Pensions

chucky

dunstonh wrote: »

There is a lot of misformation and myth in some of the posts in this thread. I dont want to give the indication that the pension tax wrapper is perfect, far from it. However, anyone reading some of the early posts in particular need to be wary about what they read

that happens more frequently than not in this part of the forum.

however, whoever does take advice from an interent forum/board like this shouldn't really be expecting to make the best decisions in their life...

StevieJ

dunstonh wrote: »

Pensions dont make or lose money. They are just a tax wrapper that contain your chosen investments. You also cannot lose the lot with most personal pensions (especially unit linked). No Personal Pension has gone tits up and the way they are structured under trust and most are ringfenced, they cant go tits up.

Hi Dunstonh straying off your patch good advice as usual but how does Equitable Life affair fit into this

http://news.bbc.co.uk/1/hi/business/7830548.stm

dunstonh

Hi Dunstonh straying off your patch good advice as usual but how does Equitable Life affair fit into this

They didnt lose the pensions. Just the guarantees.

I don't think its misinformation or myth when people relate their own experiences of people having received a pretty bad deal. These experiences are based on fact.

It is when they dont know what they are talking about.

A few months ago, R4 has a programme on pensions.The main synopsys was that 1% fees is eqivalent to all the tax rebate on contributions but always take enployers contributions.

And yes, they agreed, most pensions were a 'con' as they only filled the pockets of those selling them.

Thats just plain stupid. Savings accounts have higher charges than most pension wrappers. You just dont know what the net interest margin is. Whereas you do with pensions. To expect your investments to be done for free is ridiculous. That said, nothing is stopping you using direct investments which are cheaper for single premiums and ad hoc payments.

lemonjelly

dunstonh wrote: »

They didnt lose the pensions. Just the guarantees.



It is when they dont know what they are talking about.



Thats just plain stupid. Savings accounts have higher charges than most pension wrappers. You just dont know what the net interest margin is. Whereas you do with pensions. To expect your investments to be done for free is ridiculous. That said, nothing is stopping you using direct investments which are cheaper for single premiums and ad hoc payments.

Dunstonh I've read many of your posts with great interest on other boards. I genuinely find them to be some of the best examples of the purpose of such forums - genuine help/advice/information shared with people, with a hope that people learn. Kudos to you.

I think another thing which has changed with pensions is the mobility issue. Gone are the days of jobs for life/staying with a company for life. People move around more. I've been in employment full time for 11 years now - since graduating. I'm with my 7th employer (NB one job has been a 2nd job for 5 years now). I have engaged in pension schemes with employers where I have had the intention of styaying there for some time.

My current employer is part of the local government pension scheme (take THAT Donald tramp!). I'm in the process of transferring my funds from 4 other schemes to it. May I ask if there are particular issues I should be aware of? None of the transferring schemes are final salary I believe. Indeed 3 are standard life, & 1 is with an employer where I was only there 15 months.

dunstonh

May I ask if there are particular issues I should be aware of? None of the transferring schemes are final salary I believe. Indeed 3 are standard life, & 1 is with an employer where I was only there 15 months.

Not all schemes give you good value for the money being transferred. However, the LGPS is a good scheme and fair. As long as there are no guarantees on the old pensions then it would do no harm. LGPS require you do it within 12 months of joining though.

Thrugelmir

StevieJ wrote: »

Hi Dunstonh straying off your patch good advice as usual but how does Equitable Life affair fit into this

http://news.bbc.co.uk/1/hi/business/7830548.stm

I've left my accrued protected rights with the Equitable and receive a guaranteed 3.5% annual return on the funds. Treating it like a fixed interest fund in terms of my portfolio. I've left it there as maybe one day there'll be some compensation.

Equitable failed due to bad regulation. Similar to the banks now.

treliac

Old_Slaphead wrote: »

Given that the current state pension is hardly generous but likely to be reduced in future years, I take it that you're comfortable that today's relatively hedonistic & affluent society be further supported by future indigent generations.

I think I've made it clear that I am concerned for younger generations (self-interest too, with my own youngsters in mind), that they stand a chance of a fair future and don't bear the responsibility for a period of failed economic policy that they didn't contribute to.

I don't seriously suggest that people choose not to look out for themselves and for their own future. Indeed, I am deeply concerned about the culture of dependency and the cost to society.

When all is said and done though, it's worth considering how you can use your 'savings' for your own enjoyment before becoming too old and frail as those who have lived a life of dependency and have no money will end their days just as comfortably as those who have to pay for the full cost of their old age.

FWIW we, as a family, do not live an indulgent lifestyle - are sensible, cautious and take responsibility for ourselves.

It angers a great many of us to see how our taxes are spent. And I'm not speaking about the public sector here, though I'll concede that needs some rationalisation.

Old_Slaphead

treliac, I certainly concur with those sentiments.

We should all take personal responsibility to provide for ourselves and family. The state should only be used as an emergency backdrop to support those who've suffered misfortune and not as a default lifestyle option for the lazy and !!!!less.