Are pensions worth investing in?

Question

Thanks DCGIRL - I am UK based.

Thanks - some good ideas.

Answer 1

Generally yes they are. This is because....

....unlike other saving schemes a pension is non-taxable.
In the long run this would save you a considerable amount of money as opposed to just investing the money in equivalent shares or saving accounts, etc.

There are different types of pensions and you should shop around for the best deal that suits you.

Remember that pensions are good because they aren't taxable. They can also be a good way to provide an income for you when you retire.

But make sure you are happy with what your pension is being invested in as some investments are more risky than others (this applies to any investment and not just pensions).

And remember that the actual pension you recieve will depend on a number of factors such as:

+ how much you pay into it before retiring.
+ how long you pay into it for.
+ the investment return achieved on the pension fund
+ the value of long term interest rates when you retire.
+ other factors, etc....

I am not advising you!

Answer 2

The primary benefits to investing in a pension rather than investing by yourself is in the tax implications. First, you are probably investing 'pre-tax' dollars, i.e., the amounts that go into your pension are not taxable to you. Second, dividends and gains in a qualified pension plan are not taxed when incurred, but only when you take the money out, and usually at a lower rate because you are retired and not working. Tax-free investing is better than taxable investing.

Answer 3

Have a pension by all means but don't rely on it. The govement will want they share as will the managers of your pension and what your left with may buy you a cup of coffee lol
Save you rmoney it cost less and the return is all yours.

Answer 4

it isn't the project of retirement...this is the approach the federal government is going approximately it. a million. there's no income SS. the federal government has spent all of it. So now we sustain it via contributions from persons (not in assessment to a Ponzi scheme). In 1960, there have been 5.a million workers consistent with beneficiary. at present, there is 3.3 workers consistent with beneficiary. It only isn't sustainable! 2. We merchandise to putting our money right into a mandatory investment...with a a million.5% fee of return (i'm getting greater clever in my checking account)...and dropping 3% to inflation each and every twelve months. If social protection grew to become into provided interior the interior maximum marketplace, it would be suspended and investigated for outright fraud via the SEC. 3. Japan has a number of the utmost tax expenses interior the worldwide. in addition they have suffered terrible recessions (ever heard of the "lost decade"?). Their equipment is unsustainable as ours is. lower back, Republicans have not got a project with retirement. maximum might desire to work out greater investments given tax exempt prestige (to not point out a repeal of the capital valuable properties tax). With greater beneficial than 50% of the elementary client partaking interior the marketplace, Republicans desire greater human beings putting away for retirement. We do exactly not think of the federal government, which MANDATES our contribution, SPENDS the saved capital, LOSES overall value interior the investment, and could pay OUT to somebody, regardless of contribution... ...is the suited approach for going approximately it.

Answer 5

I think a 401k where your employer matches a portion is worth it. Fewer and fewer companies are offering traditional pensions because there are so many temps and no sense of trust between worker and employer that they don't even bother.

Answer 6

Put your money into property. That was the advice I was given years ago. I am so glad I jacked my pension in years ago, it would buy me a cup of coffee now if I had held on., An old friend of the family said........ Buy land son , they have stopped making it !!!!!!

Answer 7

no, they move the goal posts every so many years so they claw it all back. save as much as you can and avoid financial advisers
who charge a fee. invest on the safe margin line as it is after all a pension your after not a get rich quick scheme

Answer 8

Its worth sitting on? I Gave you two proper answers and u take the piss thanks for the two points yourself!
Kev sitting on his cream scuffed couch.
Make this the 3rd Answer to you.
Pensions are no longer worth investing in unless you are within 15 years of retirement age being 65 (Unless Professional,Govt etc retirement age being for eg police 50yrs of age on average.
see financial ad visor or your ringmaster in the "Big top" Clown.
Hope u sort your life out.
Kev

Answer 9

Read the article in the 'Your Money' section of yesterday's Daily Telegraph (via the web also!). There was also an article on annuities to keep you interested!

Answer 10

Please post what country you are from, as the pension systems are very different in different parts of the world!!!