Pensions - My viewpoint after 30 years of contributions!

xlnt

Unless you're in a super job or work in the public sector I would think its pretty dam useless to start a private pension when you're young. I did 30 years ago with Equitable Life and have been shafted good and proper, I should have had expensive holidays and new cars than pay in what I did for a very small pension return now. Let the government sort it out when you're old and Gray, no point making the greedy insurance companies mega rich! :mad:

Velcro_Hotdog

Fantastic agrument their mate, give yourself a pat on the back.

Zelazny

The problem is that you only get out what you put in. If you started paying in a reasonable amount 30 years ago, but left it at that same amount, then it will be next to nothing nowadays. Just like if I started paying in £200 a month now and kept on doing so for 30 years. Inflation would erode that down to nothing. You have to keep increasing the payments as you get older, at least in line with inflation. And if you did this, then can you tell us how the value of the fund compares with the amount that you've paid in?

Acromion

The point of view you express is all too rarely heard, particularly on this board, but should always be remembered. Having said that, hard cases make bad law. To decry all pension providers because of your experience with EL is like telling people never to go on a cruise because of what happened to The Titanic. But I appreciate that's no consolation to you at the moment.

hugheskevi

Aim low and achieve

atush

Basically, those who went with pensions and got out before EL got into trouble did very well with them. But after the guaranteed anuity thing and they had to close things down, people have done worse.

If you start a pension when young, and increase contributions over the years rather than leaving them the same you will do well. But if you spend it on holidays and nights out and other things that aren't assest that increase over time you would ha ve been far worse off than with the little you have now.

moonrakerz

xlnt wrote: »

Equitable Life.......................... no point making the greedy insurance companies mega rich!

Don't let the actual facts get in the way of a good whinge.

EL went bust because they offered their (greedy ?) investors (trying to get mega rich ?) too much and couldn't meet the bill, when it arrived.

Had it come off and EL had actually become mega rich, their investors would have gained enormously in their pensions - would you have complained then ?????

dunstonh

I did 30 years ago with Equitable Life and have been shafted good and proper

Personal pensions didnt exist until 1988. That is 23 years ago. So, you must have had a different product. Probably a retirement annuity contract. You could not top those up after 1988. They were also paid gross and had to have the tax relief reclaimed via tax code.

So, we can tell from your post that you havent topped up your pension for the last 23 years at least and you are in a product that is around 30 years old and pretty obsolete (and has been for some time).

Is it any wonder you only have a small pension?????!!!!

Do you still have a black and white TV and drive an Austin Allegro?

Gatser

xlnt wrote: »

Unless you're in a super job or work in the public sector I would think its pretty dam useless to start a private pension when you're young. I did 30 years ago with Equitable Life and have been shafted good and proper, I should have had expensive holidays and new cars than pay in what I did for a very small pension return now. Let the government sort it out when you're old and Gray, no point making the greedy insurance companies mega rich! :mad:

As you are a NEWBIE.... I will be VERY nice!

Please tell me, Sir/Madam, Exactly how much in contributions did you make into your pension over what time period, and how much are you receiving in benefits from it now?
Unfortunately, I have had direct experience of some VERY nice people who pay in very little and (in ignorance) expect rather alot more out at the end. They do not link the two variables (Money IN & Money OUT)

Gorgeous_George

I'm with the OP on this one.

Pensions were great when rates of return were 10% plus. In today's low rate economy the saleman is likely to make far more than the customer. Unlike the customer, the salesman's profit is guaranteed.

I prefer to buy houses.

GG

dunstonh

Unfortunately, I have had direct experience of some VERY nice people who pay in very little and (in ignorance) expect rather alot more out at the end. They do not link the two variables (Money IN & Money OUT)

It is by for the most common of all the pension issues. People paying in £30pm for 30 years wondering why they are not getting back £1000 pm for 30 years in retirement.

Pensions were great when rates of return were 10% plus. In today's low rate economy the saleman is likely to make far more than the customer. Unlike the customer, the salesman's profit is guaranteed.

GG, I expect better from you. Unless you are being sarcastic and left the smiley off.