MSE News: Ed Miliband attacks high pension charges

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  • dunstonh
    dunstonh Posts: 116,318 Forumite
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    LIBOR is a scandal that needs investigation and action. It has nothing to do with pensions.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    Moby wrote: »
    remember there are many people of different political opinions that read these boards

    Sadly, it's very hard to forget it at times.
    Consider the LIBOR scandal

    Why? Why consider this, and why consider unions and politics? None of these have much to do with investing wisely for your old age.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • SippTechie
    SippTechie Posts: 76 Forumite
    One analogy strikes me when I hear a politician blaming the pensions industry for charges of 4-5% p.a. when most of the charges in that situation come from the fund manager and apply regardless of whether the fund is held in a pension.

    It is like blaming all BP (maybe it would stand for British Pensions?!) franchises for the high price of fuel when a significant part of the cost in that situation comes from taxes imposed by politicians, and also not mentioning anything about Shell, Esso and other places where exactly the same charges apply.

    I'm looking forward to the day when I hear a senior politician in Government lobbying for fuel duty taxation to be cut from 58p to 10p a litre.
  • jamesd
    jamesd Posts: 26,103 Forumite
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    edited 16 July 2012 at 2:34PM
    They don't even all come from the fund manager. A lot of it is the financial transaction tax, stamp duty, of 0.5% on all UK share purchases. Much of the rest is the dealing charges and half of the basic 1.5% is just money to distributors who aren't doing anything at all to help an individual fund to grow in value. But the distributors can provide other useful services, so aren't free of value.
  • missile
    missile Posts: 11,684 Forumite
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    gadgetmind wrote: »
    .... the difference between a pension fund and a hole in the ground. Of course, some might argue that there isn't much difference. :D

    I like that one :rotfl:
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • RichandJ
    RichandJ Posts: 1,087 Forumite
    missile wrote: »
    I like that one :rotfl:

    Why ?

    Explain your reasons for liking it.
    It only takes one tree to make a thousand matches, it only takes one match to burn a thousand trees. As well, the cars are all passing me, bright lights are flashing me.

    Johnny Was. Once.

    Why did he think "systolic" ?
  • Moby
    Moby Posts: 3,916 Forumite
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    edited 18 July 2012 at 7:47AM
    dunstonh wrote: »

    Yet no-one sees the scandals apart from you.











    I have never seen any hidden charges in modern pension scheme. Notice how the article doesnt give any examples.




    .

    Hot off the press. A year long study by the RSA. Of course its all lies though!:)
    http://www.independent.co.uk/money/pensions/pension-pots-being-ravaged-by-hidden-fees-7953507.html
  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
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    Moby wrote: »
    Hot off the press.
    Hardly. Even the Daily Fail reported on this one back on the 4th July - two weeks ago.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • dunstonh
    dunstonh Posts: 116,318 Forumite
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    Moby wrote: »
    Hot off the press. A year long study by the RSA. Of course its all lies though!:)
    http://www.independent.co.uk/money/pensions/pension-pots-being-ravaged-by-hidden-fees-7953507.html

    Notice the lack of information or evidence presented.

    Also, it is a virtual reprint of something they published in 2010. So, they keep researching but fail to provide evidence.

    I suggest you read it again and look at the wording.

    For example it says "The RSA warns that an extra 2 per cent annual charge can result in a halving of pension benefit". That is fine. It is saying that under certain circumstances, 2% more can halve the pot assuming you use the same growth rates in all comparisons. It doesnt say they are charging 2% more. It throws the line in to make the speed readers or those that dont read it correctly think that

    It that says "After a year-long investigation into the pensions industry, the RSA said 21 out of 23 providers denied there were additional charges. " It doesnt name who the 2 are that dont but they could be pension providers that use unit trusts rather than pension funds. Pension fund AMCs are the TER. Pensions that use UTs have the AMC and the TER published. Plus platform pensions or SIPPs do usually have additional charges for things. OR they could be unbundled platforms where there is a platform charge and the fund charge is clean.

    It also says "But its investigation uncovered such extras as audit and custodial costs, and other hidden charges including taxes, stock lending fees and broking commissions". So, it is now classing taxes as charges.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    dunstonh wrote: »
    stock lending fees

    This one puzzles me as most funds do lend securities but they do it to generate additional income.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
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