Have a good giggle!
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Have a good giggle!
Am with the world's favourite airline and am a member of the defined contribution pension scheme known as BARP. Just received my 1st pension statement/forecast. WOW - based on 15 more yrs service they suggest I will 'BENEFIT' by receiving per annum, on retirement, the grand sum of 4490 pounds, based on middle investment return. I am not posting this for sympathy - merely to generate some comment/reaction - particularly from those NAPS members who feel they might be hard done by future pension provision by the company.
PS I hope recent CC elections brought about some wholesale change!!!!!!!!!!!!!!!
PS I hope recent CC elections brought about some wholesale change!!!!!!!!!!!!!!!
You invest X. Average earnings on investment are Y. Years before retirement are Z.
Simple maths to work out how much it is going to be worth. If it's not enough, invest more!!!
The days of companies continuing to pay you after you no longer work for them are long gone. YOU,will have what YOU put away.
That's how the world works.
Simple maths to work out how much it is going to be worth. If it's not enough, invest more!!!
The days of companies continuing to pay you after you no longer work for them are long gone. YOU,will have what YOU put away.
That's how the world works.
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What????? So are you suggesting that the employer need not contribute? Have I misinterpretted your post - apologies if so.............I've got no problem with contributing more as long as employer is putting a sensible (market leading !!!) amount in too.
Warning Toxic!
Disgusted of Tunbridge
Disgusted of Tunbridge
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You start ploughing all you can into the fund. You benefit by max rate tax relief on your contributions, so they are nowhere near as bad as the apparent cost to you. In the meantime, stand united with your colleagues and fight for their pension rights, because they will fight to improve yours too. It's one of the best investments you could make, so keep that money flowing in all you can afford. The previous 15% limit has been removed. There is no more you can do for now. But max in as early as possible is the best strategy.
These days whether the employer contributes to a pension fund, or simply gives you the money and lets you do your own investing makes little difference.
There might be certain tax advantages to one or the other, but the point I'm making is that if your projected retirement income is inadequate, the only person who can do something about it is you.
The days of "Work for us for life and we'll pay you for the rest of your life" are over. It was based on investment returns and tax advantages that just don't exist any more.
Actually, I prefer cash purchase. At least I know that what's in my hot little hand is mine and that's that.
Ask the retirrees from United what happens when you have a company pension, and then the company goes south!!
There might be certain tax advantages to one or the other, but the point I'm making is that if your projected retirement income is inadequate, the only person who can do something about it is you.
The days of "Work for us for life and we'll pay you for the rest of your life" are over. It was based on investment returns and tax advantages that just don't exist any more.
Actually, I prefer cash purchase. At least I know that what's in my hot little hand is mine and that's that.
Ask the retirrees from United what happens when you have a company pension, and then the company goes south!!
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an interesting one i've heard and a lot of new joiners in barp are hearing is that the NAPS memebrs, BACC or balpa in general (nt sure which one) 'sold us out' by voting for reducing barp or changes in barp a few yrs back. Its got a few of us scratching our heads when they start talking about unity for possible striking?
heard it from the FD version of 'galley FM' whatever thts called, and I am prepared to be told I am completely wrong, i'm just curious.
d2k
heard it from the FD version of 'galley FM' whatever thts called, and I am prepared to be told I am completely wrong, i'm just curious.
d2k
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Yep throw more money into the fund. Give it to an anonymous fund manager who is apparently smarter than all of us who will invest it in a mix of equities and debt that you haven't a clue about. In good years you make a return and he makes more, in bad years he takes his fees and dilutes your capital and then has the audacity to write to you telling you that you need to top up your fund due to adverse outside market forces. Keep doing this for years in the hope that one day there will be something waiting for you on your retirement. By this stage the retirement age will be 80 years and any cash that has been saved will be the subject of various exclusions or adverse tax so it won't be anything like what you signed up to back in year 1.
What sort of return are they getting these days anyway? 5-10% in a good year, 0% or worse in a bad one?? Putting your cash on deposit with someone like ING will give you 4% flat. Alternatively buy rental properties and let someone else pay your mortgage and deduct some tax along the way. Then cash in the property when you want to retire.
But giving your hard earned to someone to invest on your behalf - that ain't for me.
What sort of return are they getting these days anyway? 5-10% in a good year, 0% or worse in a bad one?? Putting your cash on deposit with someone like ING will give you 4% flat. Alternatively buy rental properties and let someone else pay your mortgage and deduct some tax along the way. Then cash in the property when you want to retire.
But giving your hard earned to someone to invest on your behalf - that ain't for me.
