ITV Big Pension Prog

mystic_trev

I'm sorry I couldn't have any sympathy for the bloke who'd bought himself a Steam train for his 40th Birthday, turned down early retirement, and now had lost his Pension - hardly typical!

dunstonh

I'm sorry but I didn't watch it. It was ITV so I took the guess that it wouldn't be factual and would be aimed at the lowest common denominator.

Debt_Free_Chick

dunstonh wrote:

I'm sorry but I didn't watch it. It was ITV so I took the guess that it wouldn't be factual and would be aimed at the lowest common denominator.

Amazingly, it was even worse than that!

Debt_Free_Chick

mystic_trev wrote:

I'm sorry I couldn't have any sympathy for the bloke who'd bought himself a Steam train for his 40th Birthday, turned down early retirement, and now had lost his Pension - hardly typical!

Although in financial terms, it may have been best advice not to take an early reduced pension, because of the penalty. So arguably, he was behaving prudently - but his prudent approach delivered no return.

What Jeff failed to highlight is that this was a flaw in the previous regulations. (Which gave priority to those receiving their pensions, if the scheme went belly up.) Those in receipt of their pension got 100%; those not receiving it got nothing. However, that has now been changed .... but Jeff either didn't know this or didn't want to "spoil" the sensational slant to his programme.

chesky369

I was also very disappointed, since it didn't tell me anything I didn't know already, except for the fact that actuaries used a kind of log-table book on life expectancy that had information which was ten years out of date. It didn't mention anything about the hugely increased sums that companies will have to pay to support the new safeguards. It also laboured the point that some companies took 'pension holidays' without mentioning that companies that didn't take them are still in pension deficit.

I also wondered about the information Jeff Randall gave to the young people towards the end of the programme who had just started their company pension. They thought they would be getting £ 15k - £18k p.a. on retirement but he told them it would be more like £2.5k - £3.5k p.a. Wondered what that was based on.

duncan32

Having heard about this programme I have started to worry, like many I suppose.

I currently put £35.00 a week from my wage and my employer puts a contribution on top of that.

I am thinking of reducing the amount that I put in to the minimum, so that I don't miss out on the company contribution. Then the difference, I'd add to overpaying my mortgage.

Then, when the mortgage is clear in my mid forties I would be able to put some savings together, or get a second investment property or something.

Does that sound like a prudent decision?

Duncan

EdInvestor

I was also very disappointed, since it didn't tell me anything I didn't know already, except for the fact that actuaries used a kind of log-table book on life expectancy that had information which was ten years out of date.

At least glad to hear the actuaries got some of the blame.They are in it up their necks IMHO in more ways than one, but have been very good at putting the blame on others so far.

EdInvestor

duncan32 wrote:

Having heard about this programme I have started to worry, like many I suppose.

The problems only apply to final salary pensions.

What kind of pension is yours?

duncan32

Oh, I don't think its a final salary pension.

To be honest, I couldn't say 100%, which I know sounds ridiculous. I'll check my pension documents when I get home tonight.

It is run by Scottish Widows, I do know that.

I've actually just found a brochure in my desk at work, but it is a generic one and doesn't state exactly what sort of pension that I have.....

Thinking about it, the more money I put into the pension the better tax relief I get, is that right? Apparently, the government pays in 22p for every £1.00 that I put into my pension (at the basic rate of tax). That sounds like something else that I don't want to miss out on by reducing my contributions, I suppose.

Really is something to ponder over.

Duncan

Debt_Free_Chick

EdInvestor wrote:

At least glad to hear the actuaries got some of the blame.They are in it up their necks IMHO in more ways than one, but have been very good at putting the blame on others so far.

But the statistics on life expectancy are compiled by the Government Actuary's Department - NOT the actuarial profession.