Savings vs pension

[Elpenor]

maybe - some employers offer the choice, but i'm struggling to think of any circumstances where a DC is going to be better. definitely get independent advice (not someone who wants to make money by getting you in to their scheme)

There are fringe reasons where you’d want to cash out a DB pot. Low life expectancy is one, especially if your pension pot is big. Probably also of use for unmarried / non CP couples. Insolvency of company?

It’s one of those things which depends on the individual circumstances and the scheme rules, and I suspect it’s also more relevant for those with very large pension pots.

 

[Puddy_Tat]

There are fringe reasons where you’d want to cash out a DB pot. Low life expectancy is one, especially if your pension pot is big

yes, suppose so. although again worth seeing what rules existing scheme has. local government scheme will pay pension / lump sum at age 55, and you can apply for it younger in the event of ill health retirement.

Insolvency of company?

that's a thought - although think there is some sort of government protection scheme (post maxwell / mirror group) - don't know the detail of this though

 

[Riklet]

I doubt that would apply to me, I'm ridiculously overpaid. I do need to see what my employer contributions might match though.

get a financial advisor. also worth looking it up yourself and not assuming anything first. well paid people are some of the main beneficieries of the whole pension thing (wrongly ofc, but thats how it is)

you should read this too

number one thing to do is to start paying more than the minimum so your employer matches it etc. and if you are earning ok get a private pension too.

 

[Puddy_Tat]

number one thing to do is to start paying more than the minimum so your employer matches it etc. and if you are earning ok get a private pension too.

yes, although employers will usually only match contributions up to x percent of salary in a defined contribution scheme. think at my last place you could contribute anything from 1 % upwards, but employer contributions would only go up to 4 %

 

[Elpenor]

that's a thought - although think there is some sort of government protection scheme (post maxwell / mirror group) - don't know the detail of this though

I think the government protection is capped at 90% if you’re not yet at pension age. 10% of a very large pot is a lot of money.

 

[pseudonarcissus]

They're useless, our contributions have been wrong for the last two years . I'll check the website. Thanks!

Have a poke around on the website. Some default portions will be very conservative in terms of the shares/bonds mix, and the expenses ratio is a big difference…there is zero evidence an expensive actively managed fun will out perform a low-cost tracker. Most websites should offer a mix of funds, and it’s not rocket science

 

[urbanspaceman]

After a bit of research i went for a sipp pension with hargreaves lansdown. Not convinced my research was spot on but happy with it so far. Just need to put more money in!

Its value dropped lots this week probably due to war.

So did I

 

[urbanspaceman]

Here's a general observation on where to put your money. Over the long run (5-10 years+), equities are the best bet. And the inevitable volatility can be minimised through geographical diversification. Just because we live in the UK, doesn't mean we need restrict ourselves to UK equities. In fact that's a bad idea, given that the UK accounts for only 5% of world stock market capitalisation (see attachment, which triggered this post).

I favour the Vanguard All-World ETF (VWRL), which has the attractions of maximal diversification (3,800 companies in dozens of countries), low fees, and a respectable and solid fund manager. As it's a "passive" index tracker, you don't have to worry about overconfident fund managers meddling with your money, betting on their (typically faulty) hunches. You just accumulate VWRL, ignore transient fluctuations, and leave it be until retirement.

Vanguard Asset Management | Personal Investing in the UK | Vanguard UK Investor

www.vanguardinvestor.co.uk

 

[Sasaferrato]

Did a bit of both saving and paying into a pension.

The savings have eroded, but the pension pays every month. (I actually have four pensions in payment, none are that big, but collectively keep us going.).

Much to my regret, I have an eight year 'hole'. I didn't join the pension scheme when I went to work for Sky, as I wasn't going to be there long, turned out to be eight years.

 

[Puddy_Tat]

(oops, was trying to delete draft)