Today I Learned The Members Of Def Leppard Have A Pension

I always scan news article about Def Leppard when they pop up but it's basically all information I've always known. Blabbermouth shares a new article from This Is Money where singer Joe Elliott discusses the band's debt and when they started earning "real" money. The biggest revelation here is that Joe explains that when the band signed their first album deal, their lawyer at the time insisted they set up a pension. That was pretty classy and smart of that lawyer. You never know how things will turn out. Obviously the members of Def Leppard don't need that retirement money, but more bands fail than make it big.

I will assume the word pension means something different in the UK than it does the US. I'll assume this "pension" Joe mentions is more akin to the American based IRA system, which is contributions allowed as long as one has earned income during the year. Incidentally the federal maximum contribution for Roth and traditional IRAs this year is $6,000 which is up $500 over 2018. Make sure you contribute and max that amount to get your full tax benefit. (And heck, since it's very early in the new year I might as well plug that the government has increased the federal maximum contribution for the 401k/403b as well to $19,000. Family HSA plans can contribute $7000. Again, contribute the max and enjoy that tax benefit. Set it, forget it and enjoy a lovely retirement).

Oh and if you're wondering, Joe isn't drawing his pension because he doesn't need to, natch!

Comments

[Him]

You are correct, Allyson. Roughly speaking, a pension set-up in the UK provides a percentage of salary . . . whether paid out by the state, by a company, or by a pay-in created by the employee. There are other versions, of course. But what Elliott is taking about squares with what you were thinking. I thank Sir HIM, my English friend, for the fact-checking on that. Best to go to the source.

The only addendum I would add to Allyson's sound advice for us on this side of the pond . . . make very sure that you are allotting the right amount for what you plan to do and how you plan to live (granting that no one knows for sure) once they give you the gold-plated watch (or a photo of one). Many long-standing "retirement" calculators are predicated on ridiculously out of date assumptions.