Pension dilemma

Bernie_rubble

I started a pension in '88 with L&G and opted out state pension.a couple of years later the company put us on 'short time',so i stopped the pension contributions.i was made redundant in '96.i then started working for ROYAL MAIL,'97,which again i took out a pension with them and i left in 2004 and i'm not putting any money into that pension.i received a letter from L&G a couple of months ago ADVISING me to opt back into state pension because of Gordon Browns latest 'tricks'.so i did and i've just received my yearly contributions notice from L&G which clearly says i'm still 'contracted out'HELP!!!

dunstonh

i received a letter from L&G a couple of months ago ADVISING me to opt back into state pension because of Gordon Browns latest 'tricks'.

I very much doubt that was the reason. Actually one of GBs last acts as Chancellor was to increase the rebates from this year making it better to contract out than most of the period that Labour have been in power.

The reason L&G are writing to you is because you bought the pension from a tied agent and they want to remove any potential liability for complaint you have later. If they write to you every year you cannot complain that you werent told about the option to contract in.

so i did and i've just received my yearly contributions notice from L&G which clearly says i'm still 'contracted out'HELP!!!

Did you contract back into S2P in time? If you missed the cut off then you will still be contracted out for that year. Was a contracted out rebate actually paid to L&G or are you just contracted out on paper?

Bernie_rubble

thanks for replying so soon.the person who 'sold' me the pension was a top person in L&G,he also sold me a life policy saying it was a 'money if you die,money if you don't' type.i found out a couple of years later that it was'nt when a rep phoned me to ask did i want to increase it.the L&G person who sold me it had now left.
The reason i'm asking these questions is,is it worth it having a pension?only my father has a 'super annuation' type,which he took out years ago with liverpool council,now 'cause he gets about £50 weekly,he gets £50 a week taken off his state pension,so he's no 'better off',plus 'cause he's a couple of £ 'over the limit',he has to pay FULL council tax for him and my mother so he's worse off,so why have a pension!!!

dunstonh

The reason i'm asking these questions is,is it worth it having a pension?

Unless you fancy living on £4700 a year on the basic state pension, then yes.

only my father has a 'super annuation' type,which he took out years ago with liverpool council,now 'cause he gets about £50 weekly,he gets £50 a week taken off his state pension,so he's no 'better off'

To only get that small amount suggests he wasnt in the scheme very long. Plus, small pensions are not penalised on a 1:1 basis. So its incorrect that he is no better off.

so why have a pension

Simply comes down to whether you want to be poor in retirement or not. No other way to put it.

Bernie_rubble

thanks again,if i was to 'start' contributing again,would it be better for me to put these two pensions together.the L&G was a personal pension the ROYAL MAIL is a company pension.i now work for ENTERPRISE,a large national company,who have asked me do i want a pension with them? you hear of large companys pensions 'disapearing'when people come to collect when they retire.if you watch GM.TV,you see a certain person on it,who has had to work as a caretaker in a school because the pension he paid for 40 years has been 'lost',so you can see my dilemma.

dunstonh

you hear of large companys pensions 'disapearing'when people come to collect when they retire.if you watch GM.TV,you see a certain person on it,who has had to work as a caretaker in a school because the pension he paid for 40 years has been 'lost',so you can see my dilemma.

The people who have lost their pensions only account for around 200,000 of a 60 million population. There is now protection in place for this as well.

You have to be very careful when watching tv or reading papers that you dont get the wrong impression. The media is very poor at reporting facts and likes to sensationalise issues making them sound far worse than they are.

Merging the pensions you currently have is probably not a good idea as the royal mail one wont let you transfer the L&G one to it and transferring the other way is unlikely to be the best option.

The current employers pension; how much is the free money you are not currently getting by not being a member? i.e. how much do they pay into it?

Bernie_rubble

thanks i'll look into this new company's pension.

nicko33

dunstonh wrote: »

The people who have lost their pensions only account for around 200,000 of a 60 million population.

out of 60 million population isn't very meaningful though, if it includes people who never enrolled in a company pension scheme, or those who had civil service pensions.

200,000 out of <total people receiving company pension + 200,000> would be more useful. (but also a harder number to find I expect)

dunstonh

Whatever the percentage stats it doesnt really impact on the OP though as the protection fund is in place now. Plus the issues only relate to final salary schemes and not money purchase/personal pensions.