Opted out of work place pension

zagubov

Is there still time to opt back in? If so, you should. I'm sorry to say, but whoever advised you to cancel this pension needs a checkup from the neck up.

Malthusian

bigfreddiel wrote: »

Who is responsible for this ignorance on pensions?

The providers, the employer, IFAs, FAs, accountants, the government the education - schools, unis, teachers, or is it us, the poor old ignorant employee?

I can't answer your question exactly, but it did remind me of the old saying that "Stupidity is accidental, ignorance is on purpose".

Tangent, but yesterday one of my Facebook friends was moaning about having no pensions other than a small deferred pension (few thousand pa) in a taxpayer-funded defined benefit scheme. I considered posting a reply to tell her a) she got more in return for her contributions to the DB scheme than most of us could dream of b) she will get a State Pension, although who knows when and how much c) given a) the only thing she has to complain about is how little she chose to put into her own pension fund. But after turning over several possible replies in my head trying to find one that wouldn't offend both her and random acquaintances I gave up and stuck to my usual rule of only giving friends guidance about finance if they specifically ask for it. Who, I wonder, is now responsible for her ignorance - she or I.

edinburgher

I still haven't seen a coherent comment from the OP on why they don't like free money?

The original comment was along the lines of 'I've had some free money from different employers in the past and it's all too confusing'.

Honestly :mad: If someone offers you free money every month, you take every penny that you can get. Why the complete refusal to engage with the fact that one day you will be old and will be very glad that you did? Future you would punch present you in the face

zagubov

Malthusian wrote: »

I can't answer your question exactly, but it did remind me of the old saying that "Stupidity is accidental, ignorance is on purpose".

Tangent, but yesterday one of my Facebook friends was moaning about having no pensions other than a small deferred pension (few thousand pa) in a taxpayer-funded defined benefit scheme. I considered posting a reply to tell her a) she got more in return for her contributions to the DB scheme than most of us could dream of b) she will get a State Pension, although who knows when and how much c) given a) the only thing she has to complain about is how little she chose to put into her own pension fund. But after turning over several possible replies in my head trying to find one that wouldn't offend both her and random acquaintances I gave up and stuck to my usual rule of only giving friends guidance about finance if they specifically ask for it. Who, I wonder, is now responsible for her ignorance - she or I.

When I topped up my Teachers Pension, I bought a mix of Past Added Years and AVCs. The latter were terrible value but I took too long to realise it. I'm only buying Past Added Years now (managed to do it before they slammed the door on it). We spoke to an advisor who signed us up to both to start with.

I've no redress as we were clearly aware of Past Added Years when we bought them alongside the AVCs. The thing that infuraites me is it's somebody's job to sell the poor value products, but it's nobody's job to sell you other pension top-ups like Past Added Years.

If trade unions hired their own staff to discuss pensions instead of farming it out to private businesses with a vested interest in it, we might get more honest and neutral advice, and yes, I'd pay higher union dues to guarantee that.

Martin's right - financial know-how should be built in to the curriculum.

mangle101

edinburgher wrote: »

I still haven't seen a coherent comment from the OP on why they don't like free money?

May be that realisation has set in & I would assume that its very difficult typing whilst doing a double facepalm.

nicknameless

mangle101 wrote: »

May be that realisation has set in & I would assume that its very difficult typing whilst doing a double facepalm.

Or maybe the very predictable responses and tone of responses on here to someone asking for advice means they are unlikely to post again, and also probably unlikely to take the core message on board.

I read the OP and before scrolling down predicted quite rightly the substance and tone of responses i.e. aren't you a dummy for giving up free money.

Now that is quite arguably the case, but unsurprisingly when put in that manner it's unlikely that the recipient will (a) appreciate and (b) take on board the underlying message.

We all need advice on things we don't know much about at times don't we?

atush

And people need to read the advice and take it on board. and not be babied about it.

It is a very bad decision, and should be couched in just those terms. Anything else is a disservice, esp to others reading and thinking of doing the same.

PeacefulWaters

"Well it's not what I'd have done but it's your money"

"It's an insane thing to do. Go and fix it"

nicknameless

atush wrote: »

And people need to read the advice and take it on board. and not be babied about it.

It is a very bad decision, and should be couched in just those terms. Anything else is a disservice, esp to others reading and thinking of doing the same.

Though it is possible for posters to give correct advice without being condescending and vaguely insulting. That is not the same as being 'babied'. My point is that might be the reason the OP hasn't returned.

bigfreddiel

zagubov wrote: »

When I topped up my Teachers Pension, I bought a mix of Past Added Years and AVCs. The latter were terrible value but I took too long to realise it. I'm only buying Past Added Years now (managed to do it before they slammed the door on it). We spoke to an advisor who signed us up to both to start with.

I've no redress as we were clearly aware of Past Added Years when we bought them alongside the AVCs. The thing that infuraites me is it's somebody's job to sell the poor value products, but it's nobody's job to sell you other pension top-ups like Past Added Years.

If trade unions hired their own staff to discuss pensions instead of farming it out to private businesses with a vested interest in it, we might get more honest and neutral advice, and yes, I'd pay higher union dues to guarantee that.

Martin's right - financial know-how should be built in to the curriculum.

Absolutely correct, our union rep knew the pension system inside out and toured around all our sites giving advice especially if the company was offering some of us an option to leave early but still with a full pension. He eventually took his own advice and left. Now no one knows the ramifications. IFAs and FAs seem paricularly useless, only trying to get their percentage, but not explaining anything properly. Maybe that's why you went down the AVC route for a while. I myself was hooked and landed with a private pension in exchange for contracting out in the 80's. All I recall was the salesman drove a really nice car and had a lovely big house. I was going to be a millionaire on the example he showed us especially at 10 or was it 15% growth!

Cheers fj