Pension rip offs
- Thread starter Boldoneye
- Start date
The simple answer should be the fee they’ll pay should more than pay for itself over time.
The fact the OP is saying that young people shouldn’t contribute to a scheme that gives tax breaks & potentially matched contributions from an employer suggests it’d be 4% very well spent for him. The fact he said he hadn’t even glanced at his pension projections is supporting evidence that if he’d spent his 4% years ago, he’d be in a lot of a better position today with an actual plan & timetable in place & the pot invested in the way to suit him.
Pop
Striker
Moving someone to drawdown is not a basic and bread and butter question, there is a lot of skilled work involved.
safc...hic!
Midfield
Im sure the rules have changed and you can now go for a "draw down" option (think thats its name).
Basically its up to you to takeout what you want but when its gone its gone. Only take so much as to avoid paying tax or your just throwing cash away.
D
Deleted member 30053
Guest
No mate I don’t tend to believe 4% is a fair fee. I’ve never charged that in my life (Max 3% for me) but drawdown is not simple at all. Definitely not.
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Tuono
Winger
I'm in a very similar boat. I've worked in construction all my life, firstly as an employee but then when I was aged 27-28 I became self employed. I have a pension which as far as I can work out is from when I was an apprentice, it's worth a massive £16 as a lump sum! Being in construction I worked for many different companies and most of them had some form of pension contribution scheme but I'm fecked if I could name a quarter of them. Snowdons? Crawfords? Jarvis, are the only ones I can name for sure. The two private pensions I've paid into for the past 30 years have amassed me a sum of about £60,000 but looking at my prospective pay out when I retire in 5 years time it's only about £1500 a year (these figures are just off the top of my head but wont be far off correct). I'm sure I was paying in about 10-15% of my wages when I first started them and I've never increased the amount to keep up with inflation, mainly because so many people were saying pensions were a waste of money. What really pisses me off is how my missus who spent 3 years working in the public sector has a pension about 6 times bigger than mine and she can start collecting it from the age of 62. For 3 years contributions she gets 6 times more than I get for 30 years worth of contributions! How can that be right!!! I want to be able to pay into a public sector pension please.
Kids sort out a pension now, or rob a bank.
Boris Bear
Striker
I consider myself very lucky to be in a final salary scheme for the second time in my career. Hoping to be very comfortable in my dotage.
Exile in Ayr
Central Defender
Final Salary are expensive schemes to run which is the reason they are rare in the workplace now. Mine closed a few years before I retired and went onto something inferior which then had to be taken as an annuity through salary sacrifice. In hindsight when I was in the final salary scheme I wished I had hammered the AVCs. That would have been the icing on the cake.
Boris Bear
Striker
Considering this. I used to hammer the AVCs when I was in a Money Purchase scheme
Exile in Ayr
Central Defender
Far more lethal in a final salary where your pension pot is a better percentage return. The 25% tax free lump sum is there in both cases and a nice gross to net return when NHS contributions cease.
Boris Bear
Striker
You’ve convinced me
Exile in Ayr
Central Defender
I took a fixed term annuity so to get the full benefit of my pensions before one stops I am banking on pegging it on my 86th birthday, otherwise I wouldn't make money until I was 94 had I taken a lifetime annuity. Might be back in the Premier league by then mind although there again, na ignore last sentence.
Billy Smart's Circus
Full Back
Only mandatory to receive financial advice prior to transfer into drawdown if your personal pension has a Guaranteed Annuity Rate. Did NBS confirm this applies to your pension? Well worth you getting a qualified second opinion from an IFA.
thanks for the honest reply.
Fletch
Striker
luckily i paid into pension from teenager as the union reps more or less made me , eventhough work booted me out of it last year I have an "ok" provision .
I keep drumming it into my 2 the importance of contributing once you start work and not leaving it until you are in 30s , but its like talking to the wall
I can imagine a lot of self employed just dont bother - retirement always seems a million miles away - until you hit your mid 40s then you think,,bollocks
I keep drumming it into my 2 the importance of contributing once you start work and not leaving it until you are in 30s , but its like talking to the wall
I can imagine a lot of self employed just dont bother - retirement always seems a million miles away - until you hit your mid 40s then you think,,bollocks
Key to get in early. If you get used to paying say 10% of your wage into a pension when you’re just starting out & not warning a lot, it’s easy to continue into later life when your wage rises.
Ideally, if they’re employed, tell them to pay at least enough to get full free employer matched contributions. Free money.
anotherfinemessi
Midfield
I've only ever had to look at a couple of local government pensions - so maybe it's particular to them - but isn't the £1320 per year in addition to the "lump sum"?
Nookie Bear
Winger
having similar conversations with some of my younger team members at the moment who can’t see that employer contributions of circa 20% are a benefit and that it’s not just about basic pay but all they can see is the number they get as pay. They’d possibly get paid more in the private sector but nowhere near the benefits
Fletch
Striker
to be fair when in your early 20s tend to just be interested in what money have for going out/ hols/ clothes etc
Unbalanced Views
Winger
I think some of the misgivings voiced in this thread concerning returns is due to some assuming their Pensions were actively being managed by the company they are with - they're not, you have to proactively manage them. I have a FA who I meet with every 6 months now, previously I assumed everything was fine until my pension pot managed to lose £25 in a year - I got in touch with a recommended FA and he got very cross indeed with the firm managing one of my pensions, moving it to another firm who managed to make a very healthy profit for me the following year, so my FA defo earned his corn.
The moral of the story is to manage your own money, its no ones fault but yours if you can't afford to retire with a similar pension to what you now earn, provided you started early enough of course.
The moral of the story is to manage your own money, its no ones fault but yours if you can't afford to retire with a similar pension to what you now earn, provided you started early enough of course.
