Wednesday, Feb 10, 2010
A very real problem
Telegraph: Pension income falls 70pc in a decade
Falling stockmarkets and annuity rates have decimated pension income over the past 10 years, according to Moneyfacts. In its quarterly insight into personal pension payouts it revealed that the average personal pension pot has dropped by a staggering 60 per cent over the last decade.
According to the survey, someone who had paid £100 gross per month into a balanced managed fund for the preceding 20 years would have built up a pension fund of £40,749 if they retired now, compared with £103,914 if they had retired a decade ago.
Posted by dill @ 02:03 AM (602 views) Add Comment
13 Comments
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1. paul said...
But interest rates must be kept low to protect hard working famblees.
2. Crunchy said...
1.
Welcome to the democratic ever hallowed church of bubble worship.
They don't need people like atheist savers! The holy grail is still working for those that keep rewriting the big book.
"On your knees Paul and repent, REPENT"...... The Bishop of bubbles will see to you later boy, once you have filled the collection basket!
3. str 2007 said...
Oh and the best thing you can do is start paying into a pension as early as possible.
Yeah right, & then get royally shafted by the City and Governement for your prudence.
4. estrader said...
"would have built up a pension fund of £40,749 if they retired now, compared with £103,914 if they had retired a decade ago."
But if you bought a property for £40,749 a decade ago it would now be worth £103,914...
This country is just going in circles.
5. Crunchy said...
3. estrader
The difference this time is that it is the banks fictitious, now real money is on the line.
That's not allowed, but the other pension thingy ma jig is.
6. need-a-crash said...
Yeah who needs a pension when you can just flog your house to some gullible FTB who'll happily borrow 10x salary for a shoebox. Well guess what, this mug isn't about to do that, it's either hpc or emigration as far as I'm concerned!
7. letthemfall said...
60% drop. More than decimated then. Heximated?
Pensions are a bigger iniquity than housing. Why have funds and annuities dropped so much? Disastrous investments by the experts who are paid very handsomely for their incompetence, bringing markets and interest rates crashing down. Pensions are a good example of how wealth has been steadily transferred from the majority to the minority - all in the name of free markets.
8. mark wadsworth said...
LTF, agreed, the pensions industry is a vast, taxpayer funded scam. In the absence of tax breaks, it simply would not exist.
Let's scrap all the reliefs, cut income tax (or even better, cut VAT) and have a proper small shareholder culture again, rather than the big boys in the city just shovelling money round in ever decreasing circles.
9. inbreda said...
@4
I agree. HPC or emigration. I want the election over with so I can assess properly which it is going to be. At the moment I feel like I am going nowhere. HPC doesn't seem to have started - but then it doesn't seem anywhere near from over yet!
10. monty032 said...
Of course, if you work in the public sector then you are looking forward to retiring at 60 on a 2/3 final salary pension paid for by your children and grandchildren's taxes. Stock market performance and annuity rates are no concern of yours.
11. rumble said...
"pension paid for by your children and grandchildren's taxes"
Assuming employed.
12. nickb said...
@8
If you're working in the public sector probably you are earning F-all. Unless you are one of a relatively few lucky managers. Plus I thought even councils are trying to close final salary schemes to new entrants.
13. letthemfall said...
Let's just banish the myths about public sector pensions. The only pension that is solely funded through taxation is the state pension, and even to get that one has to make NI contributions for so many years. For the occupational schemes the non-contributory civil service one disappeared some time ago; all are now contributory and the contributions and retirement ages have risen for most or all of them as longevity increases.
The defined benefit schemes are really exemplars of how pensions should be run. So many private schemes are a racket that charge large amounts for being badly invested and badly managed (eg the employer contribution "holidays" that so many private schemes took when markets rose strongly in the 90s - how's that for foresight?).