Final Salary Pension Wound up.

Tel_4

Did I say these schemes are good?

No, I did not!

I said wait and see.

I am well aware of the arguments and reservations surrounding the funding of the PPF, as my profession demands that I do.

You are an IFA I, am a G60 pension transfer specialist for a large product provider.

Neither of us know at this stage how the PPF will perform, or indeed if the Govt will step in to close any funding shortfalls.

After all, Gordon Brown has raided final salary schemes to the tune of five billion pounds a year since 1997, he may feel he owes the pension community a few quid, and it may prove politically difficult for him not to throw a few quid back in the pot.

So, as I say, lets wait and see.

The fact is there will be a protection fund in place in April 2005, which is more than we have at the moment.

dunstonh

I'm sorry. Your posts gave me the impression that you saw these as being the answer to all the problems. Which is why i posted that I felt that they wouldnt be.

I may only be an IFA but i do transact £4 million of new premium business a year in pensions alone so I do feel somewhat qualified to offer opinion in this area as much as you do. At this stage, the PPF is more about opinions than substance anyway.

Your last reply suggests we are taking the same stance but have just worded it differently. The wait and see stance is the best one but I would just add that no-one should get their hopes up until more is known about the funding behind these schemes.

Gordons Brown tax credit removal has done far more damage than it ever did good. It would be nice to see him use some of it back on pensions. Indeed, the current pension "timebomb" shortfall estimates are not far off what he has taken from the pension funds. (then you can add in what the knock on effect it had to endowment policies and the with profits funds that many pensions and endowment policies invest in. Along with around 70 insurance companies which are no longer open for new business since Gordon Browns tenure as Chanceller)