Pension stuff, how's it all looking ? HAve you prepared ?

[Potter]

I do believe we all have a common interest though, we all want our investments to grow every year.

Well, right now, today, a perfectly safe option is to put it into a guaranteed investment like the NS&I 6.2% bond.

If you started with the million quid limit and could choose that option year upon year, then you can afford a draw down of £62k a year and you won't run out of money.
Other more complicated options are available.

You can build a fairly simple spreadsheet to model a starting amount against all scenarios over time, because that option very probably won't always be there for the rest of your life.

[Dodgy69]

Can you transfer a personal pension into one of these ns&I without being taxed on it. ?? My current PP obviously offers 25%TF and the rest being taxable. So, if I withdraw it, I'd be taxed big time and wouldn't be worth it.

Withdrawing the 25% would be straightforward but cuts the returns a lot. ??

Still 13k down at True Potential and don't see anything changing soon.

https://www.nsandi.com/guaranteed-returns

[Count Steer]

Can you transfer a personal pension into one of these ns&I without being taxed on it. ?? My current PP obviously offers 25%TF and the rest being taxable. So, if I withdraw it, I'd be taxed big time and wouldn't be worth it.

Withdrawing the 25% would be straightforward but cuts the returns a lot. ??

Still 13k down at True Potential and don't see anything changing soon.

https://www.nsandi.com/guaranteed-returns

Don't think so. I don't think you can even hold fixed rate bonds inside SIPP, only bonds that are quoted on the Stock Exchange...bit of a minefield, you can hold some NS&I products - 'permitted investments' and even, some say, Premium Bonds (Others say not). It's getting into expert advisor territory though.

On the bright side, if your funds are reinvesting dividends, you'll see things perk up more when/if the markets pick up. I don't know what £13k is as a % but, tbh, everything is looking a bit Patience is a virtue.

[Mr. Dazzle]

I can buy fixed bonds in my SIPP....I was looking just t'other day. Big long list varying from 25 year government ones at a couple of percent up/down (depends on your attitude ) to 1 year corporate ones at nearly 7%.

Can also buy ETFs of bonds...I.e. shares in a fund made up entirely of bonds, but all taken care of by someone else. Classic less risk but need to pay a management fee instead.

Deffo worth getting pro advice on that one! You're by no means guaranteed to get your money back on the higher rate ones. In fact if you buy them in my SIPP you have to complete a "do you really understand?" quiz first.

Might also be different for me cause I'm still in the 100% paying in mode.

[Dodgy69]

Can you transfer a personal pension into one of these ns&I without being taxed on it. ?? My current PP obviously offers 25%TF and the rest being taxable. So, if I withdraw it, I'd be taxed big time and wouldn't be worth it.

Withdrawing the 25% would be straightforward but cuts the returns a lot. ??

Still 13k down at True Potential and don't see anything changing soon.

https://www.nsandi.com/guaranteed-returns

Don't think so. I don't think you can even hold fixed rate bonds inside SIPP, only bonds that are quoted on the Stock Exchange...bit of a minefield, you can hold some NS&I products - 'permitted investments' and even, some say, Premium Bonds (Others say not). It's getting into expert advisor territory though.

On the bright side, if your funds are reinvesting dividends, you'll see things perk up more when/if the markets pick up. I don't know what £13k is as a % but, tbh, everything is looking a bit Patience is a virtue.

-4.3% I've had 10k out tax free and that crystallises 40k.

[Mr. Dazzle]

Don't forget you're also liable for tax on the profit from these NS&I bonds so that needs considering too.

Probably liable. Depends on what else you do and how much you make.

Really not the place to be asking

[Count Steer]

Can you transfer a personal pension into one of these ns&I without being taxed on it. ?? My current PP obviously offers 25%TF and the rest being taxable. So, if I withdraw it, I'd be taxed big time and wouldn't be worth it.

Withdrawing the 25% would be straightforward but cuts the returns a lot. ??

Still 13k down at True Potential and don't see anything changing soon.

https://www.nsandi.com/guaranteed-returns

Don't think so. I don't think you can even hold fixed rate bonds inside SIPP, only bonds that are quoted on the Stock Exchange...bit of a minefield, you can hold some NS&I products - 'permitted investments' and even, some say, Premium Bonds (Others say not). It's getting into expert advisor territory though.

On the bright side, if your funds are reinvesting dividends, you'll see things perk up more when/if the markets pick up. I don't know what £13k is as a % but, tbh, everything is looking a bit Patience is a virtue.

-4.3% I've had 10k out tax free and that crystallises 40k.

-4.3%? I'd say you're riding things out pretty well. Me and Hoss probably have nice dreams about -4.3%. At one point Truss-onomics had a slab of mine down 25%, (but fortunately that's only part of it and I don't have to draw down on it so it can stay in 'rest and recuperation' mode). At -4.3% I'd say your guys are doing OK!

[Horse]

-4.3%? I'd say you're riding things out pretty well. Me and Hoss probably have nice dreams about -4.3%. At one point Truss-onomics had a slab of mine down 25%

I can't remember exact figures, but one of the smaller pots shrank from near £12k to £8+

Similar in the others.

[Count Steer]

For those that don't get fatigued by more than a short paragraph, this article gives a perspective on pot size, draw down rates (4% rule) and why retiring during a market low and drawing down is a Bad Thing.

https://www.fidelity.co.uk/markets-insi ... V5Tu783npr

[Horse]

-4.3%? I'd say you're riding things out pretty well. Me and Hoss probably have nice dreams about -4.3%. At one point Truss-onomics had a slab of mine down 25%

I can't remember exact figures, but one of the smaller pots shrank from near £12k to £8+

Similar in the others.

New statement: it's fallen 10% ...

[Pirahna]

Non of my stuff has lost, for the last financial year the range of growth is spead between 2.12% and 7.35% depending on the investment. I use a management company to look after things for me, they're not cheap but well worth it.

[Potter]

I've got a pot down 14%.

In fact the only thing that isn't down, compared to what I put in, is fixed interest accounts/bonds - but they're really down due to inflation as well.

[Scotsrich]

I've lost 2% over the last year which isn't the end of the world but a long way from what the IFA was promising.

But there again that's their job to sell on the expectation.

I'd take the lot out and stick it into a decent savings account but with it being a pension account I fear I'd get stiffed for tax.

[Count Steer]

For those that are still taking an interest, this article discusses how much you need in the pot for a hypothetical 'comfortable' retirement. What the effect of inflation and account charges are etc etc. The numbers might come as a shock to some.

https://www.fidelity.co.uk/markets-insi ... nAj_OezAHu

[weeksy]

For those that are still taking an interest, this article discusses how much you need in the pot for a hypothetical 'comfortable' retirement. What the effect of inflation and account charges are etc etc. The numbers might come as a shock to some.

https://www.fidelity.co.uk/markets-insi ... nAj_OezAHu

£43,000 a year without a mortgage ? That seems wildly high to me ?

[Count Steer]

For those that are still taking an interest, this article discusses how much you need in the pot for a hypothetical 'comfortable' retirement. What the effect of inflation and account charges are etc etc. The numbers might come as a shock to some.

https://www.fidelity.co.uk/markets-insi ... nAj_OezAHu

£43,000 a year without a mortgage ? That seems wildly high to me ?

Well, it's before tax and they do say it's above the actual average. It also focuses on 'an individual' rather than a couple. Obvs people have different needs but if you start allocating chunks of the after tax figure for Council Tax, utilities, car tax/maintenance (on 2 cars in the example) it soon gets eaten into. It does feel a bit like they're talking about a couple with one pot though - with the reference to 2 cars. The main interest for me was the size of the pot for a given income and the impact of inflation and account charges.

[Potter]

£43,000 a year without a mortgage ? That seems wildly high to me ?

Not having a mortgage isn't actually the life changing event that most think it will be.

Your pension meeting your needs obviously depends what you want to do, IMHO if you've been earning £50-75k (or more) a year normally then realistically £40-50k is probably a sensible amount for a couple who want to enjoy an interesting holiday every year and a decent life in between for the first decade of retirement, then you'll probably slow down a bit.

[Count Steer]

£43,000 a year without a mortgage ? That seems wildly high to me ?

Not having a mortgage isn't actually the life changing event that most think it will be.

Your pension meeting your needs obviously depends what you want to do, IMHO if you've been earning £50-75k (or more) a year normally then realistically £40-50k is probably a sensible amount for a couple who want to enjoy an interesting holiday every year and a decent life in between for the first decade of retirement, then you'll probably slow down a bit.

It's a good point. Years ago I 'got someone in' to talk through this stuff and she said something like 'If you don't want it to be a shock and a complete change of lifestyle aim for something that will give you 2/3 of your current income on retirement then taper down over 10 to 15 years'.

TBH the first thing I noticed was how much it had been costing me to go to work. (I was fortunate in that a lot of the time my 'commuting' costs were paid but anyone that eg has to buy a season ticket or lives a distance from work and is constantly filling the car will notice the difference. They didn't pay for the suits etc or the people you have to pay because you don't have the time to do stuff though ).

[weeksy]

Work is the least of my costs, the £1000+ a month on racing, that stings more

[Count Steer]

Work is the least of my costs, the £1000+ a month on racing, that stings more

WFH has changed things a fair bit for a lot of people. In an ideal world people would bank the savings but human nature doesn't work like that.

Anyways I reckon you get the £1k/month worth of pleasure out of it all really.

To anyone starting out at the beginning of the work cycle my key bit of advice would be 'marry well'. I'm still stinging a bit from when my missus joined the company I was with - only stayed a couple of years - but they thought she was worth a slab more ££s than me Don't feel so bad about it now.