Mis selling of pension

Paul_Herring

looksliketrouble wrote: »

It used to be a very good pension although expensive (about £350 a month)

No, really, that isn't expensive. Not in the slightest. I'm paying more than double that into my (personal) pension. Plus a 3.6% contribution from my employer.


When you finally find out what you'll be paying, and what you'll be getting, I suggest you put what you're paying into one of the calculators intended for private sector pensions, and find out what it will get there to compare.

For example a 23 yr old male expecting to retire at 55 just starting to pay in £350 a month into a private pension today, with an employer contributing 3%[2] can expect to receive a pension of £9,500 a year in today's terms.[1]

I'm sure the police scheme is a lot more generous.

[1] These numbers ignore inflation - what should happen in real life, is that £350, the gross pay (thus the 3%) and the end fund should increase proportionally at the rate of inflation such that the end result is an amount of money that is the equivilant of £9,000 today. Note that I accept this is a guess, but it at least gives ballpark figures.

Edit : [2] I just realised I didn't state what the 3% was 3% of - I think I assumed, for reasonable comparison, a 'Pay Point 2' for a Constable in 2012 (reasonable expectation for someone with 2 years service) and used £27,500.

ViolaLass

As a teacher, I am regularly informed by my union and the media that I should be unhappy about the new pension arrangements, that they are bad.

It's only because I'm financially savvy that I realise that while it is a less good deal than it was (in some respects) it is still a good one and I'm happy with it.

I imagine the police are being told the same things as I am.

atush

ViolaLass wrote: »

As a teacher, I am regularly informed by my union and the media that I should be unhappy about the new pension arrangements, that they are bad.

It's only because I'm financially savvy that I realise that while it is a less good deal than it was (in some respects) it is still a good one and I'm happy with it.

I imagine the police are being told the same things as I am.

But presumably are less savvy?:D

atush

looksliketrouble wrote: »

We've been told by our employment reps not to bother asking at the moment as they cannot give us an answer as they do not know what the outcome is as of yet.
We have just had a pension statement from our providers but it is based on the old system so therefore means nothing

Wrong, it does mean something. It means that the years you ahve accrued under the old plan are still there on the same terms. Only new years (in the new scheme not before) will be on the new terms.

You fail to understand, you were never 'sold' a product. you were Given a scheme that is no longer affordable so they are trying to make it affordable for the long term. The alternative would be to have no FS or CA pension at all.

atush

feesarefare wrote: »

Think my original post appeared to be spot on.

Correct, as far as I can see.

dunstonh

doughnutmachine wrote: »

i can't see how the OP requested to be insulted in his first post? if someone comes to your office asks a question that isn't sensible do you insult them as well?

I have turned away people in the past who rush to judgement without knowing the facts and go around making accusations unfairly. I dont want to deal with that type of person.

Asking questions is a good thing and should be encouraged. Jumping down the mis-sale route when you acknowledge you do not know about the subject (ignoring the fact it cant be mis-sold anyway) is something I feel indicates poor character. Seeing such allegations made by someone in the police force even more so as you expect someone required to investigate things as part of their job to keep an open mind and base their opinions on facts uncovered.

doughnutmachine

dunstonh wrote: »

I have turned away people in the past who rush to judgement without knowing the facts and go around making accusations unfairly. I dont want to deal with that type of person.

Asking questions is a good thing and should be encouraged. Jumping down the mis-sale route when you acknowledge you do not know about the subject (ignoring the fact it cant be mis-sold anyway) is something I feel indicates poor character. Seeing such allegations made by someone in the police force even more so as you expect someone required to investigate things as part of their job to keep an open mind and base their opinions on facts uncovered.

yeah, i see that viewpoint. i suppose people just have to accept that with a pension scheme etc that the rules can just be altered if the trustees feel like it. with any other industry a contract has to be stuck too, but the investment industry can just make it up as they go along.

dunstonh

doughnutmachine wrote: »

yeah, i see that viewpoint. i suppose people just have to accept that with a pension scheme etc that the rules can just be altered if the trustees feel like it. with any other industry a contract has to be stuck too, but the investment industry can just make it up as they go along.

Pensions do get too much fiddling with in legislation. It is a risk of the tax wrapper that has to be considered. For something that requires long term planning, the frequent legislative changes are frustrating (except the state pension changes which are long overdue).

To be fair, the investment industry doesnt change the contracts and wouldnt be allowed to. It is HMRC and legislation that changes and you will find most contracts in any area make provision for legislation changes. Also, the pension on this thread isnt from the investment industry. It is effectively an arm of Govt and the changes are not to existing benefit obtained but to future benefit accrued and the cost of providing that (which is still vastly superior to anything the private sector can get on the retail market).

One of the downsides of this board is that it is a magnet for people who prefer to call mis-sale, often on the silliest things possible. It can be very frustrating to read thread after thread of allegations of mis-sale where there is no mis-sale. So, my comments may have been influenced by that and if so, I apologise. However, my sentiment on the issue is still the same that I do not like people calling mis-sale when they acknowledge they dont know or have the facts.

dunstonh

and thank god im no longer classed as an IFA

Totally agree

atush

doughnutmachine wrote: »

i didn't know insulting people was one of the services offered by an IFA?

well done to the people that actually gave a sensible answer to the OP.

given Duns doesn't charge here he isn't an IFA here, he is a member, just like you. Who has no problem with insulting other people on occasion. Pot calling the kettle black here I think.