Pension funding?

[goosegreen]

Re: Pension funding?

I worked out that if I live to 75 I would receive 3/4 of my pension fund and my thoughts were: 75{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} while alive is better than 100{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} When dead. Although I still have the mortgage I have been able to help my kids to get a start, Pay off all other debts and cancel the credit card.

Goose

[iadom]

Re: Pension funding?

Its interesting how times change, as I mentioned earlier, I took out my first endowment policy at the tender age of 19, at the time I was working full time on a local farm, fantastic job which I loved but the pay was poor, around £10.00 per week at the time.

The premium was around £5.00 per quarter, a lot of money given the wages I was on.

I now pay it once a year by direct debit. It matures when I am 65 ( coming up fast) .

At approx £20.00 per annum over 46 years that will have cost me just over £900.00. The last time I requested a cash surrender value was in July 2003, at the time it was valued at £4788.00 8)

Compare that with the appalling performance of endowments over the past ten years or so. 😥

Jim.

[Martin]

Re: Pension funding?

Todays best performers for investment is without doubt ‘Fixed Rate Cash ISA’s’. The rate is linked to the Bank of Englands base rate so you can be sure your money grows year on year. 😀

Pension funds cannot match that and the money invested is yours to access and do with what you want, when you want and at any time! 😉

[Alex]

Re: Pension funding?

Here’s a tip.

If your business is incorporated (Ltd), take out a company pension. The company, being your limited company pays the contibution as your employer, personally you pay nothing. You need to be on payroll yopurself, doesn’t matter if you only pay yourself a wage of £106 p.w. to keep below PAYE. The business gets tax relief and saves on the year end corporation tax, and you get a small pension that you have not really contributed towards. Make it flexible and you can increase as and when you feel fit. Of course you could add to it in your own right as well.

My company is very generously paying me a pension in this manner, as well as my wife’s, who is also on the payroll.

Alex

[Author]

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