It is Obvious

Chris Rick has got altogether too much to say

Archive for July, 2019

Plan for the future

Posted by chrisrick13 on July 31, 2019

It is obvious: I’ve got a pension

 

All those years paying NIC. At the end I’ve got a state pension. All thaT money stashed away and with compound interest rolls up into a decent income when I retire.

Except that is not what happened. The money paid in was used to pay pensioners who were alive at the time. Me and 3 other guys were supporting a pensioner. Certainly when I started she didn’t live long and I could be moved on to another one. I said she as the men barely lived to claimed any pension.

Now there are just two people contributing to my state pension. They could easily have to do it for 20 years. I hope they keep their jobs in the coming world recession and probable reset. Maybe they could come and live with me and we could share our costs.

I have deferred my state pension and now can have 50% more each week or a lump sum to make up for the pension payments I have not yet taken. That’s an easy one. Going to grab my lump sum. Just have to make sure it is in a year I pay no tax in and then my lump sum won’t be taxed. Tax expert is my new job title.

Going to squander the money. 4+ years of payments in one go. If I grab the wife’s as well I could probably get a Ferrari.

I’ve got lots of (small) private pensions. Thought I had to do it as everyone else was all those years ago. Would have been better putting the money under the mattress. Would have slept better.

What are the pension funds doing with my money? They are buying bonds with a negative interest rate or investing in shopping malls just at the time everyone stops using them.

Annuity? No chance. Going to grab the cash and run. That is the good thing about lots of pensions: they are all quite small and I can avoid higher rates of tax when I grab them.

Bit of a problem though. Do I grab the money and put it in a bank that will go bust any minute now or leave it in a pension fund buying bonds with a negative rate of interest? Could keep it in GBPs that are collapsing on the Forex market.

Perhaps a big bet on Brexit not being nearly as bad as a lot of people seem to think it will be.

So is it Ferrari and a serious drugs habit or shotgun and a room full of baked bean tins? Has to be the Ferrari doesn’t it?

 

It is obvious: I’ve got a pension – not.

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