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Pension advice 
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Post Pension advice
My company are changing us from a Defined Benefit pension to a Defined Contribution scheme.

Anybody know what the hell that means? If you do know any advice would be greatly appreciated.

ta.

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Wed Jan 10, 2018 8:01 pm
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Post Re: Pension advice
It means don't grow old

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Wed Jan 10, 2018 8:08 pm
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Post Re: Pension advice
Have a look at this Fids
https://www.google.co.uk/url?sa=t&rct=j ... rTdVzg9xnJ

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Wed Jan 10, 2018 9:13 pm
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Post Re: Pension advice
It means it's going from what was promised to what you have actually contributed.


Wed Jan 10, 2018 9:23 pm
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Post Re: Pension advice
Essentially, it means once your pubes start going grey, you'll have to beg in the street like a dog.
Get yourself a can of Special Brew, and sit outside Bewise, explaining at great length to passing women how horny they make you feel.

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Wed Jan 10, 2018 9:29 pm
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Post Re: Pension advice
LLanrumneyOik wrote:
It means it's going from what was promised to what you have actually contributed.

Fundamentally that's about right.

Spend a few hundred quid and get independent advice (not the advisors that your company point you to), because you'll be offered (probably encouraged) to change it all over to the new scheme, but you don't have to, you can keep what's accrued on the current scheme, in the current scheme

Depends on many factors, and indeed what you want from your pension, but generally speaking your pot will be smaller, but there are some advantages

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Wed Jan 10, 2018 9:35 pm
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Post Re: Pension advice
Thegrimriper wrote:


Cheers, I've read up on both and seeing as my Army Pension will be my main source of income my initial reaction is to go with the new scheme (the Defined Contribution) and leak out the 25% tax free payments every year or so, might pay for a holiday at least and will keep me below any scunner like tax thresholds which having another regular payment might push me over

will seek proper advice but at least I can see where this is going

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Thu Jan 11, 2018 3:02 pm
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Post Re: Pension advice
Fids the Blindside wrote:
Thegrimriper wrote:


Cheers, I've read up on both and seeing as my Army Pension will be my main source of income my initial reaction is to go with the new scheme (the Defined Contribution) and leak out the 25% tax free payments every year or so, might pay for a holiday at least and will keep me below any scunner like tax thresholds which having another regular payment might push me over

will seek proper advice but at least I can see where this is going



Don't take this as advice, but remember your spending will be front loaded. You wil spend and need more closest to retirement as you go on less holls and outings as you get older. I recently had the option to take a rise now or a better interest rate link later, I took the lump now to get the benefit from it. Right or wrong, it is what I felt. When I get to 90 I can not see me driving or going abroad half as much. Ther is also the knowledge the money is in my bank not theirs if they should change the rules again

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Thu Jan 11, 2018 3:51 pm
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Post Re: Pension advice
soap wrote:
Fids the Blindside wrote:
Thegrimriper wrote:


Cheers, I've read up on both and seeing as my Army Pension will be my main source of income my initial reaction is to go with the new scheme (the Defined Contribution) and leak out the 25% tax free payments every year or so, might pay for a holiday at least and will keep me below any scunner like tax thresholds which having another regular payment might push me over

will seek proper advice but at least I can see where this is going



Don't take this as advice, but remember your spending will be front loaded. You wil spend and need more closest to retirement as you go on less holls and outings as you get older. I recently had the option to take a rise now or a better interest rate link later, I took the lump now to get the benefit from it. Right or wrong, it is what I felt. When I get to 90 I can not see me driving or going abroad half as much. Ther is also the knowledge the money is in my bank not theirs if they should change the rules again


At that point they take your bank account away from you. ;)

It is hard to generalize as everyone's personal circumstances, (kids/no kids, health, single/divorced), are different.
In the US at least it is very clear that the Government expects people to pay for their own retirement and health care increasingly. In defined plans, be sure to read all the fine print, and review investment options and expenses. Is there any match, is it like Enron in that the match comes in company stock...etc?

The only reason I became a dual citizen was to safeguard my US social security payments. I figure I need somewhere between 75 and 80% of current income to live on in retirement...it isn't cheap.

Incidentally, the highest age group for bankruptcy in the US is the 80-85 age group, as the Government really will not help.

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Sat Jan 13, 2018 6:03 pm
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Post Re: Pension advice
Really?

Show me where you picked up that snippet of information on elderly Bankrupts in the US and I'll tell you where to find some information from a Business School here that you might find interesting. It's very different here of course.

Cheers.


Sun Jan 14, 2018 8:21 am
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Post Re: Pension advice
Fids the Blindside wrote:
Thegrimriper wrote:


Cheers, I've read up on both and seeing as my Army Pension will be my main source of income my initial reaction is to go with the new scheme (the Defined Contribution) and leak out the 25% tax free payments every year or so, might pay for a holiday at least and will keep me below any scunner like tax thresholds which having another regular payment might push me over

will seek proper advice but at least I can see where this is going

I think your thinking is on the right track Finds.

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Sun Jan 14, 2018 11:49 am
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Post Re: Pension advice
Bouch wrote:
Really?

Show me where you picked up that snippet of information on elderly Bankrupts in the US and I'll tell you where to find some information from a Business School here that you might find interesting. It's very different here of course.

Cheers.

It was at a Pension Seminar given by Calpers, the largest Pension Fund in the world...I have no idea why they would make it up...it is a % figure not absolute amount...

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Mon Jan 15, 2018 12:59 am
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Post Re: Pension advice
but always remember this the change is to benefit you boss not you.

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Mon Jan 15, 2018 8:50 am
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