Pension Schemes - rip-off costs

bigfreddiel

sunday times - 12 feb 2012 - money section - page 4

sharp practice by insurers slashes pensions by 86%

if you happen to be retiring in a boom period insurers cut the annuity rate

cancer victim with 3yrs to live with £140k pot offered £3,600/year - after complaining he got £26,000/year and £37,000 lump sum

Note - he had to complain - now that cannot be right.

and this attitude seems to be rife in the finance industry - and that includes ifas, fas, banks, insurance companies, estate agents, car sales people, and so on if they're selling you're the victime - fight for your deal - not theirs.

just a thought

fj

dunstonh

sharp practice by insurers slashes pensions by 86%

Nothing to do with the recession then and people cutting costs.

cancer victim with 3yrs to live with £140k pot offered £3,600/year - after complaining he got £26,000/year and £37,000 lump sum

That has to be misreporting or a complete misunderstanding by the report. Chances are it was something like a pre 1988 RAC with defined terms which were not as favourable as those available on the open market using impaired rates.

and this attitude seems to be rife in the finance industry - and that includes ifas, fas, banks, insurance companies, estate agents, car sales people, and so on if they're selling you're the victime - fight for your deal - not theirs.

Boring.....

bigfreddiel

dunstonh wrote: »

Nothing to do with the recession then and people cutting costs.



That has to be misreporting or a complete misunderstanding by the report. Chances are it was something like a pre 1988 RAC with defined terms which were not as favourable as those available on the open market using impaired rates.



Boring.....

absolutely correct - its the newspapers just scaremongering and mis-reporting the facts - or it was the customers fault - no cahnce of the financial institution getting things wrong now is there?

cheers

fj

Velcro_Hotdog

bigfreddiel wrote: »

sunday times - 12 feb 2012 - money section - page 4

sharp practice by insurers slashes pensions by 86%

if you happen to be retiring in a boom period insurers cut the annuity rate

cancer victim with 3yrs to live with £140k pot offered £3,600/year - after complaining he got £26,000/year and £37,000 lump sum

Note - he had to complain - now that cannot be right.

and this attitude seems to be rife in the finance industry - and that includes ifas, fas, banks, insurance companies, estate agents, car sales people, and so on if they're selling you're the victime - fight for your deal - not theirs.

just a thought

fj

In another article about the same subject it says after shopping around he got 26k plus lump sum.

Not very well written but even so the message is clear........shop around for your annuity or lose money!

When he went on the open market he found that offer was 86 per cent less than the deal he eventually accepted of £26,000 a year and a £37,000 lump sum.

http://www.express.co.uk/posts/view/301805/Pensions-slashed-in-3bn-rip-off-

dunstonh

So, the figures produced on the non medically underwritten plans (based on clean health life expectancy) were lower than personalised figures based on his circumstances, which involved a more specialist plan underwritten with his full medical details indicating a short life expectancy. Goodness. What a rip off.

I am now going to write to the papers saying its a rip off that my car isnt as fast as a Ferrari despite both of them being cars.

There are some planks out there. Not sure it is the people that write the rubbish in the media or the people that believe it.

magpiecottage

dunstonh wrote: »

There are some planks out there. Not sure it is the people that write the rubbish in the media or the people that believe it.

I would hazard a guess that it's both.