pension is vital.

reddaisy Tue 02-Sep-14 12:22:43

Yes I do. I am in my thirties and I only started earlier this year when I started working in the public sector and it is a good pension so I may never be able to leave!

Rosebug258 Tue 02-Sep-14 12:24:56

I have a local government pension been in it for nearly 9 years. When I joined it was the best pension to have.

My husband has no pension he's going to be slightly shocked when he only gets his state one!

Teeb Tue 02-Sep-14 12:57:54

Rosebud do you think he feels more comfortable knowing that you do have a pension?

superbagpuss Tue 02-Sep-14 13:00:10

I have two pensions, one attached to the company I work in now and one that is an ex company pension that I still pay into.

DH has no pension but does have a flat that he rents out.

I plan to retire early so want to be prepared.

SylvaniansKeepGettingHoovered Tue 02-Sep-14 13:01:08

Yes I started paying in to it at the age of 18, I am now almost 40

sleepyhead Tue 02-Sep-14 13:16:21

I've been paying into one pension or another since I was 23. My first pension scheme went bust (7 years contributions) so became part of the government compensation scheme and I get (I think) 90% of what I would have done if they hadn't gone kaput.

My current scheme is NHS superannuation, so hopefully safer (but who knows). It's a fair whack of my salary and god knows we could do with the money, but I wouldn't think of leaving.

Dh has now been enrolled in NEST but previously had no private pension. My pension will have to do both of us probably.

The key is to save something, and save early. Saving from day one of your job means that you don't miss the money so much. Try to save a percentage of your salary so that it goes up as (hopefully) you earn more. The tax benefits make pension saving attractive, but I've no idea about the cons of fees etc with private schemes.

Vitalstatistix Tue 02-Sep-14 13:18:27

oh yes. It's one of the first things I sorted out when I started my first proper job at 22. If you rely on a state pension, you'll be hungry and cold!

WittgensteinsBunny Tue 02-Sep-14 13:21:09

I'm always surprised to hear that people think private pensions are a waste of time. I have a pension (early 30s) and started saving in my mid-20s, although it's currently paid up whilst l'm a SAHM for a few years. The government top up contributions with tax relief, so you get (assuming you're a basic rate tax payer) 20% on all contributions. So, if you save £80 per month, the government will put in £20 on top; there's virtually no tax on any gains made either. I don't know any other saving method which is so efficient! If your sister can start saving now, a basic stakeholder pension would do and she will benefit massively from compound gains (find a compound calculator, or even a pensions calculator). It would be a great idea, if she can afford it and is unlikely to need the funds back before she's 55.

AmandaTanen Tue 02-Sep-14 13:23:30

Been paying into a pension since I got my first "proper" job at 21 after graduating, was NHS super ann, scheme and i transferred it to my local government pension when I started the job that I now have, 15 years of payment so far, so part-time, which i plan to add too when the kids have fled the nest! DH also has a pension. We both figured there will be no state pension in years to come, so planned for it.

Rosebud are you worried that your DH won't get a state pension? Your pension may make it impossible for him to claim any benefits, so you will have to survive on yours alone!

stargirl1701 Tue 02-Sep-14 13:24:18

Yes. I have a state sector pension (teaching). 11% of my salary is deducted a month. I need 45 years of full contributions for a full pension. I started teaching at 22 so that is 67 minimum. I have had two mat leaves though.

Pagwatch Tue 02-Sep-14 13:27:34

Yep.
I have one, DH has one, DS1 aged 21 has one, DD aged 11 has one.

bigkidsdidit Tue 02-Sep-14 13:32:07

Yes, DH and I both have final salary scheme pensions and we pay in AVCs when we can. Plus DH has a private one too. I pay 7.5% of salary which is painful but my employer puts in 14% so I can't complain!

I'm going To get one for my dc (3 and 1) in a few years.

My mum was a SAHM and my dad left her and she had no pension. It's put the fear into me, my retirement will never be reliant on the goodwill of anyone else.

Stargirl, I'm happy to be corrected, but your maternity leaves should count as full contribution as long as your maternity pay lasted (39 weeks). Although you will only have contributed a percentage of your maternity pay, your employer should still have been putting in the equivalent % of your full salary for their contribution.

Unless your mat was a lifetime ago under different rules. But I'd still query whether they could exclude those years from being contribution years, since that would be discrimination. Might be worth asking the question.

MaidOfStars Tue 02-Sep-14 13:39:09

I am in the Universities Superannuation Scheme. Each month, I pay something like 8% (tax relief applied), my employer pays 16%. I am in the final salary scheme, but who knows how long that situation will be maintained. I've been in in for 12 years, with no breaks of service. I wouldn't dream of leaving it; it's a massive plus in my field.

stargirl1701 Tue 02-Sep-14 18:37:49

Chris, I just assumed these years wouldn't count! Not a lifetime ago...just started my second one 2 weeks ago with the arrival of DD2. grin

PinkSparklyElephant Tue 02-Sep-14 18:47:37

I've got a pension with my current job and 2 small ones from previous jobs. My current one is a fairly good one but still doesn't forecast paying out enough to live on and there's no way I can pay in more and live!

Thanks for reminding me - I really must sort out one of my old pensions as it's still at my Mum's address and in my maiden name!

onedev Tue 02-Sep-14 18:52:19

Yes - agree with pp who said there won't be a state pension by the time we retire so it's imperative that people have good pensions.

magicstar1 Tue 02-Sep-14 18:56:46

I started mine when I was 22 and starting my first proper job...my dad insisted I look into it. It started as only €50 per month, and now I pay €700 per month into it. It's worth €80,000 now and I have 25 years left to pay in. DH only pays €100 per month into his, so I've told him he can stay at home while I travel the world wink

purplemurple1 Tue 02-Sep-14 19:00:37

I have a buy to let (no mortgage)
OH owns the house we live in (no mortgage)
We both also have pensions and some savings I think everyone should save for old age if they can.

If your working it must be worth at least taking the employer contributions and tax relief pension. After that I would save in an isa as its not much different to a pension (in it's benefits) and it means you can delay the decision to weather to use it for property or a pension.

Lonecatwithkitten Tue 02-Sep-14 19:06:08

Yes and as soon as I could I took control of it in a SIPP with a WRAP too. At current rate I will be better off retired than working.

Rosebug258 Tue 02-Sep-14 19:08:26

Teeb

I think my pension is his security yes! I think he feels as long as we are paying into one we will be ok in our old age! I know his company have just upgraded their pension policy not yet got around to talking about it fully yet, think he's a bit daft relying on mine

Eggsaregoodforyou Tue 02-Sep-14 19:21:01

I have been paying in to my public sector pension for about 8 years. I am aiming to retire at 55 but to do that will need to start paying into a second pension soon ( am planning on starting a SIPP next year when DC2 starts school).

I don't believe the current state pension situation will be sustained for my generation or my kids, eventually it will be a retirement in medical grounds only I think, or will be so low no one will choose it unless they have a pension privately.

I pay nearly £200. Month into my pension although I do get some tax relief. I could really really use the money but would not leave the scheme unless I was destitute! No way do I plan to live on £145 a week in my dotage!

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