Why are people obsessed with getting a pension

KyussB

PHG wrote: »

I believe you are missing the whole point of a pension, it is the long game. You buy some highs and you also buy the lows (where you main gains come from). Nobody can predict the top or bottom.

There are cases for individual investments but as pensions tend to track an index, you are likely to be quite wrong.

Stupid scaremongering if you ask me. The whole world is saying move to cash and that tends to be the best time to buy.

Playing the long game doesn't mean avoiding ducking existing investments out from foreseeable lows.

It's not like the economic impact from the coronavirus is arriving with the unexpected suddenness that many recessions do - the danger has been obvious for more than a month, for anyone paying attention.

Browney7

KyussB wrote: »

Playing the long game doesn't mean avoiding ducking existing investments out from foreseeable lows.

It's not like the economic impact from the coronavirus is arriving with the unexpected suddenness that many recessions do - the danger has been obvious for more than a month, for anyone paying attention.

But did you dip back into today to bank your 4% gain on the S&P?

tillyfilly

Browney7 wrote: »

But did you dip back into today to bank your 4% gain on the S&P?

No I predict a double dip and bear market

KyussB

One minute people are talking about the long-game - the next they appear to have the memory and foresight of a goldfish.

You've had more than a months advance warning, and you've just had a market rout and bounce to wake you up to the blindingly obvious danger, alongside major economic organizations and world health experts further underlining the dangers.

That's more than enough advance warning, for people to figure out that they should move towards cash, bonds and safe haven assets, until the danger blows over...

But whatever - your money...

pwurple

The problem here is pension funds automatically buy cash sometimes when there is turbulence like this. I want them to buy low, now.

The smart spare money at the moment buys all these cheap stocks. I can see myself in a manufacturing industry that there was a lag on parts availability, and shipping was disrupted, but china seems to be slowly stabilising again. The market is behind.

Not too bothered about the news/entertainment cycle panicking people.

Jim2007

pwurple wrote: »

The problem here is pension funds automatically buy cash sometimes when there is turbulence like this. I want them to buy low, now.

And that is exactly why self directed pensions loose... There are very few people that will stick their whole pension into a low market, then watch it drop another 50% with out selling off... they will then sit on the sideline too long and miss the uplift again....

Tar.Aldarion

Saudades

My pension value has dropped around 13% overall since 19th February (exactly 2 weeks today), but has actually increase 2% from yesterday.

The Coronavirus epidemic appears to still be on the rise though so are more stock and share plummets to be expected?

I'm not retiring anytime soon, I'm curious more than concerned.

cefh17

Saudades wrote: »

My pension value has dropped around 13% overall since 19th February (exactly 2 weeks today), but has actually increase 2% from yesterday.

The Coronavirus epidemic appears to still be on the rise though so are more stock and share plummets to be expected?

I'm not retiring anytime soon, I'm curious more than concerned.

Most likely yes (imo), but how much more or for how long it takes to recover is anybody's guess...

Any of the ones you buy at todays prices you'll get 13%ish more units than you would've at mid Februarys prices

tillyfilly

Coronavirus mutates into second strain which is more aggressive and contagious
Scientists from Peking University said they had found that two main types of the new coronavirus could be causing infections

https://news.google.com/articles/CAIiEMgC0qmIS9tMkx1h0jp3C5cqGQgEKhAIACoHCAowh6D9CjCeyvQCMLno0wU?hl=en-IE&gl=IE&ceid=IE%3Aen

Bass Reeves

tillyfilly wrote: »

Coronavirus mutates into second strain which is more aggressive and contagious
Scientists from Peking University said they had found that two main types of the new coronavirus could be causing infections

https://news.google.com/articles/CAIiEMgC0qmIS9tMkx1h0jp3C5cqGQgEKhAIACoHCAowh6D9CjCeyvQCMLno0wU?hl=en-IE&gl=IE&ceid=IE%3Aen

I not sure if you read the article right. The more aggressive strain was the first one seen in China, the present strain is not as aggressive but more contagious

tillyfilly

Bass Reeves wrote: »

I not sure if you read the article right. The more aggressive strain was the first one seen in China, the present strain is not as aggressive but more contagious

this is all from the same article, none of this is my work for you to contradict !!

Bass Reeves

tillyfilly wrote: »

this is all from the same article, none of this is my work for you to contradict !!

I am not contradicting you I smpointing out

''The preliminary study found that a more aggressive type of the new coronavirus associated with the disease outbreak in Wuhan accounted for about 70% of analysed strains, while 30% was linked to a less aggressive type.

The prevalence of the more aggressive virus decreased after early January 2020, they said.''


The original strain was more aggressive than the present one

Abbey127

Hi I'm not sure about pensions so what would be a good pension someone would be getting when they retire, I know alot of things come in to question but off the top of your head what would people be looking to get when they retire?

Jim2007

Abbey127 wrote: »

Hi I'm not sure about pensions so what would be a good pension someone would be getting when they retire, I know alot of things come in to question but off the top of your head what would people be looking to get when they retire?

Generally speak people should probably aim for about 65% of their income in retirement on average. In the early years of retirement most people are still health and active, so they will probably spend more as they won't want to spend their days sitting at home watching the grass grow.

Squozen

Saudades wrote: »

I'm in my 30's so a long ways to go yet.

It just crossed my mind to transfer everything out of equities and perhaps in to cash for a couple of weeks - or until the Coronavirus's affect on the world markets settles down - and then in a couple of weeks transfer everything back into equities.

Probably a terrible idea then?!

Then again with that being said I don't even know if an online investment change request is processed instantaneously or if it takes days/weeks to process.

Selling in a down market is a terrible idea, you’re locking in your loss. You should be treating it as an opportunity to buy - you’re getting part-ownership of companies that are still just as valuable as they were a couple of months back at a 10% discount. In due time the markets will be charging ahead as if the virus never happened.

Squozen

Abbey127 wrote: »

Hi I'm not sure about pensions so what would be a good pension someone would be getting when they retire, I know alot of things come in to question but off the top of your head what would people be looking to get when they retire?

Look at what you live on right now, excluding your mortgage. Then consider that you’ll not be working so you’ll need some funds to cover travelling, hobbies, what have you. Consider what you may need for medical coverage. IMO, push as much into a pension as you can justify. Very few people complain that they retired with too much pension.

Abbey127

Squozen wrote: »

Look at what you live on right now, excluding your mortgage. Then consider that you’ll not be working so you’ll need some funds to cover travelling, hobbies, what have you. Consider what you may need for medical coverage. IMO, push as much into a pension as you can justify. Very few people complain that they retired with too much pension.

Lol , so how much are we talking 400k over 30 years save around 13k a year ?

sonyvision

Abbey127 wrote: »

Lol , so how much are we talking 400k over 30 years save around 13k a year ?

No way!. Your contributions would grow depending on where it is invested (this growth is tax free). This would be compounded by further growth year on year.

There is online pension assumption calculators you could use to work it out.

Jim2007

Abbey127 wrote: »

Lol , so how much are we talking 400k over 30 years save around 13k a year ?

You'd be incredibly unlucky not to get some growth over a 30 year period, so I'd say more like half that amount.


Also you could think about downsizing your accommodation, heating, maintaining etc a house intended for a family of say five, when there is only to of you will eat into your savings and also burden you with work you won't feel like doing later in live.


The key point is that you have a plan in place for the next third years and that you review it regularly and make the necessary adjustments to bring it into line.

Abbey127

Abbey127 wrote: »

Lol , so how much are we talking 400k over 30 years save around 13k a year ?

If you threw 13k into a pension that grew on average 4% after fees etc over 30 years there'd be €800k there at year 30.

Take 25% of that tax free and there's €600k left, that should provide an income between €12k and €30k per annum in retirment depending on what route you go with it and how it's managed or not managed. Contributory state pension gets added on also, that's another chat really as to what that will look like in 30 years from now.

Abbey127

Thanks for the help. I'm in my early 30s is it better to open up your own penison aswell as your job ? I also have an apartment rented out which I get 14,400 a year from that is going to pay off my mortgage, I'm looking to rent out another property aswell in the near future.

Abbey127

I'm just looking at investing money as I has a kidney transplant a few years ago and there is a chance it could fail In the future and I would need another transplant, that would leave me out of work until I recover from surgery, I'm looking into my own penison or life insurance if worse comes to worse at least my family will be taking care of .

Empty_Space

Could be dead by 70, I'm not pushed about pensions.

Padre_Pio

Empty_Space wrote: »

Could be dead by 70, I'm not pushed about pensions.

Could be dead next week. May as well blow all your money on drink and drugs right now.

Average life is 81 for men and 84 for women. In 1980 it was 71 for men. So in 2070 odd, when you're 81, the average could be 91, or even more depending on how technology progreses.

What are you gonna do if you don't die at 70? Baked beans and dog food?

Baseball72

Well, for me, (now at retirement age but still working full time) - started a pension late in the day, took a hit in 2008 with the crash. Now lashing in €1K per month - more of a case of putting money at arms length, tax effectively....come 70, God willing, draw down what is there and use it for special purchases.....after exhausting my weekly state pension.....it will be tight of course.

So, start early on the pension road.......

Empty_Space

Empty_Space wrote: »

Could be dead by 70, I'm not pushed about pensions.

You will be the closer 70 gets and that's when it will hurt your take home pay

GreeBo

Empty_Space wrote: »

Could be dead by 70, I'm not pushed about pensions.

Do you have enough saved to live off for the 3-5 or so years between retirement and your early death?

Dodge

Empty_Space wrote: »

Could be dead by 70, I'm not pushed about pensions.

Obviously trying to be funny but what some young people don’t realise is that by retirement age, it probably won’t be just about you. There’ll (hopefully for you) be a spouse/partner and children, and maybe even grand kids

Saving for your retirement helps all those people out too.

My ex boss is genuinely having the time of his life in retirement. Him and his wife travel everywhere and spoil their grandkids. They spent the mid term break in Disney world with their grand kids

Now others will have different ideas about how they want to spend their retirement but for him, he’s doing what he wants to because himself and his wife prepared for it.

Jim2007

Empty_Space wrote: »

Could be dead by 70, I'm not pushed about pensions.

Why do you want to wait until 70 to retire? Of all my friends, colleagues and other contacts, I only know two that are still working after 55 and neither of them are happy about it. There are lots more interesting things to do in life than work.