Why is everything so complicated?

Imelda

Hi everyone,

Just a bit of a rant really. Last night was one of my bi-monthly "sort out" evenings where I go through all my letters, bills etc (I quite enjoy it!). I was sorting through my pension things (since being on this site I have actually started paying attention to it) and have realised that I should have been claiming back more tax from my AVCs. Who knew eh?? The wording of the literature I have received is bamboozling, it appears that I should also do a tax return (where do ya get one of those? I thought they would send it to you). And should I opt in or out?!? TBH it panics me, I could be wasting so much money and have no idea.
Secondly, my block of flats is trying to either bulk extend our leases or buy the freehold. A whole other can of worms.....an expensive can at that.
Now I would judge myself to be pretty intelligent, I have a degree, various other qualifications and work within investment banking (so the pension should be easily understood) so if I can't get to grips with it how does everyone else? For example, my parents, left school at 15, do manual jobs and have no access to places like MSE, as far as I know the only information they have ever had was from a pension salesman, surely this must lead to people being ripped off all the time? I definitely think there should be some financial planning lessons at school and that companies should be forced to put everything in black and white. Sorry for the rant, I think I am just feeling a bit overwhemed by it all!

EagerLearner

I agree with you there Imelda - for those who have access to a pc and are interested enough in their finances, it's great to visit this site but for those who are less pc literate, or less knowledgeable about their finances then this is where the sharks make their money. Like you, I am financialy aware, educated and also try to help family and friends - even when we applied for our mortgage, I told the IFA which was the best deal (due to my research on charcolonline and other sites) - and he agreed!

There's hope if every person on this site helps others be more aware but even more hope if schools provide some sort of lessons on finance - especially given the level of debt in the UK is now the highest in Europe I believe.

Macduff_3

I agree with the bit about the financial planning lessons at school. My money problems started when I left home to go to uni and did not have a clue about how to manage money and credit. Some form of budgeting lessons and advice on how to cope with credit and large sums of money would have been useful!

lynzpower

Could not agree more

EagerLearner

Actually, one of the most useful lessons I got taught at age 4 was 'the money tree'... my grandad took me to the garden and gave me £1 to plant, I was eccstatic with imaginings of a fully laden tree anytime soon... naturally after a few weeks/months the lesson soon sank in... I plan to use that again someday ;o(

grade15

For me, I do my 6 month credit check with all my money issues..and look or prepare deals for when they need renewing/remortgage/re-insurance....
I think for our generation, we should educate our parents..as they mostly probably are getting ripped off..
I always rant at my dad about his finanical issues..sometimes it goes thou and sometimes it doesn't..
but never giving up..saving money however little is better than nothing..

reason y everything is complicated cos they want to rip us off but doing it legally..!!

calleyw

We are becoming a country of have and have nots.

And that is having a computer and not having one.

Granted the internet does have its dark side but it is so full of info that we who are computer savvy are being subsidised by the people who don't. As we get all the good deals and those with out a computer don't.

Personally I feel that is unfair the same deals should be offered to all.

I have family who have no interest in computers and don't own one. But they miss out offers and deals as they can't get them as they don't know they exist.

Yours


Calley


PS when I mean computer I do of course mean one with a internet access.

Floss

Re your pension question....check with the pension companies - they "should" be able to tell you whether you are better in or out. My SERPS is with CIS & they advised me which option to go with a couple of years ago. Have recently asked again wit hthe changes in pension rules & am waiting for an answer

Iriahm

RE your pension. can you ask colleagues at work who perhaps understand it better? is there an HR person who is the pension liason for staff? this information should be free to you too!

sorry, can't offer anything about your flat as we don't have the leasehold thing in Scotland...

good luck

Imelda

Thanks Floss,

I have an appointment with my IFA for september and will try to sort through the mess that is my pension paperwork before then. The trouble is that my payslip says that I am contracted into S2P (I think that's what SERPS is called now) but I am sure one of the many bits of paper I have says that I may have opted to contract out but my NI payments will remain the same, however the government will pay the premium (1.6% I think?) into my company pension at the end of the tax year. I checked my supposedly up to date online pension statement and it shows no such payment (it actually shows no payments whatsoever, I have emailed them for an explanation). There is just not one bit of paper which tells me how much I will be paying in each year, just lots saying how much I can expect to get out (but only if the fund grows at 7% and interest rates are 6% when I retire in 34 years time, mmmm shall we let a monkey throw a dart, I think he'll be more accurate).
At the moment I just don't feel confident enough with my own finances to be able to help my parents out, I have done all I can with things like car insurance (but my Dad still heads straight out to his local broker) and changing current accounts (their faces, it was like I had asked them to sell their first born) but I am fighting a losing battle.
As for the tax return, all of my colleagues have been busily filling theirs out this week, I haven't been sent one, and I'm not sure if I need one. I get taxed via PAYE and had no other income last year (except about £3 in interest). Just concerned as I can't have any blot on my financial record as it could put my job in jeopardy.

Johnhowell

Imelda,
With regards pension contracted IN or OUT - it seems that recent company pensions are Contracted IN for S2P where as the older ones are Contracted OUT.

I have been advised to Contract IN so to receive the S2P top up on the basic State Pension as this can make a significant difference in weekly pension take home.

Regards,
John