Financial literacy

[UKYankieWWFC]

It's worth mentioning that for people who've missed NI payments you can back date them so you get the full state pension. It's time bound now but worth checking, as the cost of topping up your NI contributions is less than what you'd get for state pension. Especially as the state pension will rise (for now) in line with the triple lock. It'll never be cheaper than it is today (due to inflation) to top up your NI contributions.

Something I also may need to look into as I've been away from the UK for 10 plus years

 

[sycophantia]

Am actually very Illiterate with financial planning. Was going to claim state pension from today (67th b-day), but didn't speak to anyone until 2 weeks ago. Don't qualify for full amount, waiting for info on how to top up (if possible). Called Aviva last week and on the spur of the moment decided to leave my small pot for 4 more years.
Only recently found out I qualify for US social security even though I haven't paid in. But haven't looked into pros/cons of pensions from 2 countries.
This thread is a good reminder to get up off my backside and speak with an expert. But Wolves play today, then busy for a few days, don't like paying people for advice, etc. Maybe next month.

Also I believe if you defer your state pension past your state retirement age, your pension increases.

 

[AndyWolves]

Something I also may need to look into as I've been away from the UK for 10 plus years

Do it mate, furthest you can go back now is 6 years, but it's essentially free money

 

[Dennisons Wrong Foot]

It's worth mentioning that for people who've missed NI payments you can back date them so you get the full state pension. It's time bound now but worth checking, as the cost of topping up your NI contributions is less than what you'd get for state pension. Especially as the state pension will rise (for now) in line with the triple lock. It'll never be cheaper than it is today (due to inflation) to top up your NI contributions.

I did enquire about topping up. Waiting for a reply.

 

[Dublin Drummer Wolf]

My uncle retired at 55 with 4 different pensions, and the best advice he ever gave me was to always open a pension wherever you work, as essentially its free money from your employer contributions.
I opened mine in 2018 and its set to medium risk and its doing well at the moment.
I dallied with investing in my company as I got discounted shares, sold them during Covid for a small profit but wouldn't bother again as the stockbroker is an American company and the forms needed for the IRS to show I was a non-US resident were a massive pain in the arse.
I have a joint savings acct with the wife and a small personal saver acct for my own rainy day fund that ive had since I was 24, few quid goes in via direct debit every week, you dont notice it but it adds up after a while.

 

[EpsomWolf]

Funnily enough one of the best bits of advice I ever had was someone saying once ‘whatever you do don’t put another penny into your private pension’. That wasn’t saying ‘do nothing’, more, ‘there are alternatives that need exploring’. That’s not a criticism of pension investments either, just that people’s circumstances are different and it’s important to think laterally.

Most important thing of course is to try and secure your future. That becomes a lot easier when you have options and begin to dabble, but how you secure your future when barely able to secure your present is the tough one.

I dunno, I still think a decent job in a fairly well-paid industry with solid pension contributions can provide a very comfortable outcome, but would encourage anyone else to think about self-employment and controlling their own destiny as fast as possible.

All that of course can change rapidly and will depend on the fortune of good health, stable relationships and your ability to steer the ship through choppy waters, but the earlier you get started the better you’re equipped to deal with that sort of stuff regardless.

 

[AndyWolves]

I think for the vast majority pensions are no brainers due to the tax advantages and employer match.

Self employed people still get the big tax advantages, and if you're a director in your own company you can reduce corporation tax by paying into your own pension.

 

[Deutsch Wolf]

I was self employed for 15 years.

If you absolutely love not getting paid on time and routinely getting stiffed because you're just one bloke and what are you going to do about it, then fill your boots.

 

[Haggstone]

I think for the vast majority pensions are no brainers due to the tax advantages and employer match.

Self employed people still get the big tax advantages, and if you're a director in your own company you can reduce corporation tax by paying into your own pension.

I assumed Epson meant personal pensions rather than employer schemes? Making sure you take advantage of employer matches I agree is a no brainer. I have a personal pension which is basically just a collection of all of my old pensions in one place so I reduce the fees. I still get tax breaks if I pay into it but I would have to think hard about whether I would want to do that as you get taxed further down the line anyway. That's a decision for another day.

 

[EpsomWolf]

Very few downsides to S/E as far as I could see. Occasional late or written off payment, and the fact you never switch off. Oh and the obvious if you don’t work you don’t get paid, zero, zilch, nothing. And just when you think it’s great going on holiday without asking for time off you find yourself still answering calls and emails and the loss of earnings costs more than the holiday itself.

But, the obvious things like having no boss, seeing what you’re made of and controlling your own destiny is where it’s at, and knowing you get to keep whatever the company invoices instead of a piddling slice off the side that you’re told to be grateful for is quite nice too.

Mostly though it’s about controlling your own destiny. I’ve seen enough management buy-outs, mergers, crooks, chancers, asset-strippers, relocations, phoenix companies, bullshitters, false dawns and false promises, redundancies, desperately stressed drinking-too-much red-faced staff shitting themselves they might be next hoping to limp along until the mortgage gets paid off or the pension kicks in while desperately accepting another crappy erosion of terms and conditions by arseholes exploiting their predicament.

Two sides, but I’d encourage independence and wouldn’t wish the latter on anyone.

 

[EpsomWolf]

I assumed Epson meant personal pensions rather than employer schemes? Making sure you take advantage of employer matches I agree is a no brainer. I have a personal pension which is basically just a collection of all of my old pensions in one place so I reduce the fees. I still get tax breaks if I pay into it but I would have to think hard about whether I would want to do that as you get taxed further down the line anyway. That's a decision for another day.

Was at a time life threw a curveball so everything went into the melting pot. I was lucky enough to have some good advice and importantly loyal support and the unexpected tangents you fly off on worked out positively.

I don’t want to get into that too much but as Andy says, for most people the tax advantages and employer contributions make that route a no brainer and I’d never want to discredit that, but flexibility is very important and it’s probably why I’m a bit sensitive to the subject and misinterpreted your earlier post as the solutions being presented as relatively simple (apologies once again!).

All that said, whichever route anyone chooses to go start as early as possible. Even if that doesn’t ultimately secure your future, it gives a hell of a cushion if those curveballs come along unexpectedly too.