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47 votes
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Why would someone who thought they will work until they die contribute to a pension plan?

Why? Simply: because it has been mandated as law, and so you may have no choice in the matter whether to contribute or not. Quoting from GOV.UK – Workplace pensions: ‘Automatic enrolment’ ...
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36 votes

Can a person work after "retiring" and receiving a pension?

It will depend on the terms of the pension. There may be non-compete clauses or something similar for superintendents (or even teachers) that prevent them from drawing a pension while working for ...
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  • 113k
21 votes
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Are UK pensions taxed twice?

Short answer: no… When you pay into a a defined contribution pension (for example a SIPP), you get income tax relief at source. Usually this happens in one of two ways: Your employer makes the ...
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  • 3,655
20 votes

Can a person work after "retiring" and receiving a pension?

Yes. The rules will depend on the rules of the pension fund, though. In Illinois, If you return to state employment on a contractual basis, […] or for the private sector, your SERS benefit will ...
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17 votes
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Do pension pots get interest?

There are two main types of pensions to consider in answering your question: (1) Defined Benefit pension plan. This type is the 'traditional' pension plan. It means that when you retire, you get a ...
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15 votes

Why would someone who thought they will work until they die contribute to a pension plan?

Even if you expect to work you might not be able to due to health reasons or economic factors that make it difficult to obtain employment, so it's good to have a safety-net. A pension scheme, ...
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  • 151
12 votes

Will the Windfall Elimination Provision reduce my Social Security?

Your contributions that you've already made are made and done, and will not disappear. What the Windfall Elimination Provision does is make sure that people do not collect the subsidized low-income ...
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  • 34.6k
11 votes

Will the Windfall Elimination Provision reduce my Social Security?

The Windfall Elimination Provision will possibly reduce your benefits from Social Security depending on how much money you receive as a pension from the TRS. Money that is earned toward your TRS ...
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11 votes
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Are traditional pensions still optimal in the 21st century?

There are a few issues with your assumptions, which significantly downplay the benefits broad investment vehicle you are calling 'pensions'. I will tackle 3 of them: Tax advantages: this is ...
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11 votes

Foreigner making voluntary US social security contributions to get a pension

No, you can't make voluntary contributions. You'd need to earn US income and pay US taxes in order to earn additional Social Security credits. Depending upon where in the world you live, you may be ...
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10 votes
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Housewife pension options

She should probably make voluntary NI contributions until she has a 35-year contribution record, so that she gets a full state pension in her own right. She can also contribute up to £2,880 net (£3,...
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10 votes

Retirement - Annuity or not?

You really should consider sitting down with an independent financial advisor to run the numbers for the various options and discuss what risks you're comfortable with and what your requirements/goals ...
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  • 31.8k
9 votes
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As a contractor, should I overpay my mortgage or contribute to a pension?

None of what I say is advice directed to you. It is how I would continue to analyse the situation you have, were it mine. First off, I prefer to work in certainties more than possibilities. Saying ...
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9 votes
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What counts toward the tax free limit for pension contributions in the UK

These two questions/statements are addressing different aspects of the pension tax system. The general principle is that you should be able to have pension contributions be tax-free up to the £40k ...
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8 votes
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Should I combine all my pension pots?

There are several angles to this which you would need to investigate - there's no one right answer to this. Not all schemes will accept transfers in, so that might rule it out completely. There may ...
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  • 21.7k
8 votes
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Are there any other considerations for bonus sacrifice into Pension (UK)

The pension is indeed the clear winner and you haven't missed anything. It's easiest to just compare everything in current numbers as you've done and ignore investment opportunities. Given you expect ...
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8 votes

Young w/ pension plan: lump sum or annuity?

Using Excel's IRR function and the following cashflows: 10,000 today (age 28) -6,000 annually from age 65 to age 85 (life expectancy) Gives me an IRR of about 5.6% (which means that the 10,000 grows ...
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  • 113k
8 votes
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Are the Vanguard Target Retirement Plans designed for when you turn 65, not for when you plan to retire?

No. It should reflect intended retirement year, not age. From Vanguard's website: The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire ...
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  • 8,392
7 votes

How much should a 24 year old contribute to a pension?

The rule of thumb is your age at the start of the pension divided by two, so 12%. From The Telegraph article How to make sure you save enough for retirement: As a rule of thumb, you should be ...
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  • 8,766
7 votes
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Retirement - Annuity or not?

Firstly, you should familiarise yourself with your options for your pension fund. They changed as of 6th April 2015 so it's all quite new. The Government's guidance on it is here. If you haven't ...
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7 votes

Suggested ways to save for a comfortable retirement in the UK given the lifetime allowance limits on pensions?

Your main choices are ISAs and property. You can put over £15,000 per year into an ISA, which means over £450,000 by the time you retire, not allowing for growth in your ISA investments. But if you're ...
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  • 22.2k
7 votes
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Cold email from DeVere Germany, who are they?

On further research, I found more information. They aren't a scam where they're trying to steal all of your money, instead they're using dodgy loopholes and functions to move your money and then ...
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  • 183
7 votes

How much can I save if I don't own a car? A worked example comparing car to pension

I have no idea (I am in the US) if those numbers make sense. The biggest thing I see missing, is you aren't looking at the expenses you do have even though you don't drive. You are likely to have ...
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7 votes
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How do I Value a Defined Benefit Plan

The typical way to value such payments is to think about it from an investment standpoint. Meaning, how much would I pay for an annuity (which is just a fixed series of payments) with some interest ...
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  • 113k
6 votes
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Is it possible to use part of my pension to pay loans, or to opt out of the pension scheme altogether for a few years until my loans are paid?

Most employers will let you can opt out of making private pension contributions so you would have that money available now. However, private pension contributions are tax-free, so if you are ...
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  • 21.7k
6 votes

Pensions, annuities, and "retirement"

There are broadly two kinds of pension: final salary / defined benefit, and money purchase. The text you quote above, where it talks about "pension" it is referring to a final salary / defined ...
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  • 21.7k
6 votes
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Financial loan/pension jiggery pokery?

Interesting question, and I'm not sure there is one right answer, however my thoughts are too long for a comment so I'll put them in as an answer anyway. Some considerations: Would you still be ...
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  • 21.7k
6 votes

Pension LTA (Life Time Allowance) limit criteria

Note - this is a complicated topic. I've read the rules multiple times and I'm still not sure I understand them perfectly. So please take this with a pinch of salt and read the rules for yourself. ...
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6 votes
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Recovering Small Workplace Pension Pots

the pots will be negligible, however this capital could be used better elsewhere if I was to withdraw them. You won't be able to withdraw the money. Notwithstanding the recent 'pension freedom' ...
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  • 3,542
6 votes

Why would someone who thought they will work until they die contribute to a pension plan?

I would look at the wording of the question. "Expect" does not necessarily mean that they plan to work until they die, or that they want to work until they die. "Expect" here likely means that they ...
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  • 34.6k

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