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’
...
- 31.7k
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 ...
- 131k
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 ...
- 3,710
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 ...
- 902
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 ...
- 42k
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, ...
- 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 ...
- 35.7k
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 ...
- 32.7k
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 ...
- 42k
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 ...
- 26.5k
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 ...
- 27.9k
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 ...
- 27.9k
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 ...
- 131k
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 ...
- 9,505
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 ...
- 22.9k
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 ...
- 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 ...
- 136k
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 ...
- 131k
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 ...
- 5,095
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' ...
- 3,975
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.
...
- 27.9k
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 ...
- 35.7k
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 ...
- 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 ...
- 27.9k
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 ...
- 57k
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 ...
- 27.9k
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, ...
- 27.9k
6
votes
Accepted
Is $50k in business income enough to consider hiring a pension specialist?
Now I'm in a spot where I want to invest my business income into something.
This is quite easy. You can open a SEP IRA for your self-employment income. SEP stands for "simplified employee pension" ...
- 7,506
6
votes
Accepted
Does higher rate tax relief count towards pension contribution limits in the UK?
The limit is on your gross contribution, i.e. the total amount your pension scheme receives.
For employer contributions, no tax is ever charged and the gross contribution is just that amount.
For ...
- 27.9k
6
votes
Are traditional pensions still optimal in the 21st century?
Grade 'Eh' Bacon has already given a strong answer, which applies well to UK pensions.
But to address your specific problems:-
Too restrictive (you can't use the money until an government set age, if ...
- 9,781
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