Workplace pension safety/risk

remorseless

someone at work made me suspicious... I thought my workplace pension is 'mine' and my contributions stay 'mine'.

I understand like all investments, it may go up and down, however, regardless of the return, the balance is mine.

Can the government for whatever reason 'help themselves' to whatever balance there is?

alexmi

Yes, on the same basis as they can help themselves to some of our incomes, proceeds of house sales, investment interest etc, etc. Whether it is always a good idea to do so ins another thing, which governments are considering all the time in the budget.

HappyHarry

Can the government for whatever reason 'help themselves' to whatever balance there is?

No.

No more than they could help themselves to funds in your bank account.

They can, however, change the tax rules on pensions and other investments, which has happened in the past.

alexmi

HappyHarry wrote: »

They can, however, change the tax rules on pensions and other investments, which has happened in the past.

That's kind of what I meant but I was being glib with my answer. Although it is not unknown for governments to raid funds such as in bank accounts, e.g. in Cyprus. I doubt it would happen here but you never know.

remorseless

tax rules, and the lot, I understand...that makes sense.
I was referring to seizing any of the balance. Like if I have £50k and there's a financial crisis, they can't really go in and take £10k to help social benefits...

kidmugsy

remorseless wrote: »

tax rules, and the lot, I understand...that makes sense.
I was referring to seizing any of the balance. Like if I have £50k and there's a financial crisis, they can't really go in and take £10k to help social benefits...

You'll need to ask Mr Corbyn.

HappyHarry

I was referring to seizing any of the balance. Like if I have £50k and there's a financial crisis, they can't really go in and take £10k to help social benefits...

No, they can't.

As above,

Although it is not unknown for governments to raid funds such as in bank accounts, e.g. in Cyprus. I doubt it would happen here but you never know.

Southend1

remorseless wrote: »

tax rules, and the lot, I understand...that makes sense.
I was referring to seizing any of the balance. Like if I have £50k and there's a financial crisis, they can't really go in and take £10k to help social benefits...

If things were that bad that they need to do it, you'll probably be grateful that they do!

atush

The money in your pension will also be safe from means testing should you need those social benefits yourself. And would be safe from creditors.

It isn't save froo divorce (nor would your spouses be) as it is considered a marital asset to be pooled with the rest if you split.

Russe11

HappyHarry wrote: »

No, they can't.

As above,

They can and likely will do a bail-in some time in the future, how far away that is from happing is hard to predict.

What you can be sure of is that the current pound will finish at some point. Devaluing the currency can only go so far.

The banks could close on the Friday, all accounts over £75k get taxed 10% of the balance announced over the weekend, Monday morning you have less money.

There is no reason why any financial holding can not be claimed by the state, its not your money once you have lent iit to a third party.

Russe11

atush wrote: »

The money in your pension will also be safe from means testing should you need those social benefits yourself. And would be safe from creditors.

It isn't save froo divorce (nor would your spouses be) as it is considered a marital asset to be pooled with the rest if you split.

Creditors can have a claim against pension assets.

Otherwise it would be beneficial to just run up debts and move money under a pension wrapper and then go bankrupt.