47 votes
Accepted

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’ ...
Chris W. Rea's user avatar
  • 31.7k
41 votes

Do inbound gifted monies require a credit unlock?

It wouldn't. This sounds like a scam. Especially since you haven't explained why anyone else's pension would be sending money to you.
keshlam's user avatar
  • 46.5k
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 ...
D Stanley's user avatar
  • 135k
21 votes
Accepted

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 ...
marktristan's user avatar
  • 3,710
21 votes
Accepted

What happens to pension schemes when they run out of beneficiaries?

As @littleadv said in comments, defined contribution schemes track individual pots of money separately and it becomes part of their estate when they die, so there's no risk of a surplus or deficit. ...
GS - Apologise to Monica's user avatar
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 ...
user0721090601's user avatar
17 votes
Accepted

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 ...
Grade 'Eh' Bacon's user avatar
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, ...
Peter N's user avatar
  • 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 ...
Joe's user avatar
  • 35.8k
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 ...
NL - Apologize to Monica's user avatar
11 votes
Accepted

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 ...
Grade 'Eh' Bacon's user avatar
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 ...
Justin Cave's user avatar
  • 27.3k
10 votes

Advice for investing money for a 15-year old

Note that if your child makes more than £100/year in interest from money you give them, then you have to pay tax on it anyway. [A previous version of my answer talked about £100/month because I got ...
GS - Apologise to Monica's user avatar
9 votes
Accepted

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 ...
GS - Apologise to Monica's user avatar
8 votes
Accepted

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 ...
GS - Apologise to Monica's user avatar
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 ...
D Stanley's user avatar
  • 135k
8 votes
Accepted

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 ...
yoozer8's user avatar
  • 9,514
7 votes
Accepted

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 ...
Draken's user avatar
  • 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 ...
mhoran_psprep's user avatar
7 votes
Accepted

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 ...
D Stanley's user avatar
  • 135k
7 votes

Is Merging multiple pension scheme pots a good idea?

Different schemes can have different rules. For instance some schemes used to allow taking a pension at 50 rather than 55 and if you joined such a scheme then your rights to do that still exist. If ...
Robert Longson's user avatar
7 votes

Do inbound gifted monies require a credit unlock?

While I agree that this sounds like a scam, and should be handled with great caution (and liberally consulting your bank authorities), it is faintly possible that your own bank will tell you that ...
arp's user avatar
  • 351
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 ...
Joe's user avatar
  • 35.8k
6 votes

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

The thing you appear to neglect is that: Many people don't have a choice of when they retire. They get sick They break a leg or arm or physically can't work anymore They get laid off and employers ...
Lan's user avatar
  • 2,680
6 votes

Resign my job - can I claim tax return? how to claim pension contribution?

In general you should be entitled to a refund of some income tax because UK income tax is levied on an annual basis but calculated monthly assuming you'll keep the same pay for the rest of the tax ...
GS - Apologise to Monica's user avatar
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. ...
GS - Apologise to Monica's user avatar
6 votes
Accepted

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' ...
AakashM's user avatar
  • 3,982
6 votes
Accepted

Is National Pension Scheme(NPS) not a good investment?

The way the question is worded, it is slightly opinion based. Just to point out; Tax benefits - Upto 50000 INR is tax free when invested here. This is actually 200,000 INR under 80C. So if you ...
Dheer's user avatar
  • 57.1k
6 votes
Accepted

What are units in pensions?

Often pensions are invested in funds, or "unit trusts", that are denominated in "units". So each pension contribution you make will be going to buy a number of these units of a particular fund, which ...
GS - Apologise to Monica's user avatar
6 votes
Accepted

When is paying into a UK pension bad tax planning? (LTA)

Your question about when it makes sense to stop paying in depends on three things: The possible growth rates of your investments. The costs of going over the LTA. The benefits when under the LTA, ...
GS - Apologise to Monica's user avatar

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