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47

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’ A new law means that every employer must automatically enrol workers into a workplace pension scheme if they: are aged between 22 and State ...


36

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 another school system. But other than that there's generally no restrictions on being able to work in other professions, or perhaps even other schools in a ...


26

To be honest, I think a lot of people on this site are doing you a disservice by taking your idea as seriously as they are. Not only is this a horrible idea, but I think you have some alarming misunderstandings about what it means to save for retirement. First off, precious metals are not an "investment"; they are store of value. The old saying that a gold ...


20

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 not be affected. So to continue employment, the superintendent would need to go to a different state, or work in the private sector. In general, this is the ...


19

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 contribution from your pay before income tax is applied; or Income tax is reclaimed on your contributions after you have made them. First, the pension scheme ...


17

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 benefit based on, generally, years of service & salary over that period. Even if the market fails, the company still has a legal obligation to pay out the ...


14

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, especially if it's tax-advantaged or there's a company-match, can be a useful savings scheme. So even if you're still working when you reach normal retirement age, it ...


12

This sound like a very bad idea. If you invest exclusively in silver, your investment is not diversified in any way. This is what I would call risky. Have a look at index funds and ETFs and build a diversified portfolio. It does not take much time, and you don't need to let it do by someone else. They are risky too, but I see "silver only" as much riskier. ...


12

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 payments while also collecting a full pension. People who did not pay anything into SS are able to collect money - less, but still something - from the system. ...


11

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 pension will not have payroll taxes withheld, so it will certainly not count toward the calculation of your Social Security retirement numbers. Beyond that, this ...


10

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 are. This isn't a simple decision, unfortunately. Advice I've seen suggested that some portion of the money should stay in the market, earning market rate of ...


9

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 that, paying down the mortgage makes sense as I can calculate the amount I will save. I also believe that rate rises are coming in the future, based on the talk ...


8

No. Regardless of citizenship, you need to have paid into the social security system for 10 years or more to be eligible to collect a retirement benefit. This is measured in the form of "credits" -- you earn one credit for each quarter of a year that you work. You need 40 credits to earn a retirement. If they are deemed to be disabled or have a qualifying ...


8

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 (£3,600 gross) into a personal pension and get tax relief on the contributions at the basic 20% rate, even if she's not paying tax. Pensions can now be split upon ...


8

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 be a fee payable on one or both schemes for the transfer (most likely the scheme you are transferring away from) - you would need to look at the documentation to ...


8

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 to pay off your student loan in full, you should consider the repayment as a benefit for you too, so the balance is between £580 after tax and £1138 in your ...


8

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 at 5.6% per year for 37 years and needs to continues to grow at that rate to last another 20 years). Which isn't terrible, but with a 40-year investment ...


7

Yes, if you are permanently departing from Hong Kong proof of permission to reside permanently elsewhere must be produced and such permanent departure can only be used as a ground for withdrawal once in a persons lifetime.


7

Vesting generally means that you are entitled to a pension as per the plan rules. If you are not vested and your employment is terminated (e.g. via resignation or firing), the pension plan will just return all the money accumulated thus far to you (possibly roll it over into your IRA or your new employer's pension plan or 401k plan if that is possible). ...


7

First is storage which is a big and a detrimental headache. Security is another big headache. Investing in precious metal has always been an investment opportunity in the countries in the east i.e. India and China because of cultural reason and due to absence of investment opportunities for the less fortunate ones. It isn't the case so in the West. ...


7

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 contributing a percentage of your salary each month equivalent to half your age when you started a pension. So if you were 30 when you started a pension, you ...


7

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 benefit scheme. In this type of scheme you earn a salary of £X during your working life, and you are then entitled to a proportion of £X (the proportion depends on ...


7

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 already taken a tax-free lump sum from your pension fund, you can take up to 25% totally tax free immediately. That makes getting a house for 40K very accessible. ...


7

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 paying your regular monthly payment into the pension pot? If not, then you are not "boosting" your pension by making a one-off payment of £10,000 into it to ...


7

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 paying rent, and worried about being able to pay rent when you retire, the obvious choice is to buy a flat now on a thirty-year mortgage so that you can stop ...


7

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 taking a commission. They appear to often move your money through dangerous products that provide them a lot of money for selling but aren't guaranteed to pay out to ...


6

The specific "State Pension" plan you have linked to is provided by the government of the U.K. to workers resident there. More generally speaking, many countries provide some kind of basic worker's pension (or "social security") to residents. In the United States, it is called (surprise!) "Social Security", and in Canada most of us call ours "Canada ...


6

One rule of thumb I've seen is that you want an amount large enough that you can pull 4-5% from it per year to meet your needs. That seems to be seen as a withdrawal rate that could largely be made via a combination of dividends on stocks and interest on fixed income, and thus be maintained relatively indefinitely. In addition to what you listed, don't ...


6

To start, not "after taxes". This payout from a lump sum pension is transferable to an IRA, with all the flexibility that affords you: Ability to withdraw at your own pace after 59-1/2, not the fixed payout of the pension. Ability to convert to Roth if you wish, at any time (e.g. in lower bracket years or to 'top off' your bracket as you wish. Ability to ...


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