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Contracting out of S2P

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    Contracting out of S2P

    I know it's a permie problem. But roughly what are the advantages of contracting out of State Pension and go for a private pension (in terms of money saved from state pension waste)?

    I know it's a vague question but a vague answer is appreciated too.
    I've seen much of the rest of the world. It is brutal and cruel and dark, Rome is the light.

    #2
    None really, by the time you get to retirement age your pension won't be worth a light. Either the state one'll be so low as poverty, or your private will have been tax grabbed along the line as it'll be so low as poverty.

    I suggest you follow threadeds pension scheme: shag as many women as possible: if that doesn't kill you off before you need a pension then there'll be enough kids to keep "visiting".
    Insanity: repeating the same actions, but expecting different results.
    threadeds website, and here's my blog.

    Comment


      #3
      Originally posted by threaded
      [..]
      I suggest you follow threadeds pension scheme: shag as many women as possible: if that doesn't kill you off before you need a pension then there'll be enough kids to keep "visiting".
      now you are talking!!!!!!!!!!!!!
      I've seen much of the rest of the world. It is brutal and cruel and dark, Rome is the light.

      Comment


        #4
        Originally posted by Francko
        I know it's a permie problem. But roughly what are the advantages of contracting out of State Pension and go for a private pension (in terms of money saved from state pension waste)?

        I know it's a vague question but a vague answer is appreciated too.
        Franco, the general advice at the moment is that you would do better by staying contracted in. However, as Threaded alludes, that is under the current rules. The current or any future government might change the rules and leave you with nothing, so it really comes down to do you trust the state to provide with the second state pension or do you want some (very) nominal control over the money yourself (which the state might also grab back or rule change somewhere down the line anyway).

        Comment


          #5
          Originally posted by Lucifer Box
          Franco, the general advice at the moment is that you would do better by staying contracted in. However, as Threaded alludes, that is under the current rules. The current or any future government might change the rules and leave you with nothing, so it really comes down to do you trust the state to provide with the second state pension or do you want some (very) nominal control over the money yourself (which the state might also grab back or rule change somewhere down the line anyway).
          Thanks LB. I have read some more on the topic and also it seems that there is no fiscal benefit of contracting out if you are on higher band salary. However, yes, seems too complicated and not worth trusting. I would rather spend the money needed for the pension fund elsewhere.
          I've seen much of the rest of the world. It is brutal and cruel and dark, Rome is the light.

          Comment


            #6
            The only good thing the NL government has done to date is to reduce cost and relax some rules for private pensions. I understand that in about a year's time there will a further major change with further relaxation of many of the rules about how much you can contribute and what you can contribute. I will wait to see the nightmarish small print before I credit this government with actually doing two good things but on the face of it...

            PS Think anything under about £180k is supposed to be not worth having. You just lose benefits you would have had if pension of nowt.
            Last edited by xoggoth; 11 September 2005, 16:05.
            bloggoth

            If everything isn't black and white, I say, 'Why the hell not?'
            John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

            Comment


              #7
              Franko,

              as you know planning for the future and pensions etc is a high priority these days

              to be blunt, if you are an IT permy living in Laaandaaan then whatever
              disposable cash you have available to invest in a pension will not be worth investing or bothering anyway !

              As was suggested above, p1ss it up the wall and live off the state when you're 65.

              Or take the bull by the horns and become a .Net contractor like me and DimPrawn.

              Milan.

              Comment


                #8
                Or... form your own religion...

                Blessed are the long haired workshy hippies - please give generously.
                Oh Jesus - Disaster Management Ltd.
                You know you'll need us!

                Comment


                  #9
                  looking at the bigger picture, considering the cost of living and household expenses, mortgage, car, food, going out it is difficult to see how anybody in the Saaafff East with a combined income of less than 150k a year can make anything more than a dent in the kind of financial provision which needs to be made for a comfortable retirment from 50 to 55

                  Milan.

                  Comment


                    #10
                    Originally posted by zeitghost
                    55? 55? I'll working to 78 like my poor old grandad...

                    He only retired because of Alzheimer's.

                    (Particlularly nasty in the Giant Alien Lizard by the way).
                    You lot ( ) would survive a lot longer if you didn't eat the brains of your dead relatives.
                    Oh Jesus - Disaster Management Ltd.
                    You know you'll need us!

                    Comment

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