Pension rip offs

I'm 60 years old and I got made redundant 3 years ago and have only had on and off part time work ever since as no one wants to employ owld folk full time. Anyway I've got a couple of small pensions that ended, one when I got made redundant and another about 10 years before that. I got a 'projection' letter off one of them a couple of days ago off one of them, normally I just bin them but I decided to look into this one as I was bored.

The value of it now is £31,195 the 'projected value when I'm 65 will be £31,500, so a capital of just over £30,000 will make just £300 interest over 5 years!!!!!! unbelievable. Also, when I retire they plan to give me £1320 a year of my own money, this equates to me living to just over 88 years old before I even get my money back ( a lifetime working in the yards and heavy industry, I don't think so!) and don't forget they are still making money on the capital whilst they are paying me back over the years. Imagine going to a Bank and asking for a loan of £30,000 and saying you will start paying it back in 5 years time and you want it interest free over 30 years and if I die 'tuff'' your'e getting nowt back. It's an absolute rip off and I would urge any younguns out there not to get one. Wish I could just withdraw the lot, but apparently pensions don't work like that. Bastards.
You and I and the rest of our age-group were told in the late 80's by the Government at the time to start off a private pension marra.
I did that in 1989 when I was 29 years old- and put in regular amounts, and am now reaping what I have sown now after I took early retirement due to health reasons.
£31k in your pension pot doesn't seem like you have put in a great deal since the late 80's I'm afraid marra.

I would use "draw-down" for your pension pot T.B.H.
 

Boldoneye

Full Back
You and I and the rest of our age-group were told in the late 80's by the Government at the time to start off a private pension marra.
I did that in 1989 when I was 29 years old- and put in regular amounts, and am now reaping what I have sown now after I took early retirement due to health reasons.
£31k in your pension pot doesn't seem like you have put in a great deal since the late 80's I'm afraid marra.

I would use "draw-down" for your pension pot T.B.H.
Mate I'm not arguing about the amount I'm getting back, it's the fact that if you live to an average age you will not even get back what you have paid in.
Thanks, I 'll give it a read.
 
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Boz33

Winger
Mate I'm not arguing about the amount I'm getting back, it's the fact that if you live to an average age you will not even get back what you have paid in.

Thanks, I 'll give it a read.
Or you could look at it as would you have saved that amount in your savings account and kept it for old age if you hadn’t of used a pension scheme.
The crash screwed a lot of pensions up too with interest rates staying so low afterwards for such a long period of time
Could always cryogenically freeze yourself until your 95, defrost and you’ll be up on the deal ;)
 
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Boldoneye

Full Back
Or you could look at it as would you have saved that amount in your savings account and kept it for old age if you hadn’t of used a pension scheme.
The crash screwed a lot of pensions up too with interest rates staying so low afterwards for such a long period of time
Could always cryogenically freeze yourself until your 95, defrost and you’ll be up on the deal ;)
Fair comment, yes I would have saved that money. I know because I did (and more) in Bonds and Building Societies, and that money is earning more than what my Pension is.
 

Boz33

Winger
Fair comment, yes I would have saved that money. I know because I did (and more) in Bonds and Building Societies, and that money is earning more than what my Pension is.
So just draw it down and use it that way.
In the main folks won’t be able to save vast amounts by themselves, pensions just offer that security of a fixed income, obviously varying with the amount people have ploughed into the schemes and the generosity of the company schemes of course adding to it
I went the other way and didn’t bother with a pension and put mine into bricks and mortar for an income when I’m old with the added bonus that they can be sold/passed on when I croak it, which worked out best as I’ve always been self employed so no cushy company based scheme
The wife is pension all the way but she was in the final salary bracket which was a great deal but I guess are few and far between nowadays

As an aside, how much were you putting in % wise of your wages as 31k doesn’t seem a very substantial amount over loads of years or was it just a few years you contributed?
I suppose if your of the mind you could draw down both small pensions and buy a flat/ house and live off the rental income to get a better monthly return on your dosh and pass the property on when you croak it rather than just drawing it down and spending the capital itself? Horses for courses really
 
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Shirley Shammel

Central Defender
I'm 60 years old and I got made redundant 3 years ago and have only had on and off part time work ever since as no one wants to employ owld folk full time. Anyway I've got a couple of small pensions that ended, one when I got made redundant and another about 10 years before that. I got a 'projection' letter off one of them a couple of days ago off one of them, normally I just bin them but I decided to look into this one as I was bored.

The value of it now is £31,195 the 'projected value when I'm 65 will be £31,500, so a capital of just over £30,000 will make just £300 interest over 5 years!!!!!! unbelievable. Also, when I retire they plan to give me £1320 a year of my own money, this equates to me living to just over 88 years old before I even get my money back ( a lifetime working in the yards and heavy industry, I don't think so!) and don't forget they are still making money on the capital whilst they are paying me back over the years. Imagine going to a Bank and asking for a loan of £30,000 and saying you will start paying it back in 5 years time and you want it interest free over 30 years and if I die 'tuff'' your'e getting nowt back. It's an absolute rip off and I would urge any younguns out there not to get one. Wish I could just withdraw the lot, but apparently pensions don't work like that. Bastards.
I’m a financial adviser. Give me a PM if you need any advice.
 
I have a pension from another company that will see me fine from 55. However currently paying into the government workplace pension scheme and they sent me a projection of what ithe estimated value will be and income I will get off it if I take it at 55. I will have to live till I am 109 to get back the money I will have paid in ffs. I'll just take it as a lump sum and take the tax hit on it.
 

Shirley Shammel

Central Defender
I have a pension from another company that will see me fine from 55. However currently paying into the government workplace pension scheme and they sent me a projection of what ithe estimated value will be and income I will get off it if I take it at 55. I will have to live till I am 109 to get back the money I will have paid in ffs. I'll just take it as a lump sum and take the tax hit on it.
Worth getting an adviser to look at any occupational scheme that’s now deferred mate. PM me if you like.
 

Paddy O'Dors

Striker
I'm 60 years old and I got made redundant 3 years ago and have only had on and off part time work ever since as no one wants to employ owld folk full time. Anyway I've got a couple of small pensions that ended, one when I got made redundant and another about 10 years before that. I got a 'projection' letter off one of them a couple of days ago off one of them, normally I just bin them but I decided to look into this one as I was bored.

The value of it now is £31,195 the 'projected value when I'm 65 will be £31,500, so a capital of just over £30,000 will make just £300 interest over 5 years!!!!!! unbelievable. Also, when I retire they plan to give me £1320 a year of my own money, this equates to me living to just over 88 years old before I even get my money back ( a lifetime working in the yards and heavy industry, I don't think so!) and don't forget they are still making money on the capital whilst they are paying me back over the years. Imagine going to a Bank and asking for a loan of £30,000 and saying you will start paying it back in 5 years time and you want it interest free over 30 years and if I die 'tuff'' your'e getting nowt back. It's an absolute rip off and I would urge any younguns out there not to get one. Wish I could just withdraw the lot, but apparently pensions don't work like that. Bastards.
I think that small pension income might also disqualify you for some benefits when you retire too.
 

joemcdokes

Striker
How long had you been paying into this pot and at what percentage? Because the figures suggest not very long or not very much, or both.

An advert for starting your pension as early as possible if ever there was one.
If only it was as simple as that, you need the money to work for you, just starting early and sticking money in at a certain rate doesn't guarantee you anything.
You have to rely on those who are supposed to know what they are doing to get a decent return.
 
If only it was as simple as that, you need the money to work for you, just starting early and sticking money in at a certain rate doesn't guarantee you anything.
You have to rely on those who are supposed to know what they are doing to get a decent return.
Was having a quick look while having a dump earlier, a pot of that amount would have gotten about £2200 a year pre recession, OP is only getting £1300 today. Canny shite like.

Glad we'll be in Brexit Britain when I retire and I'll be getting millions.
 

Exile in Ayr

Goalkeeper
Take a fixed term annuity say over 10 to 15 years at state pension age. Should the personal allowance be say 15k and pensions are less in total then it's zero tax and national insurance and your gross income is in your hip. It is just a life expectancy gamble with fixed term but if you can work it so it's tax free then you ain't paying tax twice.
 

Hank Scorpio

Midfield
Can you not fire off emails and save yourself £1200
No. If the fund is worth over 30,000 then you need to seek financial advice if you want to move the fund (drawdown etc).
I'm 60 years old and I got made redundant 3 years ago and have only had on and off part time work ever since as no one wants to employ owld folk full time. Anyway I've got a couple of small pensions that ended, one when I got made redundant and another about 10 years before that. I got a 'projection' letter off one of them a couple of days ago off one of them, normally I just bin them but I decided to look into this one as I was bored.

The value of it now is £31,195 the 'projected value when I'm 65 will be £31,500, so a capital of just over £30,000 will make just £300 interest over 5 years!!!!!! unbelievable. Also, when I retire they plan to give me £1320 a year of my own money, this equates to me living to just over 88 years old before I even get my money back ( a lifetime working in the yards and heavy industry, I don't think so!) and don't forget they are still making money on the capital whilst they are paying me back over the years. Imagine going to a Bank and asking for a loan of £30,000 and saying you will start paying it back in 5 years time and you want it interest free over 30 years and if I die 'tuff'' your'e getting nowt back. It's an absolute rip off and I would urge any younguns out there not to get one. Wish I could just withdraw the lot, but apparently pensions don't work like that. Bastards.
Ring pensionwise and you will get a free consultation. As the fund is worth more than £30,000 you will need advice if you want to move it.

Although 4% may seem high, a good advisor will be able to get you the best deal possible. They will also be able to explain the most tax efficient way of accessing the fund.

No disrespect mate, but there is nothing wrong with pensions. The problem is; people either can’t be arsed to read up on the scheme; or don’t want to pay for financial advice
I have a pension from another company that will see me fine from 55. However currently paying into the government workplace pension scheme and they sent me a projection of what ithe estimated value will be and income I will get off it if I take it at 55. I will have to live till I am 109 to get back the money I will have paid in ffs. I'll just take it as a lump sum and take the tax hit on it.
That’s doesn’t sound right mind mate. Normally, you can expect your contributions back pretty quickly. The 25% tax free lump sum normally covers a large chunk of your contributions
 
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Boldoneye

Full Back
Take a fixed term annuity say over 10 to 15 years at state pension age. Should the personal allowance be say 15k and pensions are less in total then it's zero tax and national insurance and your gross income is in your hip. It is just a life expectancy gamble with fixed term but if you can work it so it's tax free then you ain't paying tax twice.
See, this is news to me, the FA at Newcastle building society didn't mention you could do this. Thanks mate.
 
That’s doesn’t sound right mind mate. Normally, you can expect your contributions back pretty quickly. The 25% tax free lump sum normally covers a large chunk of your contributions
Their figures on their annual update to me were approx they estimated I would have £40000k in the pot at retirement (55) which would give me a monthly income of circa £60 !!! Fuck that !!!
 

Kevsgreat

Striker
Got one from a previous job, haven't paid anything into for about five year but it seems to keep ticking up working with what's already in it when I get the yearly statement. Current and previous jobs both use Nest, which by all accounts isn't that great but I was told we've got to use them. Was considering paying extra into my original one but I don't know if that's just going to complicate things.
 

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