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Pensions

Community Veteran
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Pensions

I was listening to Ros Altmann talking about pensions a few days ago and her message was that everyone of working age should be saving into a pension scheme.
Personally I think this is a bit simplistic, if you have a good salary or self employed and making good money then fine it's good advice but what if you are one of the several million people on very low wages, does it really make sense to go without things just to save a few pounds to put in a pension fund ?
To get any sort of realistic return the amount you need to contribute is considerable and the older you are or if you add options like increases to your pension in line with inflation or arrange for your wife/partner to get half your pension should you die the cost is likely to be beyond the means of those on an average salary.
Added to that is the government can change the rules any time it likes, remember Browns raid on pension funds which had a surplus and the number of people who lost  part or all of their pensions when some Insurance companies went to the wall.
So in summary I think it pointless for many people on low wages to even bother to save for a pension.
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Community Veteran
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Re: Pensions

It is utterly pointless IMO. One of my previous employers offered a local government pension but I opted out because i knew it would be pointless by the time i retired.
Pension funds are continually targetted by the government(s) for cash and this makes them worthless. Why bother putting money into an account to let someone else then snatch it from you? - Why would anyone do that? - All on the premise that "they can't do that!" - YES, YES THEY CAN!
Unfortunately though there are always people who believe what they are told instead of seeing how it really works. I have never earned the average income, I've always been stuck in the deep stuff and I could never afford to pay into a decent pension but even if I could, I still wouldn't bother because they are only going to be worthless when I reach that age.
Yes it sounds negative and I'm sure artmo will never forgive me for it but it's the way many of my generation think these days.
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Community Veteran
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Re: Pensions

The UK had the best pension scheme in the world until Brown got his hands on it.
@7up,you say pension funds are continually raided. Apart from Brown's theft when else did this happen?
You also say you don't bother with a pension. How will you survive at retirement? The OAP isn't that much.
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Re: Pensions

I paid into a pension until 1988 and early retirement (6%, I think).
When I went back to full-time work in 2007 I decided not to pay in then as I would not have got the return I would have liked plus, as per the OP, I could not really afford the payments.

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Community Veteran
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Re: Pensions

Well there was Maxwell.. and pension raids have been mentioned many times over the years...
As for my old age.. no idea - thats if I even get there. Considering how my country is refusing to help me in any way, shape or form when I am in the deepest hole I've ever been in, I can't realistically see myself reaching that age. Can you? IF I do, I don't suppose surviving it will be any harder than my life is right now..
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Community Veteran
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Re: Pensions

Equitable Life, ...............not so much a raid but the pensioners lost
Community Veteran
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Re: Pensions

Maxwell was not a government raid Sad
You constantly feel your country owes you something - I don't understand Undecided
rongtw
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Re: Pensions

A lot of pension advisers are  in a bit of limbo at the mo , no one is taking new annuity s because of the changes in  law .
its a bit of a grey area at the mo , i have a pension which i should be able to draw in nov this year . but because of changes in April next , and my health i was advised not to get another annuity yet  .
it may be best for some till wait till April and see what new comes out   
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Community Veteran
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Re: Pensions

Quote from: artmo
Maxwell was not a government raid Sad

You're right but it was however a pension raid.
Quote from: artmo
You constantly feel your country owes you something - I don't understand Undecided

No but I do expect it to put right the wrongs it has imposed on me. Equal opportunities remember - thats all I want yet they continuously focus their efforts on screwing me over instead.
Don't understand? - PM me.
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Community Veteran
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Re: Pensions

I can't help feeling that it's all gone wrong.
I remember a few decades ago the talk was of a much shorter working week. And before somewhere says we have that I'm talking full time jobs.
On pensions well the retirement age was supposed to come down. The minimum expected was parity with woman. Everyone retiring at sixty or less.
We seem to be going backwards. As the old saying goes we have more reverse gears than an Italian tank.
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Re: Pensions

Quote from: billnotben
we have more reverse gears than an Italian tank.

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nanotm
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Re: Pensions

@7up, you shouldn't have opted out of that pension scheme, you'd be getting it now if you worked in the job for more than 2 years ,
as someone who has a military pension (not quite as generous as a civil service one) topped up with a war pension and then tax credits /housing benefit /child benefit when I get to be an OAP (which will be at least 40 years time if the current age limit doesn't rise) i'll still be getting my current pensions,
but I also wont be getting a job without some kind of miracle, and I do believe that my years of contributing to the scheme (oh wait it was free to me paid for by my reduced rate nic's and lower wage rate than those in the private sector...) 
brown screwed the nation's pension's by raiding all of them at once (to the tune of several billion) and caused a huge pension deficit (in the hundreds of billions), one of the pension plan providers declared bankruptcy and millions of people lost there money, the only pensions unaffected by this were the government provided schemes (and only because legislation protected them and nobody would let him change that)
just because your paranoid doesn't mean they aren't out to get you
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Re: Pensions

I'm a pensioner and followed all the traditional advice. I joined any available pension scheme and finished up with if I remember about seven different pension pots
In the last few years I made extra voluntary contributions where the biggest gain was that they were pre tax so 40% was added to my savings.
When I worked overseas I spent my savings on buy for let's.  Cool
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Re: Pensions

Community Veteran
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Re: Pensions

The trouble with buy-to-let is it tends to increase the price of housing to other people. I suppose it is just a natural but unintended consequence of the Government/shareholder raids on pension funds and the forced low interest rates on deposits.
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