Pensions Robbery Discussion thread, all viewpoints welcome!

[Deleted User]

They need to live in the real world. Today my dh got his letter re his state pension starting in 3 months time. It will be £177 a week, after working all his life from 16. Now who could live comfortably on that? Fortunately he has a private pension and we will be comfortable but what if we had taken the stupid course of not saving for retirement? The very idea sends shivers down my back. What wants to be poverty stricken in retirement? It is one hell of a dilema for younger people re choosing the savings vehicle but save they must, unless they want to live in poverty later. Getting older, well it happens to us all

yogibearlive

Thanks for the reply Dunstonh, Yes , you are correct. the Provider does say that guaranteed rates apply to the policy. Hindsight is a wonderfull thing..... I wish I had sold all my halifax shares before the big crash.......all 6000+ of them when they were over £10......on the other hand most of them I got free anyway.

jamesd

kittie wrote: »

It will be £177 a week, after working all his life from 16. Now who could live comfortably on that?

Me, easily, if I didn't have rent to pay. The proposed £140 a week would also be sufficient for me. But there are degrees of comfort and more would be nice.

kittie wrote: »

What wants to be poverty stricken in retirement? It is one hell of a dilema for younger people re choosing the savings vehicle but save they must, unless they want to live in poverty later. Getting older, well it happens to us all

Agreed!

dunstonh

Thanks for the reply Dunstonh, Yes , you are correct. the Provider does say that guaranteed rates apply to the policy.

In that case, you would expect the bonus rates to drop to tiny amounts. The real value isnt in the bonus rate but in the guaranteed annuity rate. For example, A guaranteed rate 50% higher than current open market rate would require any alternative to double in money (above the existing plan) just to pay the same level of income. Many people just look at the poor bonuses being paid and stop paying into them or transfer them elsewhere without realising what they are giving up.