Pensions

[Nigella's Cream Pie]

I'm pissed off at the moment because to qualify for a full state pension they equalised it a while back at 30 complete years NI contributions. From 2016 under the new state pension rules I need 35 years of paid up NI contributions to get a 100% pension. Not good if you now only work part time I also have to wait until I am 66 to get it but there is likely to be another review in 2020 where knowing my luck they will bring forward the date when 67 becomes the new qualifying age.

If you work part time you only need to earn above the lower earnings limit to make the year a qualifying one, you don't actually have to pay any NI unless you earn above the primary threshold. The weekly figures for 2013/14 are £109 and £149.

 

[beorhthelm]

Maybe the reason why Pensions and matters of personal finance are so complex is because by making them ever more complex the man in the street is forced to seek out advice from the "learned" classes and then pays hansomely through the nose for it.

i appreciate the cynicism, it may be a little un-deserved here. until very recently there wasnt a free and open access to all manner of opinion and learning (this here interwebs) and yet people went to specialists for the simple stuff, so they dont *need* it to be complicated. the problem is probably more to do with government governing for the sake of it. in the past 15 years the amount of tax legislation has balloned from about a foot high stack of rules and guidance to 6 foot (or something like that). its micro management and using the tax system to tweak favours for vested interest then trying to close the new loop hole, and pensions are part of that system. less government and law making is the anwser to alot of our troubles.

From 2016 under the new state pension rules I need 35 years of paid up NI contributions to get a 100% pension. Not good if you now only work part time

isnt it the case that even if you are earning under the NI threshold your employer pays contributions, so that counts towards your 100% pension? count yourself lucky on the 35 years, it used to be higher than that, i paid to cover my NI for a couple of studious years where i didnt earn anything.

 

[LamieRobertson]

Good move - I have a SIPP too, but alas I am stuck until age 55 now (or more likely 60 as I am sure they will hike the minimum age for private pensions again at some point over the next 20 year)

If they lowered the age to 50 again I would be the happiest man alive

I know a SIPP isn't for everyone..but it does encourage you to take responsibility for your pension and you can see day to day how it is performing and you aren't paying some faceless fund manager ..I have managed to make my capital pot grow and take the maximum amount of income at the same time

 

[Dean Deyn]

This is the point really. I'm not sure why people who can't afford their own pension, and face having to live off maybe a half (or, in some cases, considerably less) of their final salary, should fund others so they can enjoy a full final-salary pension. Three-quarters or something would be enough. Surely the older you get the less you spend?

The term 'final salary scheme' does not mean that your annual pension is equal to your annual salary on retirement. Rather it means that your pension is a percentage of your final salary, the percentage depending on the number of years worked for the employer. The actual calculation varies between different employers and pension schemes, but typically in local government or civil service pension schemes, you earn entitlement to a pension of one eightieth or one sixtieth of your salary for each year worked. So, if you worked for the same employer for 40 years, you might be entitled to a pension of 40 eightieths, i.e. half your salary. In private sector companies I have worked for, the calculation has been more generous, some entitling you to one fortieth of your salary for each year worked.

 

[Rugrat]

I have managed to make my capital pot grow and take the maximum amount of income at the same time

That's some going if you haven't got an advisor helping you. With the income rates increasing it would be some achievement to keep that going

 

[LamieRobertson]

That's some going if you haven't got an advisor helping you. With the income rates increasing it would be some achievement to keep that going

I've always taken an interest in the markets, but i am fairly careful ..try not to get too greedy and avoid very risky plays with a mixture of bonds and direct equity investment ...and i use adfvn.com ...there are some cracking people on there who i sometimes follow and get ideas from. Maintaining current performance? Who knows..big world event and it all comes tumbling down....my starting pot wasn't exactly huge, i don't think people realise how much you actually need to provide good income from an annuity (won't be having to do that for another 20 years.

 

[Silkster365]

I've always taken an interest in the markets, but i am fairly careful ..try not to get too greedy and avoid very risky plays with a mixture of bonds and direct equity investment ...and i use adfvn.com ...there are some cracking people on there who i sometimes follow and get ideas from. Maintaining current performance? Who knows..big world event and it all comes tumbling down....my starting pot wasn't exactly huge, i don't think people realise how much you actually need to provide good income from an annuity (won't be having to do that for another 20 years.

What's that site again? I'll check it out - adfvn.com doesn't seem to bring anything up?

 

[LamieRobertson]

What's that site again? I'll check it out - adfvn.com doesn't seem to bring anything up?

sorry its uk.advfn.com
i use there monitor settings to add in my equity holdings and then use that to keep on eye on my portfolio day to day...you have to pay a sub if you want it to show continuously during the day ..otherwise it does need refreshing at times...out of trading hours it shows all the time (hope that makes sense)..then there is a bulletin board which you can post to ..bit like here..but you don't really need to start any threads...ive got to know the decent posters worth following ..but at end of day its your money and you need to make your own mind up....then of course there are the numpties (nsc hasn't got all of them)...have a look...its useful for monitoring a portfolio and keeping an eye on day to day events ...hope that helps..bit hard to explain

 

[Silkster365]

sorry its uk.advfn.com
i use there monitor settings to add in my equity holdings and then use that to keep on eye on my portfolio day to day...you have to pay a sub if you want it to show continuously during the day ..otherwise it does need refreshing at times...out of trading hours it shows all the time (hope that makes sense)..then there is a bulletin board which you can post to ..bit like here..but you don't really need to start any threads...ive got to know the decent posters worth following ..but at end of day its your money and you need to make your own mind up....then of course there are the numpties (nsc hasn't got all of them)...have a look...its useful for monitoring a portfolio and keeping an eye on day to day events ...hope that helps..bit hard to explain

Many thanks for this it looks a great site - have been looking for something like this for a while. Much appreciated

 

[LamieRobertson]

Many thanks for this it looks a great site - have been looking for something like this for a while. Much appreciated

your welcome..you can post on the bulletin board anytime ..just need to register..there are other sites out there but I've found this the best

 

[seagullsovergrimsby]

isnt it the case that even if you are earning under the NI threshold your employer pays contributions, so that counts towards your 100% pension? count yourself lucky on the 35 years, it used to be higher than that, i paid to cover my NI for a couple of studious years where i didnt earn anything.

It was 44 years for men (I think you had to get in 39 years of contributions by the age of 60 or pay in voluntarily for any years where there was a shortfall) Didn't you get 5 years added onto the 39 automatically at 60 irrespective of any contributions from then until you were 65 as these then went into the general pot ?