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“Anyone who seriously begins investing for their retirement at 20 years old will need to save £359.42 per month. Compare that with the £1,427.86 it takes monthly to reach £1 million when you start saving at 40 and the benefits of starting early come into sharper relief. “

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I started at age 45 and put in the equivalent of just under two years payments above (£1427.00 ) a month.

My total actual investment , net of tax was £27,600 in 2005 . ( No additional payments in ).

That has already grown past £2M without any further payments. Simply though owning stocks that far outperform the rotten 7% average, pension fund managers produce.

This is the way the pension industry spouts its story.

https://blog.moneyfarm.com/en/pensions/how-to-retire-with-a-1-million-pension/

Look at the payments required each month from aged 20 to be paid for 43 years !!!

That’s to provide a million pound pension

Do it my way ,on the same basis , invest for just 2.5 years ( £10,000 ) in shares that are growing profits at 30% compound, and its job done in half the time, with NO further payments into the plan. After 20 years you have one million pounds .

Check this out for yourself , using a compound interest calculator found on the internet.

Tax free contributions up from £40,000 to £60,000 .

The bankers are going to lap that up.

It does appear it’s official, SIPP lifetime Allowance raised to a huge £1.8M.
This means different things, for different people, depending if they are in work or retired.
Those with large pension pots can pass on an extra £630,000 of cash (on death before age 75).
Those beneficiaries can spend that tax free. It’s incredibly generous in my opinion.

If this is correct it will prove to be a massive leap in the attraction of having a SIPP Pension .

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Budget: Pensions to get boost as tax-free limit to rise
Published
14 minutes ago

By Nick Eardley

BBC chief political correspondent
The total amount that workers can accumulate in their pension savings before paying extra tax is expected to be increased in Wednesday's Budget.
The final figure has not been confirmed, but people are expected to be able to save up to £1.8m over a lifetime, up from £1.07m currently.
The policy aims at stop people from reducing their hours or retiring early due to the tax charges.
Persuading workers to work for longer is part of UK plans to boost growth.
The chancellor could also increase the £40,000 annual cap on tax-free contributions to pensions, to £60,000.

Millennials are old. The most senior in this demographic cohort are now in their early 40s and many will have careers, mortgages, children and may be starting to plan for the rest of their lives.

Maybe they hope to follow in the footsteps of their grandparents and parents. Logging off work for good, they’ll dip into their pension pot and enjoy a holiday somewhere warm or finally take up that long-delayed hobby. I’m here as the ghost of retirement future to tell you that there’s a strong chance this won’t be happening.

According to Which?, an individual or couple respectively need £19,000 and £26,000 a year to enjoy a “comfortable retirement” comprising regular short-haul holidays, hobbies and the odd tipple. However, the problem facing millennials is that their private, workplace and state pension pots are all likely to be less full than those of previous generations.

The rule of thumb with pensions is that it’s best to save as much as you can as early as possible in order to make the most of the eighth wonder of the world, compound interest. But try applying this guidance during a financial sector crash, a pandemic and a cost of living crisis. It’s not surprising that only about a quarter of millennials have done “a great deal of planning or thinking” about retirement when it costs so much to live in the now.

Exorbitant rents and house prices have caused delays in saving for retirement, and pose an ongoing threat to financial stability in the future. According to the comprehensive Resolution Foundation intergenerational audit, the proportion of millennial family units living in the private rented sector at the age of 30 is more than three times the rate of the baby boomer generation – and they are paying more. After retirement, lifelong renters will need an extra £9,000 of annual income to cover costs compared to homeowners.

Britain's economic inactivity problem misdiagnosed, says new report

Tomorrow’s Budget is widely expected to focus on economic inactivity, which is now one of Britain’s biggest economic challenges
The UK has 516,000 more economically inactive people aged 16-64 than pre-pandemic. Only three OECD countries have seen inactivity increase more than the UK
A new Centre for Policy Studies report tempers two common explanations for this rise – that it is overwhelmingly about the elderly, and/or the strains on the NHS
The report finds that inactivity among the elderly appears to be driven more by finances than by health. It argues that raising or scrapping the pension lifetime allowance, whose value has more than halved in real terms since 2010, would keep more people in the workforce – including in the NHS

Above post should read 360 YEAR lows

Thousands of pensioners were caught in exactly the same trap as SVB Bank.

Namely those in charge, bought U.K. and US government bonds, when the yields were at 360 lows and the bonds were sky high.

The 3 year old boy next door, could spot that when rates moved higher , massive losses were absolutely guaranteed .

If nothing else , read this article before you ever trust a life company , or personal financial advisor.!,

https://www.theguardian.com/money/2023/mar/11/pensions-retiring-losses-ftse-aviva-value

Not strictly pension news, but very interesting.

? https://www.embroker.com/blog/startup-statistics/
?
?Following on from the collapse of SVB Bank, and it’s U.K. rescue by HSBC, this article is well worth a read. Some of the data is going back a year or two which is why it’s so interesting.
It’s all about start up failure rates , particularly in the Tech industry.
One can see the tidal wave of cash that poured in during the period of low interest rates.
Now rates have risen, its much, much, harder to raise fresh capital to

A: Start a new company
B: keep any loss making company going.

Hence my belief that even with the bank being saved , a very large proportion of the lending book is rubbish, as the Start ups keep drawing down cash , making losses, and then going bust,( without continuing lumps of new capital being injected in ).

The job losses recently experienced by the likes of Amazon, and Twitter, look to be spreading down the line.

This may help the remaining companies that are nimble, well financed, and growing rapidly.
Triad Group Plc is the SME ( not a start up ) I am hoping will go on to grow extremely fast, vacancies should at least in theory, be easier to full, going forward.

As one can see below , VC fell 35% last year and are predicted to fall savagely this year as lending rates climb even higher.
That’s a massive squeeze, meaning it’s going to be impossible for perhaps 70% of loss making start ups, to continue trading.

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In 2022, global venture funding totaled $445 billion, per Crunchbase. That's a 35% year-over-year decline from the $681 billion startups raised in 2021, representing a steeper pullback than was experienced after the 2008 financial crisis or dot-com bubble, per Preqin data reported by Bloomberg.9 Jan 2023

Bill Ackman

@BillAckman
·
Follow
The gov’t has about 48 hours to fix a-soon-to-be-irreversible mistake. By allowing @SVB_Financial to fail without protecting all depositors, the world has woken up to what an uninsured deposit is — an unsecured illiquid claim on a failed bank. Absent @jpmorgan @citi or… https://twitter.com/i/web/status/1634564398919368704…
4:38 PM · Mar 11, 2023

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Billionaire Bill, is spot on , when trust and confidence disappears the game is up.

Britain's biggest high street banks have been given a 24-hour deadline to rescue Silicon Valley Bank UK (SVB UK) from collapse as the Bank of England prepares to place it into an insolvency process.

Sky News has learnt that major UK lenders including Barclays and Lloyds Banking Group are among the parties to have been approached by the board of SVB UK over the weekend to see if an emergency takeover deal can be struck

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Last time round the U.K. government and the U.K. population took the hit.( Banking crisis 2008).

Since then ,the obligation has been handed over to the banks themselves , and those with bank deposits. ( snatching back money you thought was safe on deposit.).
Thus it appears they will all have to chip in to save one of their own. That in my view is the correct way forward. Bank dividends might have to be cut. The banks and government know fair well, if it spreads this week through the banking sector and wider financial system the game is up. America will of course have to lead the way, if not, Wall Street will resemble skid row rather rapidly.

This has been quite a week for bonds ( U.K. gilts , Treasuries), after the events across the pond in America . SVB went bust , the second largest US bank to do so.

The bank went bust because it bought bonds when rates were low and took a massive hit on the price as rates went up.

It could get away with that, had it not been made a forced seller , of those same bonds, as depositors ran for the door.

The worldwide financial community , right down to your own personal advisor, push bonds as a safe investment, ( over equities).

They are not , in my personal opinion, they are a rubbish asset class to hold in a personal pension.

More so because yields, are generally tiny on government bonds, junk bonds are often just that : JUNK.

An added risk is that at some stage a high ranking country defaults, that would ripple around the world, resulting in catastrophic bond markets.

As I have previously mentioned, it’s all change in the procurement world, Triad Group Plc will in my opinion thrive being an SME and having the benefit of a premium stock market listing.

This talk next week should be interesting.

Transforming Public Procurement - how the new Procurement Bill will affect you
16 March 2023, 02:00 PM
4:00 PM EET
Replay Planned

Lucy Sydney
Head of Strategic Relationships, Procurement Reform, Cabinet Office

UK Chancellor of the Exchequer Jeremy Hunt is planning to reform pension tax rules in his budget next week in a bid to cut the number of doctors quitting the National Health Service.

Hunt is preparing to alter the design of a system which mean doctors face higher tax bills when their pension pots grow beyond certain limits, two people familiar with the matter said. The chancellor is concerned the rules are fueling drop-outs from the NHS, with senior doctors retiring earlier or reducing their workload to avoid the charges, according to the people, who requested anonymity discussing unpublished plans.

The changes would help the government tackle labor inactivity — one of Hunt’s top priorities in the March 15 set-piece as he seeks ways to boost economic growth. They would also contribute to addressing a chronic staff shortage in the NHS that’s left some hospitals near breaking point after three years of a pandemic and a brutal flu season. In the 12 months through June, more than 40,000 NHS employees in England left the service.

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Umm, looks like the pension lifetime limit is going to be raised from just over £1M.

We will have to wait and see.

Public sector insight week
14 March 2023

The Art of Optimizing Test Automation. Best Practices and Lessons Learned
14 March 2023, 11:00 AM
1:00 PM EET

Mr Venugopal Botla
Test Automation Practice Lead, Triad Group Plc

These are the best all time fund managers

The compound growth rates varied, as did the time spans .
As a rough guide they achieved about 20% compound over 20 years.
They all had their ups and downs.

Warren Buffett
Benjamin Graham
Allan Gray
Sir John Templeton
George Soros
Carl Icahn
Peter Lynch
Ray Dalio
Michael Steinhardt

My target is 30% because the bar should always be set high.

Don’t accept average returns, from average pension managers.
You could use a monkey with a pin yourself, and get the same results.

Over-50s who retire early will need to return to work to top up their pension pots, Bank of England policymaker warns
Retiring at 55 means retirement savings would need to ‘match your longevity’
Early retirees would find it ‘more difficult’ to return to work after several years

By CALUM MUIRHEAD CITY REPORTER FOR THE DAILY MAIL
PUBLISHED: | 00:24 GMT, 8 March 2023

Over-50s who retire early will need to return to work to top up their pensions pots, a senior Bank of England policymaker has warned.

Catherine Mann, a member of the Bank’s Monetary Policy Committee, which is responsible for setting interest rates, said those retiring at the age of 55 would need to make sure their retirement savings would ‘match your longevity’.

She added that early retirees would also find it ‘more difficult’ to return to the jobs market after several years.

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My view

Life is short, if you want to retire at 20,30,40, or 50 and you have confidence in being able to support yourself and family, then do it.

Those who are smart might like to research tiny low cap stocks that can potentially grow at 30% a year.

It takes a surprisingly short time to accumulate massive wealth from a small outlay.

One tip we can take from the government though is , innovation.

Stop this crazy policy of paying in pension subs from 16 to 68 , to only then receive a sub standard pension.

Digital Leaders public sector insight week.

ChatGPT: The ultimate crash course for business success

15 March 2023, 02:00 PM

4:00 PM EET

Replay Planned

Henry Grech-Cini

Senior Consultant, Triad Group Plc