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Things to do in the New Year

Seasoned Champion
Posts: 1,393
Thanks: 1,185
Registered: ‎21-11-2018

Re: Things to do in the New Year

@Jonpe wrote:

As reported in today's DM, many pension schemes have been illegal and the victims are now facing fines by the HMRC, who approved the schemes in the first place.

Problem is the HMRC are always right - even when they are wrong,  as anyone who has crossed swords with them knows only too well.....

Community Veteran
Posts: 14,824
Thanks: 933
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Registered: ‎01-08-2007

Re: Things to do in the New Year

Neither of us have a pension. We don't believe they'll exist by the time we reach the ever furthering retirement age.

Add to that all of these new rights to move your pension pot etc.. it stunk of a state sponsored scam years ago but nobody would ever take me seriously when i said that.

Now look whats gone full circle..

I need a new signature... i'm bored of the old one!
Community Veteran
Posts: 5,865
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Registered: ‎06-11-2014

Re: Things to do in the New Year

If you want to reliably have a pension for later in life, stash your cash under the mattress, if banks collapse, pension schemes go belly up or if the government decided to pull a fast one and scrap the state pension, at least then you'd have something safely on hand, well, as long as you don't wet the bed or anything, but I guess the plastic notes these days would stand up to a bit of wee... 😂

Aspiring Legend
Posts: 11,193
Thanks: 3,618
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Registered: ‎04-11-2014

Re: Things to do in the New Year

Things might change, but any change in the state pension will be subject to a five year review and plenty of notice. As for no state pension at all well that's not going to happen - unless we want millions to starve and all the rest that goes with it.

A big worry or those who want a more than comfortable are those private/company pension schemes which the government will not underwrite should they go pear shaped. Let the market dictate and all of that. ☹️

I don't suppose anybody below fifty five or sixty years old can reasonably expect to retire on a state pension before they are seventy the way things are going so yes, stash some cash as @twocvbloke suggests or anything that might hold it's value - but who can do that these days. Not many I imagine.

Posts: 7,940
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Registered: ‎30-07-2007

Re: Things to do in the New Year

In my experience, even if you do have a company pension, then unless its a final salary scheme, getting a pension from the insurance company is a bit like 'getting blood from a stone'. They have had your money for so long, they seem to think its theirs!. In the end I was very fortunate that my company scheme was started back in the 80s, when annuity rates were high, and most of my 'pot' had a guaranteed annuity rate. Getting at least one of the insurance companies to honor that was a major task, they try all sorts of smoke and mirrors to avoid paying it. Financial advisors arent much use either, they may know about where to invest money but as to crystallising a pension, they were about as much use as the proverbial 'chocolate teapot'. In the end I had to deal with the insurance companies myself and now know a LOT more about pension fund rules than I did before!.

I was also lucky, in that I got my state pension at 65, some of my colleagues have to wait until 66 or later. Problem is that they are in the same company scheme I was, with a guaranteed annuity pension that MUST be taken at 65 or you lose the guarantee, which just about halves the annuity rate!. So they have to take their company pension at 65 but carry on working and so, either end up paying lots of tax or having to reorganise paying into a new pension to avoid it.

Posts: 202
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Registered: ‎24-02-2009

Re: Things to do in the New Year


Have to agree with what you say there. The financial service industry makes its money out of the ignorance of the public.  I do not have a Financial Advisor as most seem to earn a lot of money without actually being very bright!  You can only justify paying for advice (IMHO) if you are a seriously high earner or asset rich in the millions.

One good thing that Osborne did as Chancellor was to drop the need to ro take out an annuity at age 75.  You can now keep your unspent pot and pass it onto your spouse for their benefit free of Inheritance Tax.

The ultimate fly in the ointment though is Self Pay Care Fees.  If you lose that lottery (and it is all mainly about your genetics) the State will more than likely take everything you have!

Happy New Year!

Posts: 7,940
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Registered: ‎30-07-2007

Re: Things to do in the New Year

@TeeGee  the problem these days is that most pension companies will insist that you have taken Independent financial advice when taking or starting a pension. Any forms must be signed by a registered financial advisor and so you at least have to pay for some advice at that point. In my case the advisors were those who had been advising the company in respect of the pension scheme. They had been getting commission for a number of years and so agreed to assist all members of the scheme at no cost

Community Veteran
Posts: 9,940
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Registered: ‎02-08-2007

Re: Things to do in the New Year

There are a vast range of pension schemes but most would agree that pensions paid to millions who have worked for the state usually end up with higher and more secure pensions that those who worked for private companies despite recent changes.

I understand a good percentage of what you pay in council tax goes to pay wages and pensions so you can have a situation where those with little or no pensions are paying for the increases of some on good pensions.

I guess it’s just one of the many unfair things in life.

How binding is financial advice....if you are given the wrong advice and lose money I doubt you can do much to reclaim any many people were convinced that transferring a pension into well known insurance company would cost them losses....

I do not recall anyone going to jail for giving out that advice.

Fortunately I have never needed the advice of others regarding my finances as I have never had that much finance in the first place.💰

Aspiring Hero
Posts: 2,886
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Registered: ‎05-09-2016

Re: Things to do in the New Year

Having spent the past 18 months doing my retirement planning, I've calculated that schemes seem to expect members not to live more than 17-20 years after retirement.  I.e. if you defer a pension, it will take you that long to recoup the money you've 'lost' by deferring (allowing for the difference in tax rates if you are currently paying 40%, which is usually why people defer).

There is a good way of ensuring you get a good pension, but it's only open to about 1450 people at a time, and requires one to have the ability to tell lies with a straight face; become a member of either House of Parliament.