Re: What happens to a private pension fund once you're dead?
- From: Ronald Raygun <no.spam@xxxxxxxxxxxxxxxxxxxxx>
- Date: Fri, 30 Jan 2009 09:45:44 GMT
JethroUK© wrote:
"robgraham" <rttgrahamwow@xxxxxxxxxxxxxx> wrote in message
news:K8qdnQxkKa2qkB3UnZ2dnUVZ8tzinZ2d@xxxxxxxxx
"JethroUK©" <reply@xxxxxxxxx> wrote in message
news:hBMfl.108016$2w.63063@xxxxxxxxxxxxxxxx
What happens to a private pension fund once you're dead? does it just
vaporise?
Like you've been plowing every spare penny into a pension fund for all
your working life, you retire at 65 and die at 66
Was that a totally wasted investment?
It depends on when you die.
at 66 ( a year into retirement)
it does sound like you lose all the money you put into a pension so it
doesn't sound like a good place to put money
i was thinking about joining company pension but i wont bother
i'll stick those savings under the mattress and try and spend it all
before i die :o)
The trouble is that you don't know when you're going to die. What
if you run out of money before you die? Do you opt for suicide?
You may find that to be a reasonable strategy, but it wouldn't be
to everyone's taste.
If everyone had to save for a retirement which lasts to age 110,
just because they *might* live that long, they would have to save
an awful lot, to the extent of reducing their pre-retirement
standard of living substantially. Think in terms of putting half
your life earnings on ice. That's why collectively we have
concluded that it's more efficient to club together in what is
effectively a kind of "death pact", in which we all save enough
for a retirement which lasts only up to (roughly) the average
death age. It means that if we do then live to 110, we still
keep on drawing the pension, which we effectively get for nothing,
because we only contributed on the basis of living to 82 (say).
Naturally, the downside is that if we die at 66 (or 81), then most
(or some) of our money stays in the pot to help pay for the pensions
of all those who survive beyond 82.
It's basically a gamble, but one which comes as close as possible
to being loaded in favour of - everyone. Heads we win, tails we
don't really lose, because we'll be dead and won't miss it. And
we needn't even worry too much about not leaving anything to the
kids, because if we want to do that, we should make sure we have
a separate additional fortune tucked away somewhere. Hey, they'll
get the damned house. Isn't that enough?
.
- Follow-Ups:
- Re: What happens to a private pension fund once you're dead?
- From: JethroUK©
- Re: What happens to a private pension fund once you're dead?
- References:
- What happens to a private pension fund once you're dead?
- From: JethroUK©
- Re: What happens to a private pension fund once you're dead?
- From: robgraham
- Re: What happens to a private pension fund once you're dead?
- From: JethroUK©
- What happens to a private pension fund once you're dead?
- Prev by Date: Re: What happens to a private pension fund once you're dead?
- Next by Date: Solo or Joint mortgage protection insurance
- Previous by thread: Re: What happens to a private pension fund once you're dead?
- Next by thread: Re: What happens to a private pension fund once you're dead?
- Index(es):
Relevant Pages
|
