Immediatelt Vesting Pensions

klondyke

Was further back than 2003 and I think it worked out to nearer 12%, which if you recall interest rates at the time, was excellent. Also the idea of discount brokers is that they split commission with customer, so, yes, SL will quote the same and give you nowt back.

Like I said, though, horses for courses; not recommending it for everyone, particularly as the rates aren't as good now. Was merely responding to the original question as to whether anyone had heard of Immediately Vesting Pensions or dealt with them. The main point is that the packages by that title are just that - ie for immediate vestment - not proper stakeholders, though rules don't permit having a stakeholder as well.

As Hansi has reiterated, it depends entirely on your age and tax position (and current rates) whether it's worth doing.  You are, in effect saying the same, but it feels a bit like being smacked on the wrist.

People interested in proper stakeholders or pensions should avert their eyes from this thread, but I do feel it is wrong to suggest HL are 'poorly advising' people who decide to take them up. They are mainly execution only but their information is a lot clearer than many companies. (For that reason we don't take up many of their offers ;D)

PS mr klondyke is 70, but doesn't want everyone to know that - but I suspect he's not alone amongst people of that age in holding out on taking annuity on main pension until he has to at 75 (which, with luck may change). If he snuffs it before 75, kids will get the lump sum which is in trust - if he has to take it, there's more IHT headaches to consider. (Yes, I know, another thread/story)

So a little smidgeon of extra income from an IVP, is not such a wicked thing, n'est ce pas?

dunstonh

If it suits you (or Mr K in this case), that fine. I dont know enough about you to say any different. However, the thread was beginning to take a steer towards making IVP look very attractive to people who wouldnt be aware of the alternatives. Indeed, there have been references in other threads from people thinking these suited them when clearly they didnt. Many people on these boards do not take advice and will read the thread and act upon it thinking they are doing the right thing. In reality IVP is a minority use product to cover a niche need.

If HL are (were) offering these on execution only. Therefore there cannot be any bad/good advice issues as no advice is given. Thats why they discount things as they are not responsible for the suitability of the product. There is no cost for advice.

If it had been a mainstream product, we wouldnt be having this chat. I'm just posting to put a few warnings on the record for others that browse this thread on here or on google.

klondyke

Yes, I take your point that showing your extensive knowledge together with your footnote could be useful

And throughout the thread, even those of us who have done it have been reiterating 'take advice', 'not necessarily for you' etc, etc.

I don't usually get stroppy in this forum but I get irritated (sorry ;D) when I see 'experts' assuming that amateurs are incapable of reading, trashing what is being said and accusing other companies of bad advice - when, as you have admitted, you don't know the individual circumstances.

Fine to make the generalisations you have made but not to libel other companies without justification. (I have no connection with HL other than as an occasional client.)

Therefore there cannot be any bad/good advice issues as no advice is given.

Quite. Still, at least that's a turnaround from

However, you should perhaps consider that you have received bad advice from HL

They do offer an advisory service if required, but generally their printed information is straightforward, particularly, as it happens, with IVPs - and let's face it, they must make more commission out of standard pensions and stakeholders so would prefer to sell those.

Don't forget that you can still have 'multiple pensions' by taking out an IVP every (any) tax year, with certain exceptions, so the smidgeon of income can become multiple smidgeons.

Still, to be honest, my main gripe was - and I could be completely wrong - your posts came over as being from someone quite young who had not recognised the possibility of anyone being over 65 - or if they are, reading this site ???

Now that comes with experience ;D

dunstonh

I don't usually get stroppy in this forum but I get irritated (sorry ) when I see 'experts' assuming that amateurs are incapable of reading, trashing what is being said and accusing other companies of bad advice - when, as you have admitted, you don't know the individual circumstances.

Fair enough but you should also be aware that amateurs that dont know what they are doing will be reading these threads and may take action that may not be appropriate to them.

It was such a thread elsewhere from someone that had read this thread that prompted me to point out what may seem simple to you but unknown to others.

They do offer an advisory service if required, but generally their printed information is straightforward, particularly, as it happens, with IVPs - and let's face it, they must make more commission out of standard pensions and stakeholders so would prefer to sell those.

Commission is higher on immediate vesting pensions.

Still, to be honest, my main gripe was - and I could be completely wrong - your posts came over as being from someone quite young who had not recognised the possibility of anyone being over 65 - or if they are, reading this site

That was not the intention but you need to be aware that this forum is called "over 50s money saving" not "over 60s money saving". Indeed the age of the person that drew my attention to this thread was 52 and he was considering IVP as an option because of this thread. I could reverse your comments and say that you have come across as someone who assumes everyone reading this section is over 65.

Before I had posted, there were no warnings apart from one from hansi which said "Take professional advice first but I reckon it's a good deal. " Eager amateurs rarely take professional advice and use forums like this and the daily mail to work out what they think is best for them.

I'm sorry that you feel irritated by what I posted but this thread did need some balancing out with the negatives of IVP as readers were getting a biased view

derekamr

I reckon these IVPs are a scam.If you die you lose the capital invested,your spouse or heirs get nothing.I f you survive,it takes years before you make a net profit,especially after you take inflation and tax into account

dunstonh

I reckon these IVPs are a scam.If you die you lose the capital invested,your spouse or heirs get nothing.I f you survive,it takes years before you make a net profit,especiialy after you take inflation and tax into account

It doesnt make them a scam.

If you get annuity with a 10 year guarantee and get 10% equiv return pa, then your capital will be returned dead or alive.

The things you mention are relevant to be considered and if acceptable then thats fine. I dont know what the stats are but i would estimate that far more of these are bought without advice than with.

derekamr

Unfortunately the only guarantee you get is that if you die the annuity ceases and the insurance company collects the balance.

dunstonh

Unfortunately the only guarantee you get is that if you die the annuity ceases and the insurance company  collects the balance.

Not if you select a 5 or 10 year guarantee. If you die in year one and have a 10 year guarantee, 9 years worth of payments will continue. Or you can select a varying degree of joint life options.