Pension rip offs

Shirley Shammel

Central Defender
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).


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


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
This can be the biggest danger of all mate. Well said.

The amount of people who’ve just blindly purchased an annuity with their pot without seeking advice on their options is frightening.
 
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Matt Hopkins

Full Back
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).
The problem is people can’t be arsed to read up on anything
Is that right? I thought the £30k was only if you wanted to transfer out of a DB scheme?
I'll take your word for it though as I fall into your (clipped) second sentence:lol:
 

Boldoneye

Full Back
Thanks for all the info and replies, as I said it's not the amount I'm receiving that's annoying but the fact that it takes so many years before you get back what you have put in,probably way beyond my life. I think people tend to forget that when you retire and start receiving your pension the capital (yours) is still working for them, and it wouldn't surprise me if they generate in interest on that, equivalent to what they pay you in your pension, leaving them with a lot of the capital left when you croak.
 

Pop

Striker
Thanks for all the info and replies, as I said it's not the amount I'm receiving that's annoying but the fact that it takes so many years before you get back what you have put in,probably way beyond my life. I think people tend to forget that when you retire and start receiving your pension the capital (yours) is still working for them, and it wouldn't surprise me if they generate in interest on that, equivalent to what they pay you in your pension, leaving them with a lot of the capital left when you croak.
They will generate interest on it, do you expect them to do all the highly skilled work for free?

You’ve already been told you can move it to drawdown which would let you access as much or as little as you want and would prevent any remaining balance being retained upon your death.
 
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.
Can't make your money work for you if you don't put any in the pot to begin with.
 

DaveH

Striker
No real help to the OP, but having crossed the 40 barrier a couple of years ago, I found that myself and a lot of work mates suddenly started looking in depth at how their pension is working and what they need in retirement. One talk I went to suggested £20k per year or £40k for a couple is a pretty nice amount that will give a comfortable life, a few holidays and no desperate worry when the car or boiler dies. The state pension will give about £9k per year, so assuming it is still about I need £11k per year plus any short fall between retiring and reaching state pension age. Lump sum perhaps.

In my job, pay rises kick in, in the October pay packet and my pension provider has just released a new estimator and planning website. In a couple of weeks, I'll sit down to look at what my wage increase is, what our general increase in spending is, and then look at the best way to use a pay rise. Does it all go to the day to day increases, put more on paying the mortgage off sooner, put it in the pension or start building up something else?

I have seen a few people get to an age they want to retire then have a couple of nasty shocks. One of my aims now is to make as sure as I can be, that I know what to expect and by planning can hopefully adjust to suit me. With 18 years to go to 60, it would be nice to have 18 evenings going over my finances then retire in a planned controlled way. My advice to anyone of a similar age is to do the same.
 
No real help to the OP, but having crossed the 40 barrier a couple of years ago, I found that myself and a lot of work mates suddenly started looking in depth at how their pension is working and what they need in retirement. One talk I went to suggested £20k per year or £40k for a couple is a pretty nice amount that will give a comfortable life, a few holidays and no desperate worry when the car or boiler dies. The state pension will give about £9k per year, so assuming it is still about I need £11k per year plus any short fall between retiring and reaching state pension age. Lump sum perhaps.

In my job, pay rises kick in, in the October pay packet and my pension provider has just released a new estimator and planning website. In a couple of weeks, I'll sit down to look at what my wage increase is, what our general increase in spending is, and then look at the best way to use a pay rise. Does it all go to the day to day increases, put more on paying the mortgage off sooner, put it in the pension or start building up something else?

I have seen a few people get to an age they want to retire then have a couple of nasty shocks. One of my aims now is to make as sure as I can be, that I know what to expect and by planning can hopefully adjust to suit me. With 18 years to go to 60, it would be nice to have 18 evenings going over my finances then retire in a planned controlled way. My advice to anyone of a similar age is to do the same.
Assuming kids are gone and you have no mortgage £40k a year for a couple is more than enough. Better to spend money when you are young than hoard it for when you are too old to enjoy it.

Money is needed from retirement to 75. After 75 you will struggle to spend much. People just naturally slow down.
 

Metalmicky

Goalkeeper
Just checked my workplace pension and I have £18k in it. I consider myself lucky enough to have a service pension and a pretty good portfolio of ISA's and savings. I do think that pension companies do seem to over-complicate some of the literature associated with pensions and would recommend that anyone considering their options take financial advice...
 
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.
That "projected" figure is best ignored , it's a bit of a con .
 
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Dave Herbal

Striker
My first job I was told it was all being looked after by company contributions, but when I finally decided to check I found they’d only paid in 4 grand over 14 years. Since then I’ve been paying into the new one at 9% of salary, but the projected pay out on that is only about 100 a month.
 

Fletch

Striker
Was going to be made redundant last year, I’d have had 23/60ths of a final salary pension which I could’ve got at 55, which would be 12 years time.

But was offered a position last minute and I decided to stay on, each year it’s another 60th and based on previous cycles I’m sure redundancy will come round again in those 12 years with any luck.

Stayed on last time because of working from home and being around the wife whilst she’s established her new franchise...now she’s settled I could easily work away these days.
is full pension 30/60 or 40/60 ?
By the time most young'uns aren't young anymore I think the state pension will be means-tested.
i reckon it will be safe for anyone over age of 30 at moment (although may well rise to age 70) , but agree at some point it will become means tested
 
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Charlestonian

Midfield
It’s decent where I am, I pay in 5% of my wage and the company pay in 10% on top of that monthly. I started doing that at 32, maybe a little later than I should have but I’m hoping that’ll mature into a decent lumper when I’m older.
 

Quench

Winger
I've got a civil service pension that'll pay me 27k a year from 65. I'm just about to dump a load of money into a draw down from some private pensions and out of my business and hopefully will be part time from now to 65 and top up my income from the draw down until then.
 
The problem is there is no "pot" just a huge gaping chasm that gets bigger every year.
Ok, it worries me that those that have been throwing cash into the huge gaping chasm all their lives will be the ones that get fck all out of it

👍
My first job I was told it was all being looked after by company contributions, but when I finally decided to check I found they’d only paid in 4 grand over 14 years. Since then I’ve been paying into the new one at 9% of salary, but the projected pay out on that is only about 100 a month.
Which , if speculation on here is to be believed, means your state pension will probs be reduced by about £100 a month

🤨
 
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