I don’t trust the state pension to exist when I’m 67 (or early 70’s). I’m currently 29. Should I set up a SIPP?

[newlysavedgirl]

@loverintruth When I started in NHS my pension age was 60, it's now 67. Policing is a very different job physically and in terms of personal risk, so pension age should stay at 60(?) but I wouldn't count on it. By the time you get there state pension age could well be in the 70s

Retiring at 60, will you still have a mortgage and other financial commitments, eg, child at university?

Retiring at 67, how much good active healthy life do you have left?

If you can pay into another pension or savings for retirement, do it, it gives you freedom and options. Especially if you can't, or don't want to be a police officer in the future.

Get some independent financial advice.

 

[loverintruth]

@newlysavedgirl Sound advice and yes, 60 is still the pension age. Ideally I’m looking at earlier retirement like 55.

But aye you’re right. I’m going to speak to some sort of professional and get advice

 

[lalpulamte]

@loverintruth How long have you been in the police scheme and how much do you earn?

You may find that your projected police pension is pretty good even without the state pension. Thats not to put you off using a SIPP by the way.

 

[loverintruth]

@lalpulamte The projected pension is decent but I also don’t want to also spend a large chunk of my working - never know what the future holds.

I like the idea of relying on my S&S > SIPP >
Work pension > state

 

[lalpulamte]

@loverintruth Depending on how much you earn you might find that SIPPs are not the only or best route to look at. What is the age when you can claim full pension? Is it still 60?

 

[mirandaf]

@lalpulamte For Police CARE scheme, retirement is 60 years old.

 

[loverintruth]

@lalpulamte Yes, 60! But I’m hoping with other savings I can go for 55 (or earlier) and just take the slight cut to my overall pension when 60 rolls around

 

[lalpulamte]

@loverintruth You might want to look at ISAs rather than SIPPs. More than one reason for this - but notably the current age for drawing from SIPPS is 57 and might well increase. As you are really looking to fund some time from 55 to 60 it may be safer to go for something you know you can withdraw. Reconsider if you move to the 40% tax band, or once you've built a good balance in ISAs.

 

[jesuslover999]

@loverintruth U should have a SIPP regardless of state pension existing or not. Unless u wanna subsist in your old age and worry about bills

 

[raymonde99]

@loverintruth The answer I give to this important question is always the same.

Will it exist? Of course. Because people will vote for it to exist.

The key question is: will it maintain its value?
The answer eventually will have to be no. Based on manifold factors - the main one being the national debt.

Sooner or later the Chancellor will approach a plinth on live television - possibly around 2030, & he or she will say in word salad diplomatic speech ‘we’ve had a good run, but we can’t afford it, however I will freeze it at its current monthly amount.’

The masses will take this & will be grateful. In current times they wouldn’t be so understanding, but by then we’ll all be desperate & we’ll take it.

We’ll then go through years & possibly decades of nasty inflation in order to pay off the national debt. (If we don’t go to war or have a plague in the meantime).

The outcome will be that in the year 2050 yes you will get your £1000 per month pension. However, the value of that pension in 2050 money may be £500 or less.

 

[wmpratt]

@loverintruth If you can then yes definitely especially if you are a higher rate tax payer