What does the Chancellors pension revolution mean for us?

[Deleted User]

Thrugelmir wrote: »

Compared to what?

Higher return comes with increased risk. In retirement lost capital will be difficult to replace.

capital is lost when the annuity recipient dies. There are 44 ftse 100 shares this evening with a rolling yield of over 3%, the top ones having a yield of over 6%, yes there is risk of course but drip feeding into a variety of solid ftse 100 companies could well be the answer for some people. I did something similar in my husband`s sipp and capital value has risen a lot, the dividends alone are providing a very good yearly income

There are also gilts but the yield is pretty low at 2-3%, ultra security and capital retained

For those worried about managing as a pensioner than at least an annuity gives peace of mind wrt regular income. I am thinking that the annuity companies will soon be providing much better products

[Deleted User]

atush wrote: »

So you are volunteering to pay for them if they have to go onto benefits then? At least volunteer to pay for those on this thread?

I'll continue to encourage people to use the new free advice to make the best decision for their own LE. To make their money last the correct amount of time be that short or long. With your permission or without.

stop worrying about other people, you are definitely being patronising and you need to butt out of their business

DiggerUK

gadgetmind wrote: »

And the teeny added disadvantage that you have to pay tax at 22%/42%/62%/42%/47% on the money before putting it into said ISA.Personally, I'm rather glad that I've always ignored the pensions ignorati and that wife and I have healthy DC sums we can utilise in a few years.

As your signature says.....any bad advice you give is at least for free.
Seems that making up figures comes for free as well.
..._

rpc

kittie wrote: »

People who have `unasked for` empathy for others need to back off now and trust that people will, when pensioners, get what they deserve

Benefits paid for by the rest of us because they decided that a Lambo was a higher priority than a lifelong income?

rpc

kittie wrote: »

capital is lost when the annuity recipient dies.

No, capital is lost when it is spent. Once you have bought an annuity, you no longer have capital.

Linton

kittie wrote: »

capital is lost when the annuity recipient dies. There are 44 ftse 100 shares this evening with a rolling yield of over 3%, the top ones having a yield of over 6%, yes there is risk of course but drip feeding into a variety of solid ftse 100 companies could well be the answer for some people. I did something similar in my husband`s sipp and capital value has risen a lot, the dividends alone are providing a very good yearly income

There are also gilts but the yield is pretty low at 2-3%, ultra security and capital retained

For those worried about managing as a pensioner than at least an annuity gives peace of mind wrt regular income. I am thinking that the annuity companies will soon be providing much better products

At current gilt rates providing significantly better products would mean loosening the guarantees given by annuities. At the moment they are absolutely guaranteed barring some sort of armegeddon scenario. Something based on shares could not be. The situation is even more difficult with unlimited inflation linked annuities as they cannot exist without government backing.

ginny1011

Hi I have schizophrenia and was medically retired two years ago I am 44 I receive a annuity of £361 once a year can anyone please tell me if I can take a lump sum out My pension is worth about £10000

[Deleted User]

rpc wrote: »

No, capital is lost when it is spent. Once you have bought an annuity, you no longer have capital.

yes of course

lvader

rpc wrote: »

Benefits paid for by the rest of us because they decided that a Lambo was a higher priority than a lifelong income?

They could have just saved for retirement outside of a pension and bought the Lambo anyway or not have saved for retirement at all and bought a Lambo while they could properly enough it. Why would a pension saver be more likely to squander money they might need in the future?

[Deleted User]

Linton wrote: »

At current gilt rates providing significantly better products would mean loosening the guarantees given by annuities. At the moment they are absolutely guaranteed barring some sort of armegeddon scenario. Something based on shares could not be. The situation is even more difficult with unlimited inflation linked annuities as they cannot exist without government backing.

yes true but good for people to know that there are options. Also best to spread risks