MSE News: 'Pooled' schemes to boost pensions unveiled in Queen's Speech



  • Ken68
    Ken68 Forumite Posts: 6,825
    Part of the Furniture 1,000 Posts Energy Saving Champion Home Insurance Hacker!
    edited 6 June 2014 at 7:39AM
    With the present system, there must be a float, to smooth out ins and outs, so...a pool.

    I smell a bankers wheeze, with the usual commissions.
  • PensionTech
    PensionTech Forumite Posts: 711 Forumite
    I know from family history to expect to live to circa 75

    Yes - because looking at indirect relatives, or parents who were born 30 years earlier than you, or grandparents who were born 60 years earlier than you - is definitely a good way to estimate your own life expectancy.

    Life expectancy is on the increase and you shouldn't even take account of what the news says is the "national average", since that takes into account things like infant mortality - which skews the figures and doesn't apply to you, since you've already managed to live past adolescence.

    Here's a nice life expectancy calculator that's actually based on research. Fill in your details and have a look. If you really think that you're more prone to an early death than a lot of people who would fill in the same details as you on that page, then you can have a look at the distribution to try to work out where you fit in - for instance, if you think that you're probably in the 30th percentile for life expectancy among your peers, then look at the slider graph to work out the age by which the first 30% of people will have died.

    Obviously, nobody can predict with certainty how long you're going to live - but actuarial research is likely to be more accurate than out-of-date family history unless you have something like an inherited degenerative disease.
    I am a Technical Analyst at a third-party pension administration company. My job is to interpret rules and legislation and provide technical guidance, but I am not a lawyer or a qualified advisor of any kind and anything I say on these boards is my opinion only.
  • Pincher
    Pincher Posts: 6,554 Forumite
    To have £10,000 a year for 10 years takes £100,000.

    It takes a criminal genius to scare you into giving away £200,000 in exchange for £10,000 a year.
  • rpc
    rpc Forumite Posts: 2,353 Forumite
    Pincher wrote: »
    It takes a criminal genius to scare you into giving away £200,000 in exchange for £10,000 a year.

    It takes a person with a rather good crystal ball to work out how many years of retirement they need to cover. The median is around 20-25 so half will live longer, half will live less.

    £200,000 sounds not too far off the mark then.

    Nobody has to buy an annuity and if people refuse to make choices, that's their fault. Retirement paperwork has to cover the OMO in a prominent manner, yet how many actually make use of it?
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