Honda-SOHC
Other Stuff => Misc / Open => Topic started by: DomP on August 12, 2024, 12:41:34 PM
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I there anyone on here knowledgeable on pensions, I'm embarrassed to admit that for several reasons I don't have a pension plan but really want to get one sorted.
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It depends on your employment status, if you are self employed or a company director you need to go to an independent financial advisor - not a bank or directly to a pension provider for the best advice.
If you are employed you should be auto enroled into a works pension scheme, its a complex area.
.https://www.thepensionsregulator.gov.uk/en/employers/managing-a-scheme/contributions-and-funding#:~:text=The%20minimum%20contributions%20that%20you,on%20a%20percentage%20of%20earnings.
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Thanks Ted, I'm self employed so a financial advisor it is then.
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It depends on your personal circumstances so a financial advisor makes sense.
The following link might be useful
https://www.vouchedfor.co.uk/?utm_source=google&utm_medium=cpc&utm_content=28011613635&utm_term=vouched%20for%20financial%20advisers&utmgsource=AS_AdWords&utmgmedium=cpc&utmgvertical=Brand&campaignid=350359515&keyword=vouched%20for%20financial%20advisers&matchtype=e&adposition=&device=m&devicemodel=&network=g&gclid=CjwKCAiA2rOeBhAsEiwA2Pl7Qzzio7ktgY6aR-BOh4bk2CA5BsR62DKH_Uo_P_tD9RFNSiPS4qcoixoCYLIQAvD_BwE
A SIPP might be worth investigating AJ Bell have some good info on their site.
Sent from my iPhone using Tapatalk
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Much appreciated folks, I'll look into it a bit further over the few days and see if anyone close to me can recommend a financial adviser.
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I'm all for adding more honda motorcycles to your portfolio!
Great investments . Plus you can't ride money in the Bank!
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Bought a Private Personal Pension (I'm self-employed) in 1996 on the recommendation from a Pension advisor...Equitable Life Insurance Co...I wont be retiring early with this plan...lol
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I'm all for adding more honda motorcycles to your portfolio!
Great investments . Plus you can't ride money in the Bank!
My mate did that with the tax free commutation from his pension - not sure how long he will need to live to cash in on any benefit.
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I'm all for adding more honda motorcycles to your portfolio!
Great investments . Plus you can't ride money in the Bank!
My mate did that with the tax free commutation from his pension - not sure how long he will need to live to cash in on any benefit.
Every time you go for a ride you are enjoying the benefits!
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Some if these pension selling experts were probably the same experts who previously sold cast iron guaranteed endowment mortgages back in the day! I ended up with three of those and every single one failed to pay the loan amount with two of them losing me thousands that I had to find to pay off my mortgage. I remember back in 1984 being forced to take one of these scamming endowments out to cover a mortgage of £27k. I was told it would pay out £45k after the 25 year term. It eventually paid out £17k and lost £5k of the money I'd invested into it! I joined the miss selling claims and it was thrown out because they said I should have acted sooner despite me writing letters after five years asking why it wasn't performing. Crooks.
Look after and invest your own money, you'll keep it and have ultimate control over it instead of paying a city slicker a bonus to buy a Porsche at your expense!
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Low cost endowment policies were promoted vary hard back in the early 1980's especially by the Banks and Building Societies, as an incentive the staff received bonuses if they sold the low cost endowment policies.
When we moved house in 1984 we stayed with the Halifax for our mortgage, when we went in to sign the new documents they had drawn up endowment documentation. I was not convinced about the benefits they claimed I would receive. It just seemed too good to be true plus it was a little rigid in some aspects.
The Mortgage adviser rudely stormed out of the office as she had to produce new documents for us to sign for a normal mortgage repayment contract. Whilst out of the room my wife asked me if I was sure we were making the right choice.
I said we were as we could pay more off more sooner with a normal repayment mortgage by either increasing the payments or not taking a fall in payments. As interest rates rose during the Thatcher years we managed okay so when the interest rates dropped we stayed on the slightly higher payments. We paid off our 27 year mortgage almost three years early.
I know many folk were caught out by the scandal leaving them with a mortgage after retirement or having to work longer.
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Agree Ted! We were also being encouraged to take out an endowment mortgage but at the time financial restraints meant we could not afford it, so stuck with repayment mortgage. I’m not sure if anyone received the rewards of the endowment mortgage that they were led to believe they should. I know a lot of people didn’t even have enough to pay off their mortgage let alone the lump sum of money at the end of term. There’s definately a compensation claim for bad advice.
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I pissed off the bank when i refused mortage protection insurance, i was single and told them if i died they had the deeds anyway and i wouldnt be there to care!
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Coming back to the original post, pensions are a complex area both in terms of how best to save and also what to do when it comes to taking money out. Regulation in the financial services industry has moved on a huge amount since the eighties, so I would definitely say speak to a professional about this, even if it's just to learn from them and you ultimately make your own decisions.
Most firms will offer an initial hours discussion for free so that they can understand your requirements - and this should be no obligation - so book in with a few local companies and go and meet them and find someone you feel comfortable talking to. This will also give you a number of sessions to understand the industry jargon ( which they shouldn't use to much!), but don't ever feel concerned about getting them to explain things in plain English and until you understand it. Search for IFA's and pension advisers. You could also try some online ones...potentially cheaper but may feel more remote.
Look at fee structures too on their websites...some charge a %, which I feel is an ongoing charge against you, but some will charge a set fee to discuss, and set-up a financial plan and this feels, to me at least, a lot fairer.
Also, look at Government/ charity resources online beforehand - Citizens Advice has pension info to assist before you meet any advisers, so a good start point, so you hopefully understand a bit before you start talking.
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The Martin Lewis website at
https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.moneysavingexpert.com/pensions/&ved=2ahUKEwjDsNeYjPSHAxVRX0EAHc_gN34QFnoECCEQAQ&usg=AOvVaw1xFEVVfWHLgZg33czoORUT
Has some really good basic advice about seting up a private pension plan and it is explained in plain, simple english. Being Martin Lewis you know it's going to be factual and honest. Maybe worth an initial read to learn the basics before setting off to see a local providier.
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True in part I have read somewhere a while back that Martin Lewis no longer owns or runs the site he is described now as the founder - I believe he sold the website.
Might be fake news but sold for £87m...............https://www.bbc.co.uk/news/business-18295587
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Martin Lewis site (he did sell out) is a good place to start, but with all future investments there is no guarantee that your pension fund will perform well based upon past performance.
As previous post, I bought a self employed personal pension from the Equitable life Company based upon a 'Which' magazine recommendation in 1996...their assumption was if it performed well in the past, so it will do the same in the future???...over the next few years Equitable started to fail and was eventually broken up...it is still trading today as Utmost Life Assurance, I'm still contributing to this plan in the hope that it may recover?
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Encouraging reading chaps🤣
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A good friend of mine used the same Independent Fnancial Advisor (IFA) for over 50 years about 8 years ago he closed his business, he now works for a Pension Provider so not independent now.
The interesting part is why he closed his business - the reason was a combination of Insurance Costs against giving bad advice, the final nail in the coffin for the business was the constant changes in Government Regulations by the Financial Conduct Authority & the Prudent Regulation Authority . Each time the Regulations changed he had to go on a special course to learn and fully understand the changes that initiated - new products from Pension Providers - these courses are not free so as well as having to fund his ongoing training that was time away from his core business of giving truly independent advice.
The FCA & the PRA are making the role of IFA almost impossible to fill so not that many about plus the best advice is generally not free. This then drives customers to Banks or Pension Poviders who will give so called "free advice" that they cannot call independent.
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Sod it, I'll just enjoy myself until I drop🤣
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Sod it, I'll just enjoy myself until I drop🤣
The key to private pensions seems to be to start young as with each passing decade you leave it the more expensive it is to catch up to end up with a decent pension pot.
Nothing worse than having to rely on just a State Pension as my late parents discovered. At the very least consider paying into a shares ISA each year until you can decide or afford a private pension.
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You are incentivised through tax saving to save for your pension
https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief
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Sod it, I'll just enjoy myself until I drop🤣
The best thing to do is talk to at least 2, preferably 3, approved financial advisors. The government website gives general advice and has the list of approved advisors. Don’t go to any so-called advisor who is not listed.
Everybody has a different job history and financial situation. A good advisor will tell you the best course of action to take for your situation. You don’t pay tax on pension contributions so it's better to start ASAP for maximum future benefit.
After getting advice from 2 or 3 advisors you can decide which is best for you.