Pension rip offs

Fletch said:
to be fair when in your early 20s tend to just be interested in what money have for going out/ hols/ clothes etc
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totally agree , but trying to encourage them to see the longer term view. Civil service pay has been pretty flat last few years and they see friends in private sector getting regular increases but it’s not the full picture.
 


I've been paying into a private pension for around 3 years now, started a bit later than I should have and haven't been paying huge amounts but increasing as my pay has increased over time. How often do you feel I should review the state of my pension? - naturally I am far from an expert on this so should I seek financial advice every so often?

I'm also keen to transfer my previous workplace pensions into this if possible, as keeping a track on them all over the years is going to prove difficult. How easy is this to do usually? I know that there will be certain conditions that may not make it possible but again it's a little over my head at times. I did have a final salary scheme with my previous employer whilst all the others are the standard defined contribution schemes.
 
Unbalanced Views said:
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,
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That’s a massive generalisation that’s not true. A lot of people might go into a lifestyle pension which is managed based on your retirement date. It may not fit your risk profile, but it’s a managed fund.
 
Longy said:
That’s a massive generalisation that’s not true. A lot of people might go into a lifestyle pension which is managed based on your retirement date. It may not fit your risk profile, but it’s a managed fund.
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The presumption is its managed by people who know what they're doing - failure to take responsibility for your pensions or investments will end in tears
 
Unbalanced Views said:
The presumption is its managed by people who know what they're doing - failure to take responsibility for your pensions or investments will end in tears
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Your employer doesn't manage your investments, they are with a third party.

Joe public know more about managing a portfolio than a qualified investment manager who is more than likely a qualified actuary with years if not decades of training and experience?

A lifestyle fund is fine for most people and automatically makes choices based on your age as the other fella said. Easy enough to logon online and choose low, medium, high risk funds but most just stick with the lifestyle fund as they can have decent returns without the volatility.
 
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Unbalanced Views said:
The presumption is its managed by people who know what they're doing - failure to take responsibility for your pensions or investments will end in tears
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Agreed, but to scare people by telling them their investments aren’t being managed isn’t true. However, I suppose if your post encourages a few people to look into their current arrangement, that’s good.
 
Tuono said:
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.
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So you are saying your Mrs has worked in the Public sector for 3 years and has earned a pension of £9K a year. Who the fuck are you married to, Neil Kinnock?

I have 7 years in a public sector pension and that is worth about £1500 a year!

If I has stayed in the same job for 40 years my annual pension would have been £8,200 per year and £24K Lumpa.

I think your lass is taking the piss Marra
 
Shirley Shammel said:
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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I'm not saying a 4% fee is justifiable but pensions is a highly complex area, given the range of schemes, types and routes to access income in retirement, plus a firm being responsible for the advice, pay out in the event of a complaint, rising PI costs, permissions and regulation etc. £1200 is not a lot in that context. IMHO.

To the OP, you don't have to buy an annuity, which is what the projection is based on.

And FWIW, pensions are one of if not the most tax efficient and flexible retirement vehicle. If your employer contributes - free money. Tax relief at your highest rate on any personal contributions on the way in, tax free growth for the whole period of investment, 25% tax free from age 55, any income taken taxed at your marginal rate and then anything left can be passed on to your loved ones.

I'm 25 years away from the state pension - I don't think it will even exist in its current form by then. For that reason Me and the Mrs are piling what we can in to ours.
 
TheWanderer said:
With you being made redundant, does the scheme not allow you to get hold of the lump sum and pension now without penalties?

I know if I take mine at 55 and not 65, I’ll lose 35%, but I’d made redundant I can access at 55 with no penalties?

Pointless waiting and adding a few extra % when you could be drawing it now and likely make more money over the next 5 years than you would in interest.
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Is that a local government scheme?
 
houghton cut head said:
So you are saying your Mrs has worked in the Public sector for 3 years and has earned a pension of £9K a year. Who the fuck are you married to, Neil Kinnock?

I have 7 years in a public sector pension and that is worth about £1500 a year!

If I has stayed in the same job for 40 years my annual pension would have been £8,200 per year and £24K Lumpa.

I think your lass is taking the piss Marra
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She was a deputy manager working for Wandsworth Council, loads a money. I think she gets a £6,000 lump sum anarl, payable in about 6 months time when she hits 62. Just checked with her, it'll be about £6,000 depending on how much she takes as a lump sum at the start, the bigger lump sum she takes the less she gets anually.
 
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Stepover said:
I'm not saying a 4% fee is justifiable but pensions is a highly complex area, given the range of schemes, types and routes to access income in retirement, plus a firm being responsible for the advice, pay out in the event of a complaint, rising PI costs, permissions and regulation etc. £1200 is not a lot in that context. IMHO.

To the OP, you don't have to buy an annuity, which is what the projection is based on.

And FWIW, pensions are one of if not the most tax efficient and flexible retirement vehicle. If your employer contributes - free money. Tax relief at your highest rate on any personal contributions on the way in, tax free growth for the whole period of investment, 25% tax free from age 55, any income taken taxed at your marginal rate and then anything left can be passed on to your loved ones.

I'm 25 years away from the state pension - I don't think it will even exist in its current form by then. For that reason Me and the Mrs are piling what we can in to ours.
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Fair point. I just cap my fee at 3% for investment or pension business. I don’t feel right charging clients more than this and it’s extremely difficult to be competitive with a fee higher than this as well. For bigger pots - like DB transfers for example - i’ll charge as little as 1%. All depends on the case size really.
 
87 Others said:
Currently putting 6.8% in and employer contributes 12.47%

I'm hopeless with pensions, so no idea if it's any good
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That's a very, very good proportion (without knowing your age and when you started paying in).

My place contributes only 6% and I contribute 4%. It means I get the maximum tax efficiency, whilst saving more in various areas like ISAs etc.
 
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My current private pension is classed as "Current Investment" rather than low/medium/high risk - is anyone able to explain what this means and whether I should look to change it?
 
Horatio Moustache said:
That's a very, very good proportion (without knowing your age and when you started paying in).

My place contributes only 6% and I contribute 4%. It means I get the maximum tax efficiency, whilst saving more in various areas like ISAs etc.
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27 now and being paying in for three years

I'll stop slating the place so much if they're being generous
 

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