If it's for pension provision, much of that timing luxury is taken away.
Any investment that you need to draw down at a specific point is going to be a risk.
Hopefully interest rates stay sensible now and you can draw down and put it in something that might not return as much but be less risky.
That was why the general idea was to move towards Gilts as retirement approached. Gilts are nice stable little earners.
Then someone had the bright idea of outsourcing the Gilt stuff. And then along came Liz Truss.
[X] Yup. I'm in the lucky position of having partial final salary scheme and Filly still working until after I get the state pension.
Giving the 'savings' type a chance to recover.
LT was PM in '22, just ahead of me retiring in mid-23 ... So all of mine had been transferred to those 'safer' investments.
Potter wrote: Fri May 24, 2024 5:12 pm
Just got an email from Hargreaves Lansdown, with the following...
"Cash is king for the short term - If you need the money within the next five years – cash savings carry less risk. With competitive savings rates still around 5%, there’s opportunity for good returns..."
That's just a tad from an investment company!
I wonder if it means that I might claw back some of what Liz Truss owes me on my Blackrock Cash fund.....nice, safe, rock solid, low risk.....but not Truss/Kwarteng proof.
Potter wrote: Fri May 24, 2024 5:12 pm
Just got an email from Hargreaves Lansdown, with the following...
"Cash is king for the short term - If you need the money within the next five years – cash savings carry less risk. With competitive savings rates still around 5%, there’s opportunity for good returns..."
That's just a tad from an investment company!
They have a platform and you can access various accounts through them.
Cash at 5% is a nice safe place to be though for the next few years.
I was thinking that they make their money on dealing/transaction charges but if it's platform fee only I guess you can get 5% without them siphoning too much off. I don't think I pay platform fees because of a pension lump in there with mine. Wife's account charges seem higher than mine and she hasn't got a pension in there, just ISAs.
The 100 minus your age rule on the % to have in equities and the one about how many years it takes to double an amount based on an interest rate were quite interesting.
The 100 minus your age rule on the % to have in equities and the one about how many years it takes to double an amount based on an interest rate were quite interesting.
The 100 minus your age rule on the % to have in equities and the one about how many years it takes to double an amount based on an interest rate were quite interesting.
I have a couple of "Target retirement year XXX" funds, ones which automatically ramp between various equities, bonds etc.
Judging from the splits they currently have, the (supposed) experts who run them certainly don't believe in the 100 minus rule
According to the " ftadvisor " , less than half the folk eligible for the " new " state pension actually receive the full amount . I've never been out of work in my life and have 48 years of full NI contributions, but I don't receive anything like the full amount . That is partly to do with always contributing to decent company pensions , but also do with the NI rules changing in 2016 . It's complicated !
Treadeager wrote: Sun Jun 02, 2024 8:12 am
According to the " ftadvisor " , less than half the folk eligible for the " new " state pension actually receive the full amount . I've never been out of work in my life and have 48 years of full NI contributions, but I don't receive anything like the full amount . That is partly to do with always contributing to decent company pensions , but also do with the NI rules changing in 2016 . It's complicated !
Complicated? It certainly is! Mine seems reasonably straightforward but my missus's is a bit like yours and she deferred it for a year to bump it up. Now she gets a pension statement that's completely impenetrable AND it's impossible (to me or her) to see if she's getting the benefit of deferring. All I can see is that she gets a bit more than me so just assume she is. (Add in that the shift in women's pension age was compensated for by her company pension scheme to cover the gap and now they're wondering whether they paid too much...nightmare! ).
The 'opting out'/SERPS stuff just made everything too complicated. No wonder they don't want to have to start applying tax to their systems (or do means testing etc etc).
Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
weeksy wrote: Thu Jul 25, 2024 2:10 pm
Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
I'm pretty sure Mrs. G asked this when we went see our FI last year and was told the answer was no, that's not the case.
I can't recall why, as at that point the coffee and biscuits came in and I saw they had shortbread....
weeksy wrote: Thu Jul 25, 2024 2:10 pm
Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
I'm pretty sure Mrs. G asked this when we went see our FI last year and was told the answer was no, that's not the case.
I can't recall why, as at that point the coffee and biscuits came in and I saw they had shortbread....
MMmmm go find out big boy... you're one of our resident financial wizards.
weeksy wrote: Thu Jul 25, 2024 2:10 pm
Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
It may vary from pension to pension. One of mine let's me take cash out and 25% is tax free, rather than just a 25% tax free sum.
weeksy wrote: Thu Jul 25, 2024 2:10 pm
Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
You can pay more than £10k but you won't get tax relief on anything over £10k.
'If you take money out in this way, you may only be able to receive tax relief on up to £10,000 a year. If you exceed this figure, you may need to pay tax to HMRC. This is known as the money purchase annual allowance (MPAA).'
weeksy wrote: Thu Jul 25, 2024 2:10 pm
Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
You can pay more than £10k but you won't get tax relief on anything over £10k.
'If you take money out in this way, you may only be able to receive tax relief on up to £10,000 a year. If you exceed this figure, you may need to pay tax to HMRC. This is known as the money purchase annual allowance (MPAA).'
@weeksy
Yeah. That was sort of what I heard, in between the crunch and slurp of tea and biscuits.
weeksy wrote: Thu Jul 25, 2024 2:10 pm
Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
You can pay more than £10k but you won't get tax relief on anything over £10k.
'If you take money out in this way, you may only be able to receive tax relief on up to £10,000 a year. If you exceed this figure, you may need to pay tax to HMRC. This is known as the money purchase annual allowance (MPAA).'
And is that done manually by them or something you have to do as a self-assesment ?
weeksy wrote: Thu Jul 25, 2024 2:10 pm
Right there was one thing i wanted to ask/clear up.
"If you take out some/all of your 25% you can then only put £10,000 a year into your pension in the future"
Someone posted this on another pension discussion. This would be a bit of an issue for me potentially... but just need some clarification on it please ?
You can pay more than £10k but you won't get tax relief on anything over £10k.
'If you take money out in this way, you may only be able to receive tax relief on up to £10,000 a year. If you exceed this figure, you may need to pay tax to HMRC. This is known as the money purchase annual allowance (MPAA).'
And is that done manually by them or something you have to do as a self-assesment ?
Err. Dunno! That's getting a bit specialist. I'd ask your payroll/pension people that one to start with. Someone like Sillycar might have an idea on the mechanics of tax relief application etc.
from an investment company! 
).
