The governments new pensions initiative

I suspect the pension providers will invest the contributions abroad, so a whole load of money will get sucked out of the UK economy and the youth unemployment situation will get even worse.

 

You usually have a choice of funds to invest in, so if you want to invest in the UK you usually can (although you may be better off risk wise investing elsewhere).

I am in three different pension schemes (soon to be 4). They vary in how much they are worth, but even the EPAL (Electricity Pensions Administration Scheme) which goes back to the former CEGB now has a big black hole.

There are benefits to being in a company pension. For example, if I put in 4% of my salary and the company puts in 10%, then to my mind I'd be silly not to accept that extra money.

In addition to that, there ,may be other benefits which would only kick in if you were in the pension scheme, such as death in service benefit (up to 8 times your salary if you have dependents or 4 if not), plus some companies (albeit quite rare) provide Income Protection which pays out 75% of your salary if you're off work for six months or more.

Maybe they should base it on how much NI you have paid over the course of your working life - so the more you put in, the more you take out, with some sort of provision for those who genuinely couldn't pay much in.

 

Here's my take.

I can realistically save about £200 per month. I could put that into my pension, but was doing that for years, then lost almost all of it.

I could put it into my ISA, but I'd be tempted to dip into it every time the car or the house needed a repair, and even if I didn't, it would devalue over time because inflation is higher than interest.

Or, I could buy something that isn't going to go away. I bought my piece of land. Now I own a small chunk of countryside which provides me with lots of leisure opportunity, and may in time save me from poverty in my old age.

I don't trust banks with my money, I don't trust the government, and I don't trust pension 'trustees' who's stance seems to be, you give us your money, we'll take a percentage of it for our wages and gamble the rest. If the gamble pays off, we'll take a cut for our bonus, then gamble what's left. If we lose it, we'll just get you to give us more. Either way we'll just keeping paying ourselves with your money and gambling the leftovers.

EDIT: Almost forgot.

The pension companies aren't just content with gambling your money while you're paying in. When you retire, they will take another gamble with your money as well as those still paying in. They will place bets on how much long you will live, then work out your monthly payments based loosely on that. If they guess wrong, and you live longer than they expected, then they'll make up the difference from other people's pension pots. If they guess wrong and you die before they'd betted you would, then they are quids in.

 

If the British bankers are involved then they will "Invest" it in Greece :-)

Jack McH

 

Greece would be a good investment. Give it another 6 months or so and you'll be able to buy it for about a fiver. At that price its worth a punt.

 

im not a pessimistic person, but i agree with all that has been said. its a shambles and will not get any better, not for a very long time anyway.

you work hard, and you end up paying. it is very wrong, but sadly, the powers that be benefit at the end. we are all minnows in a sea of pikes.

but hey ho, i dont worry about the things i cant change.

 

• Need not to live so long (ie die sooner )
• Need to have less children

 

Sounds about the right price if you take on their pensions liability.

 

I don't think you'll find either minnows or pikes in the sea. I think they're both fresh water fishes.