MSE News: 'Murky' pension practices to be tackled
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has it got you all vexed.
Perhaps what's got people vexed is you telling people that they have said something that they clearly haven't said just so you can then tell them that they are wrong.
BTW, does your final salary scheme allow you to take everything out as a single lump sum or does it pay you a monthly income for life?
If you think it's the former, then I'm afraid that you do need some lecturing. If you think it's the latter, then you need some different (but equally stern) lecturing.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.0 -
As things stand, I'm fairly sure that I would still have taken both my pensions as I have. But the issue with private pensions is totally different.You wouldn't expect all your final salary pension to be available in one cash payment, so why a DC pension?........
Why can't a private pensioner decide what is best for them, it is after all their pot.
You only have to read the other threads here to see how gross the fleecing with annuities is. Other options with pension pots have their own stings in the tail.......as far as I am concerned they all short change the retiree.
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As things stand, I'm fairly sure that I would still have taken both my pensions as I have. But the issue with private pensions is totally different.
No, not really.
People start a pension with the fundamental rules clearly laid out and still decide that saving during working life to get a regular income during retirement is worthwhile.
Yes, there has been ongoing meddling with the rules, much of it very unwelcome, but there has been more flexibility introduced along the way (three cheers for drawdown! The financial industry is at least being forced to come clean about how much of people's retirement pots they are trousering.
What I'd like to see now is -
1) A clear statement that the annual and lifetime caps will now increase with inflation.
2) A clear statement that PCLS will *never* be capped or taxed.
3) More flexibility for flexible drawdown (why don't Purchased Life Annuities count, etc.) and removal of the capped drawdown rate's link to 15 year gilts.
If you want changes, then you need to fully understand the current system and ask for sensible and achievable things.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.0 -
Why can't a private pensioner decide what is best for them, it is after all their pot.
I agree and apart from talking all the cash out of the pension wrapper I can pretty much do as I choose. Actually with the final salary pension I would be able to take most of the money out, it just wouldn't make sense.0 -
gadgetmind wrote: »3) More flexibility for flexible drawdown (why don't Purchased Life Annuities count, etc.) and removal of the capped drawdown rate's link to 15 year gilts.
Those are the big ones for me. The current rules are very inflexible in that they only seem to acknowledge pension income as being "secure". It's quite a common scenario now that people will buy an annuity solely for the purpose of getting to the £20k mark, even if the product is otherwise not what they would go for.
Withdrawal limits on capped drawdown is fine in principle bearing in mind the intended purpose of a pension, but the way GAD reviews work in practice can often be unfair and actually disruptive to what the person is trying to achieve.I work for a financial services intermediary specialising in the at-retirement market. I am not a financial adviser, and any comments represent my opinion only and should not be construed as advice or a recommendation0 -
By what laws of the universe can rules not be changed. Goalposts get moved everyday.gadgetmind wrote: »......People start a pension with the fundamental rules clearly laid out.........If you want changes, then you need to fully understand the current system and ask for sensible and achievable things.
As I have said, I fully understand the current system, so could you please explain the complications with a change from 25% to 100% lump sum.
My proposals benefit the retiree, how does that fly in the face of Money Saving Expert principles.
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Why do you believe your final salary & local government pensions are 'fit for purpose' when they have the same restrictions you have spent several pages (and listed again above) that prevent you accessing all of the 'pot' and accessing it whenever you want?
It doesn't make sense.
No response. I guess it is a hard one to answer.0 -
At maturity the pension wrapper would have done it's job, kept you putting by for your retirement. Once you get there, what's to stop other new wrappers being introduced to deter the squanderbugs.I agree and apart from talking all the cash out of the pension wrapper I can pretty much do as I choose. Actually with the final salary pension I would be able to take most of the money out, it just wouldn't make sense.
Like you, I have no great reason to turn down the index linked payments, but I'm not in a crap pension that shackles me to crap options of 27,000 shades of grey.
*If the proposals of a flat rate payment to all in retirement comes true, then there would be few benefit advantages or disadvantages to speak of. We are not talking about legislative changes to banking here, so not a great chance of loopholes in retirees favour methinks.
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*Edit...state pension0 -
At maturity the pension wrapper would have done it's job, kept you putting by for your retirement. Once you get there, what's to stop other new wrappers being introduced to deter the squanderbugs.
I'll most likely be doing it all DIY, apart from some reasonable fees the only people getting any money will be me and the tax man.0 -
Like you, I have no great reason to turn down the index linked payments, but I'm not in a crap pension that shackles me to crap options of 27,000 shades of grey.
So despite everything you've said, you're happy to have your own pension locked away until at least 55, but more likely until it goes full term between age 60 and 65 so you get the maximum return and you're also happy for your own pension to pay out a maximum of 25% and have the rest locked away for good.
Kinda undermines your whole position and makes absolutely no sense at all.0
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