Pensions :-(

[FL/MAYO]

Start saving for your retirement as soon as you start working, time and the power of compound interest will be on your side. The experts advise that your should invest between 10% and 15% of your income before taxes. I live in the U.S so I am not up on whats available in Ireland, but if you invest in mutual funds the average yearly return should be around 7%. Unfortunately the old styled defined benefit pension plans are becoming a thing of the past.

[playwiththewind1st]

Big push on pensions at the minute. Have just gone through introducing auto-enrolment into my payroll this week & big changes arriving soon in the local governmentt pension scheme in NI. Although, with an employer's contribution rate of 20%, that's a lot of cash to turn down, even if it is deferred earnings.

[seafoid]

You'd be doing well to get any savings account, investment etc to come anywhere near your interest rates on your mortgage.

Not necessarily - you just need to move your money regularly!
My mortgage is 3.99% - and up for a new deal soon and from my research can get it to 3.2% for a few years or 3.7% for a longer fix.

Savings - Santander 1,2,3 account - 3%
Nationwide current account - 5% up to £2.5k.

So you do need to play with your options and make the time to devote a bit of time once a year or more to finding the best deals for your money.

I've a frozen 12 year pension (shipyard) decent enough but left, started in Bombardier and have another frozen pension for nearly 3 years. Nothing else, wife has the teachers pension so she's sorted ffs. Does my frozen pensions garther more money (through interest)

Am starting to look at savings as I've nowt in the bank, kids drain every penny and it won't be long before one will be looking to go to college (5 years). Best options up north would be? Which banks give the best rates

Milltown

your frozen pensions are just not getting extra years of service added on but they must be invested somewhere. The administrators should be able to tell you. If you have another 15 to 20 years left to retirement you'd probably be better off having them in equities.

For other savings you get various tax incentives from HMG with ISAs so you would need to research this.
The problem with leaving your money in the banks is that the Bank of England are keeping interest rates low because the UK economy is fucked with debt that is not going to be paid off for the foreseeable. Bank customers are paying for this.   

I saw an ad in the FT for this. It has more info than you'll get on here

http://www.amazon.co.uk/FT-Guide-Investing-Income-Through/dp/0273735659

One thing I was thinking might be suitable would be dividend fund- you buy access to the shares of solid companies that pay a decent dividend - you could get 5- 7% instead of considerably less at the bank.

[supersarsfields]

CFD's.

[Mario]

You'd be doing well to get any savings account, investment etc to come anywhere near your interest rates on your mortgage.

Not necessarily - you just need to move your money regularly!
My mortgage is 3.99% - and up for a new deal soon and from my research can get it to 3.2% for a few years or 3.7% for a longer fix.

Savings - Santander 1,2,3 account - 3%
Nationwide current account - 5% up to £2.5k.

So you do need to play with your options and make the time to devote a bit of time once a year or more to finding the best deals for your money.

I've a frozen 12 year pension (shipyard) decent enough but left, started in Bombardier and have another frozen pension for nearly 3 years. Nothing else, wife has the teachers pension so she's sorted ffs. Does my frozen pensions garther more money (through interest)

Am starting to look at savings as I've nowt in the bank, kids drain every penny and it won't be long before one will be looking to go to college (5 years). Best options up north would be? Which banks give the best rates

It depends if your pension is defined benefit (DB) or defined contribution (DC), if its DC you investments will continue to get investment returns, if it is DB you benefit will be defined when you left, something like 1/60 x service x Salary at Date of leaving, this formula will give you your annual pension at retirement. This pension will be revaluation from your Date of Leaving until your retirement age by the rate of inflation.

I think Bombardier have a DB plan but i'm not 100% sure.

[seafoid]

You'd be doing well to get any savings account, investment etc to come anywhere near your interest rates on your mortgage.

Not necessarily - you just need to move your money regularly!
My mortgage is 3.99% - and up for a new deal soon and from my research can get it to 3.2% for a few years or 3.7% for a longer fix.

Savings - Santander 1,2,3 account - 3%
Nationwide current account - 5% up to £2.5k.

So you do need to play with your options and make the time to devote a bit of time once a year or more to finding the best deals for your money.

I've a frozen 12 year pension (shipyard) decent enough but left, started in Bombardier and have another frozen pension for nearly 3 years. Nothing else, wife has the teachers pension so she's sorted ffs. Does my frozen pensions garther more money (through interest)

Am starting to look at savings as I've nowt in the bank, kids drain every penny and it won't be long before one will be looking to go to college (5 years). Best options up north would be? Which banks give the best rates

It depends if your pension is defined benefit (DB) or defined contribution (DC), if its DC you investments will continue to get investment returns, if it is DB you benefit will be defined when you left, something like 1/60 x service x Salary at Date of leaving, this formula will give you your annual pension at retirement. This pension will be revaluation from your Date of Leaving until your retirement age by the rate of inflation.

I think Bombardier have a DB plan but i'm not 100% sure.

It doesn't matter whether it is DB or DC. For DB frozen or paid up pensions the money is invested. The value of the money held for everyone who leaves the scheme is calculated using discount rates so the money has to be invested to generate the returns to match back to the original value at retirement before the effect of the discount factors.
If the money was put under a mattress it wouldn't match the annual pension assumed when the person  retires. 
 

[Mario]

You'd be doing well to get any savings account, investment etc to come anywhere near your interest rates on your mortgage.

Not necessarily - you just need to move your money regularly!
My mortgage is 3.99% - and up for a new deal soon and from my research can get it to 3.2% for a few years or 3.7% for a longer fix.

Savings - Santander 1,2,3 account - 3%
Nationwide current account - 5% up to £2.5k.

So you do need to play with your options and make the time to devote a bit of time once a year or more to finding the best deals for your money.

I've a frozen 12 year pension (shipyard) decent enough but left, started in Bombardier and have another frozen pension for nearly 3 years. Nothing else, wife has the teachers pension so she's sorted ffs. Does my frozen pensions garther more money (through interest)

Am starting to look at savings as I've nowt in the bank, kids drain every penny and it won't be long before one will be looking to go to college (5 years). Best options up north would be? Which banks give the best rates

It depends if your pension is defined benefit (DB) or defined contribution (DC), if its DC you investments will continue to get investment returns, if it is DB you benefit will be defined when you left, something like 1/60 x service x Salary at Date of leaving, this formula will give you your annual pension at retirement. This pension will be revaluation from your Date of Leaving until your retirement age by the rate of inflation.

I think Bombardier have a DB plan but i'm not 100% sure.

It doesn't matter whether it is DB or DC. For DB frozen or paid up pensions the money is invested. The value of the money held for everyone who leaves the scheme is calculated using discount rates so the money has to be invested to generate the returns to match back to the original value at retirement before the effect of the discount factors.
If the money was put under a mattress it wouldn't match the annual pension assumed when the person  retires. 

I know how it works, im an actuary. Im just stating how his DB pension will grow by inflation, how the assets perform for his DB pension doesnt matter, his benefits are defined at DOL and the company has to provide them regardless how well (or poorly) the assets perform

[johnneycool]

I know how it works, im an actuary. Im just stating how his DB pension will grow by inflation, how the assets perform for his DB pension doesnt matter, his benefits are defined at DOL and the company has to provide them regardless how well (or poorly) the assets perform

Even when in receivership and/or defunct?

[seafoid]

I know how it works, im an actuary. Im just stating how his DB pension will grow by inflation, how the assets perform for his DB pension doesnt matter, his benefits are defined at DOL and the company has to provide them regardless how well (or poorly) the assets perform

Even when in receivership and/or defunct?

It depends where the money is. If it's in a separate fund then it shouldn't be affected.
It's not ideal to have the pension fund mixed with the general cashflows.

[Tony Baloney]

Buy a Euromillions ticket this evening.

[Mario]

I know how it works, im an actuary. Im just stating how his DB pension will grow by inflation, how the assets perform for his DB pension doesnt matter, his benefits are defined at DOL and the company has to provide them regardless how well (or poorly) the assets perform

Even when in receivership and/or defunct?

If the company winds up, the pension scheme will enter the pension protection fund, current pensioners will not have their pensions reduced however pension increases will be lower, non-pensioners will have there pension capped at £30k p.a. or if under this amount, reduced by 10%, pension increases will also probably be lower.

[Milltown Row2]

When I left the Yard they stopped the pension scheme they had a core work force of 50 who'll still be there, but the rate of ex employees is dropping due to death, will that mean more in the pool  or does your entitlement change?