MSE News: Minister admits millions 'don't have a clue' about pensions

pixwix

As the UK slides into 3rd-world status regarding pensions and care of the elderly - or to put it another way, as the rich get steadily richer and the poor can go hang...

I paid into pension schemes for over 40 years, only to have the goalposts moved with almost every change of government and a continuing series of financial chicanery. They now - neither govt nor occupational pension - can 'afford' to give me what I was led at the time to expect from my very real investment. What in effect I paid for through the nose, year after year of my working life.

I don't know how it's all going to end. But I do know one thing. If I were 20 years old, I wouldn't pay into any 'pension' scheme - not one penny that could be legally avoided. The money - these days - is far more likely to be used to finance current commitments rather than your investment. Assuming it doesn't quietly disappear altogether.

I'd find some other way of salting away assets for my future. There's not a single pension arrangement these days that can guarantee you're not going to be solidly screwed over at some time in the next 4 or 5 decades by bent politicians or criminal big business - or most likely both in cahoots.

Turnbull2000

pixwix wrote: »

I'd find some other way of salting away assets for my future. There's not a single pension arrangement these days that can guarantee you're not going to be solidly screwed over at some time in the next 4 or 5 decades by bent politicians or criminal big business - or most likely both in cahoots.

BTL seems the best bet by far these days. Buy at the right price, and you don't even have to put away your own money. Let somebody cough up instead.

Blobby8_2

Blobby8 wrote: »

Swansea 5/6
Cardiff 11/13
Norwich 8/13

Which explains why bookies dont ride bikes.

CLAPTON

pixwix wrote: »

As the UK slides into 3rd-world status regarding pensions and care of the elderly - or to put it another way, as the rich get steadily richer and the poor can go hang...

I paid into pension schemes for over 40 years, only to have the goalposts moved with almost every change of government and a continuing series of financial chicanery. They now - neither govt nor occupational pension - can 'afford' to give me what I was led at the time to expect from my very real investment. What in effect I paid for through the nose, year after year of my working life.

I don't know how it's all going to end. But I do know one thing. If I were 20 years old, I wouldn't pay into any 'pension' scheme - not one penny that could be legally avoided. The money - these days - is far more likely to be used to finance current commitments rather than your investment. Assuming it doesn't quietly disappear altogether.

I'd find some other way of salting away assets for my future. There's not a single pension arrangement these days that can guarantee you're not going to be solidly screwed over at some time in the next 4 or 5 decades by bent politicians or criminal big business - or most likely both in cahoots.

as a matter of interest how much did you pay each year and what pension do you expect to get for that?

RichandJ

CLAPTON wrote: »

as a matter of interest how much did you pay each year and what pension do you expect to get for that?

Stop bringing logic into things Clapton, it only upsets people.

dunstonh

I paid into pension schemes for over 40 years, only to have the goalposts moved with almost every change of government and a continuing series of financial chicanery. They now - neither govt nor occupational pension - can 'afford' to give me what I was led at the time to expect from my very real investment. What in effect I paid for through the nose, year after year of my working life.

40 years of investment should have seen significant returns as that period generally was a very good period for real terms growth. The only reason you wouldnt have as much as you expected is if you didnt actually pay much in or (the most common error) is that you didnt increase the provision with inflation.

If I were 20 years old, I wouldn't pay into any 'pension' scheme - not one penny that could be legally avoided.

Well, that is just silly.

The money - these days - is far more likely to be used to finance current commitments rather than your investment. Assuming it doesn't quietly disappear altogether.

You are not talking about UK pension funds as that doesnt apply. So, would you like to explain what it is you are talking about?

I'd find some other way of salting away assets for my future. There's not a single pension arrangement these days that can guarantee you're not going to be solidly screwed over at some time in the next 4 or 5 decades by bent politicians or criminal big business - or most likely both in cahoots.

There are plenty of schemes (indeed the majority) that do not have this potential issue. That does not mean that Govts of the past have not caused damage with their meddling. However, if you have that sort of paranoia then you may as well be fearing Martians landing in your garden and taking your pension away.

jamesd

One problem with the it can't happen argument is that the Argentine government did fairly recently confiscate private pensions. It currently looks unlikely to happen here but the future has many remote possibilities that might happen someday. Not that avoiding pensions is a solution, since investments outside a pension can be confiscated as well.

Loughton_Monkey

One thing that annoys me greatly is the 'false sentiment' that tends to go along with pensions. What I mean by this is that those who chose not to save for retirement are, by definition, getting old. But their 'sins' of not saving were committed when they were having a whale of a time in their 20's, same again in their 30's, and when they really earned well in their 40's but spent it all on Marbella holidays and if we are lucky, probably put £2,000 into an ISA when they were in their 50's.

Yes. They are now 'old', and trying to live on much smaller amounts than they are used to. It almost hits them harder than those who just didn't earn enough anyway. So why do we have sympathy with these people? Isn't is almost the same as failing to convict a wife murderer on sympathetic grounds because he is now a widower?

jamesd

We don't necessarily have sympathy with the people fitting that description. Rather we have a societal view that there's a minimum living standard that we don't want people to be below, so we make sure that they get at least that much, in part out of the thought that things might go wrong for us and we'd want some protection if it did. Then they get to spend an average of 22-25 years living on what society thinks is the minimum acceptable income. There are enough people on that income to be a tax strain that will increase significantly in the future but I still like a minimum income standard.

It is nice if it's not above my normal living standard, though. That's around £7,000 a year plus rent. The £140 a week proposal for a single person would be £7,280. Easier for a couple on twice that with some extra economies like shared heat and council tax bills.

Those who just didn't earn enough would be used to living frugally and might even be better off, if only because of the guaranteed income.

Paul_Herring

We are looking at ways to make pensions more accessible such as looking at having an iPhone app.

LOLWUT?

How on earth is having an iPhone app going to improve matters. Apart from giving the impression that they're "in wiv da yoof" merely by having an iPhone app that is.