[Archived] Personal Pensions

[JAL]

Got to ask members of this board with the current global financial situation has the future government policy of getting everyone to contribute to their own pension provisions has it been blown apart with whats going on in the financial markets.

With all the borrowing being thrown in to fix the problem currently and businesses going to the wall with alarming regularity and the fact that this borrowing will have to be paid back in future years probably through increased taxes of some kind can the City of London sustain returns on investments to give everyone a fruitful retirement or is it dead ?

[1864roverite]

it doesnt matter about the markets put some money away NOW because your gonna need it in the future.

[Sydney Rovers]

it doesnt matter about the markets put some money away NOW because your gonna need it in the future.

Exactly, if you think you're going to get a pension from the Government when you retire especially for anyone who's under the age of 40 now, you'll be sadly disappointed.

[Al]

We are in a stock market dip at the moment but it is a fact that over a 10 year period the stock market always beats any other form of savings for returns. If you are under 50 now is probably an excellent time to invest, either through a pension scheme or Maxi isas, both of which are tax efficient.

I am now retired and even though, on paper, I have recently lost a fair amount of money, I am still fairly comfortable and still sitting on at least treble the amount of my original investments. Also with Isas you have not in fact lost anything until you sell them.

Get saving and enjoy your retirement.

[JAL]

We are in a stock market dip at the moment but it is a fact that over a 10 year period the stock market always beats any other form of savings for returns. If you are under 50 now is probably an excellent time to invest, either through a pension scheme or Maxi isas, both of which are tax efficient.

I am now retired and even though, on paper, I have recently lost a fair amount of money, I am still fairly comfortable and still sitting on at least treble the amount of my original investments. Also with Isas you have not in fact lost anything until you sell them.

Get saving and enjoy your retirement.

But Al this time the experience is going to be TOTALLY DIFFERENT to anything we've ever experienced before. Businesses are going to go to the wall at an alarming rate, unemployement is going to spiral, insolvency is going to increase money is going to be tight yet the fund managers are still going to increase their annual charges to manage your account when the returns on your investments are going to be slimmer from the greed fuelled City of London.

Then there the increase in taxes, the threat of more wars, is it really going to be wise to throw good money into the financial institutions as the western world adjust its financial clock yet the people in it wont reduce their pay or bonuses.

[dave birch]

But Al this time the experience is going to be TOTALLY DIFFERENT to anything we've ever experienced before. Businesses are going to go to the wall at an alarming rate, unemployement is going to spiral, insolvency is going to increase money is going to be tight yet the fund managers are still going to increase their annual charges to manage your account when the returns on your investments are going to be slimmer from the greed fuelled City of London.

Then there the increase in taxes, the threat of more wars, is it really going to be wise to throw good money into the financial institutions as the western world adjust its financial clock yet the people in it wont reduce their pay or bonuses.

JAL, I don't know how old you are, but how do you know that this experience is going to be any different. If you have knowledge of this certainty, then I'd say you were in a position to make a huge killing on the market.

All Al is saying is, save for your future, be it in a bank account or through the market, or even property. Over time, the market has proven to be the best investment, but there are moments in time where things go in reverse.

You need to provide an income stream for when you retire. You can do that through cash (earning interest to pay yourself) Shares (to pay you dividends), property,( to pay you rents from the property(ies)) or an ongoing business where you have a manager (or yourself) running the business and paying you the profits.

Ideally, you would have a mix of all to lessen the impact of any down turn in a particular sector.

[Hughesy]

My plan is to not need a Pension by the time I hit that age. Im only 24, so by the time I get close to the 'normal' retirment age, it will of probably gone up to about 75 anyway. My plan is to have enough money by then anyway to not need a pension.

[dave birch]

My plan is to not need a Pension by the time I hit that age. Im only 24, so by the time I get close to the 'normal' retirment age, it will of probably gone up to about 75 anyway. My plan is to have enough money by then anyway to not need a pension.

Indeed, Hughesy, that's the way you should be approaching it.

It's a matter of "spreading your bets" to achieve that aim.

[Al]

But Al this time the experience is going to be TOTALLY DIFFERENT to anything we've ever experienced before. Businesses are going to go to the wall at an alarming rate, unemployement is going to spiral, insolvency is going to increase money is going to be tight yet the fund managers are still going to increase their annual charges to manage your account when the returns on your investments are going to be slimmer from the greed fuelled City of London.

Then there the increase in taxes, the threat of more wars, is it really going to be wise to throw good money into the financial institutions as the western world adjust its financial clock yet the people in it wont reduce their pay or bonuses.

What makes you think that the current crisis is any different to the many dips we have had before? Are you old enough to remember the 3 day week?

The markets recovered from that and will recover again. When the market is low is the time to invest. The trick is to judge when it is at it's lowest (almost impossible but it is not impossible to get close to it.)

A few years ago the FTSE 100 was at 6700 and then it went down to 3400. It recovered to 6400 but never got back to its previous highs. In that time my Isas doubled in value.

Hughesey, If you want to have enough money not to need a pension you need to be investing now but I would recommend a combination of investments, pensions and cash savings. In other words spread it around to cover all eventualities. It's really hard to keep up with inflation with cash alone. Unless of course you are earning a huge amount at the moment in which case it doesn't matter a lot what the official retirement age is, you can retire when you feel you have enough.

[JAL]

JAL, I don't know how old you are, but how do you know that this experience is going to be any different. If you have knowledge of this certainty, then I'd say you were in a position to make a huge killing on the market.

All Al is saying is, save for your future, be it in a bank account or through the market, or even property. Over time, the market has proven to be the best investment, but there are moments in time where things go in reverse.

You need to provide an income stream for when you retire. You can do that through cash (earning interest to pay yourself) Shares (to pay you dividends), property,( to pay you rents from the property(ies)) or an ongoing business where you have a manager (or yourself) running the business and paying you the profits.

Ideally, you would have a mix of all to lessen the impact of any down turn in a particular sector.

Is it not that every sector has or is being affected on a wider more far reaching global basis.

What I see in AL's comments are fair enough based on previous experience of the financial markets but is this not a totally different period we are entering were quite possibly the value of money could be or end up as nothing.

The government are doing their best in maintaining everything especially confidence but as people fall financially one by one what will we be left with can there be a pensionable return in say twenty years time. As pension funds fail to grow yet the people who manage them continue to add their annual increments to their part in managing a pension fund were does it all end - is it worth it ?.

[dave birch]

Is it not that every sector has or is being affected on a wider more far reaching global basis.

What I see in AL's comments are fair enough based on previous experience of the financial markets but is this not a totally different period we are entering were quite possibly the value of money could be or end up as nothing.

The government are doing their best in maintaining everything especially confidence but as people fall financially one by one what will we be left with can there be a pensionable return in say twenty years time. As pension funds fail to grow yet the people who manage them continue to add their annual increments to their part in managing a pension fund were does it all end - is it worth it ?.

JAL, for my investments, not all have been adversly affected , some have actually increased markedly.

As Al stated, you only lose when you sell, if your investments are giving you a return, where's the problem?

People will always value things, they will need a means of transferring that value, at the moment that transfer is done with cash/precious metals/gems etc.

All I can add is, create yourself an income stream