Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Thousands Told Their Pension Savings Could Be At Risk

Recommended Posts

http://www.bbc.co.uk/news/business-35560788

Thousands of workers who have been encouraged by the government to take out pension plans could be at risk of losing their savings, the industry regulator has told the BBC.

It follows fears that dozens of companies providing auto enrolment pensions are too small to survive.

The BBC has also uncovered evidence that employers and workers are being deliberately misled by some providers.

The government said it was aware of the issue, and was planning to take action.

Independent experts claim the problem could affect up to a quarter of a million people a year who are putting their savings into so-called master trust pensions.

Such schemes are popular with the 1.8 million small employers with fewer than 30 staff who are currently signing up under the auto enrolment programme.

"There is a risk of these schemes falling over; there is a risk that members might lose their money," said Andrew Warwick Thompson, executive director for regulatory policy at the Pensions Regulator.

They need to get into BTL, now that's a guaranteed pension plan.....

Share this post


Link to post
Share on other sites

The cynic in me wonders if pension policies in the UK are geared to making retirement impossible for most people.

Share this post


Link to post
Share on other sites

As an SME I think the auto enrolment situation is stupid. I'm meant to sort out the pensions for my 3 employees, all part time but over the auto enrolment threshold - it is a massive burden given the number of staff - I'd be very happy to just give them a bit more money for them to sort out for themselves, but I'm not allowed to do that. (just to put it in perspective they earn around £75k full time equivalent (more than me in the last FY), and they're all free to work elsewhere, so I'm not being mean here). So we just sort it out via NEST, but it is still a hassle for something that none of us want - it isn't too onerous, just wasted effort that isn't spent building the business.

But it is all up to me - and I'm clearly an idiot when it comes to pensions (or at least, there is no guarantee that I'm not an idiot) - so I might just sign up to some scamful outfit to do my employee's pensions. They don't really get a say (auto enrolment), and maybe I get a few bungs for throwing the money their way (I don't know if this is true - but it is financial services so you might as well assume that it could be true). No one seems to be checking that I've done everything in the best way for my employees.

So - sounds like a great area for the scummy end of financial services to move into. Sounds like they knew this 12 months ago... We'll find out properly when they all go to the wall when the next revolution comes.

Why oh why can't we say that if you've got fewer than 30 employees (say) then there is an exemption - that would sort out the main areas for problems to emerge - and simply 'encourage' those staff to sort their pension out.

Share this post


Link to post
Share on other sites

If there's any truth in this story, it's the system working remarkably well. An early warning when the scheme has only just started and noone has vast amounts invested in it.

Unlike the Equitable, where some victims lost decades worth of pension. And unlike TPTB deliberately slashing pensions with QE.

Edited by porca misèria

Share this post


Link to post
Share on other sites

wow this is like winning the lottery - I may not have been able to buy a house but s*** I'm so pleased to have filled out my opt out even if they made it bloody hard to get any help on how, when and what to do. My employer was reluctant to tell me how because they thought they'd get done for encouraging employees to exit! :blink:

Share this post


Link to post
Share on other sites

The cynic in me wonders if pension policies in the UK are geared to making retirement impossible for most people.

If you're 60+ now, you're fine. If not, you're f&cked. All government policies work in the same way.

Share this post


Link to post
Share on other sites

Pension savings have been at risk since the 1990's when the government first started helping itself to the funds. Remember if you are trying to play catch-up now once your mortgage payments have dropped and your kids are able to fend for themselves you will be trying to hit a moving target that will accelerate post budget and you won't have a cat in hells chance as NIRP becomes entrenched.

Share this post


Link to post
Share on other sites

I worked for a small company back in 2000, a VC-funded startup. I was putting away 15% of my salary at the time, verified on my wage slip each month.

When the first anniversary of contributions came round, I noticed I hadn't received a statement from the pension provider. So I called them and they said they hadn't received any money. The employer simply deducted it and kept it.

That day, I walked out, taking the engineering team with me (only 4 of us but felt like a revolution at the time). We got bankers drafts by the end of the day.

I've been in other VC funded companies and they seem to treat their staff like (financial) idiots. A bunch of lying sharks, everyone of them I've met. It's the reason why I'll never invest in VCTs, no matter how good the tax breaks. It justs pays for the VC caviar bill.

Share this post


Link to post
Share on other sites

If there's any truth in this story, it's the system working remarkably well. An early warning when the scheme has only just started and noone has vast amounts invested in it.

Unlike the Equitable, where some victims lost decades worth of pension. And unlike TPTB deliberately slashing pensions with QE.

Or its a sign that it is utterly ******ed and likely to blow up so soon or for it to be exposed they daren;t not do anything.

Share this post


Link to post
Share on other sites

The cynic in me wonders if pension policies in the UK are geared to making retirement impossible for most people.

Oh, I think it's much simpler than that....the government is gradually and methodically making sure you take out a pension that supports the sh*ty of london.

It will eventually become compulsory...i.e. a direct tax that goes to the governments mates in London.

When it happens, it's another sign to GTFO

Share this post


Link to post
Share on other sites

As an SME I think the auto enrolment situation is stupid.

It's not stupid in the context that it tricks many people into contributing to the sh*ty of London and keeps their economy buoyant.

It's a "gunpoint ponzi".

Share this post


Link to post
Share on other sites

I sense a scandal brewing here....

Possibly but if the SME 's have gone bust who do they claim from?

Share this post


Link to post
Share on other sites

The person who came into work to explain pensions was awful and clueless. Kept saying "All you ever hear is shares went down, but never that the recovered" and then kept showing a graph of the FTSE 100 with selective dates to show it only ever goes up.

Basically he all he was there to do was sell people on three different pensions. The adventitious (icon of a skier), the normal (stick man) or the cautious (someone reading a book).

He was dumbfounded that I wanted something custom, I doubt anyone had ever asked for anything other than the three stick men.

I said shares are in a bubble (ftse about 7000 then) he laughed and was very patronising and clueless.

He probably makes a decent income going round people getting them to pick a stick man.

Share this post


Link to post
Share on other sites

The BBC has also uncovered evidence that employers and workers are being deliberately misled by some providers.

The government said it was aware of the issue, and was planning to take action.

Didn't they say it was all sorted out now - the crooks.

Share this post


Link to post
Share on other sites

If you're 60+ now, you're fine. If not, you're f&cked. All government policies work in the same way.

Hence why I opted out of my pension scheme. (I'm 27)

Pension reforms and liberation- Who benefits: Financial Services

Pension auto enrolment- Who benefits: Financial Services

Conservative Party- Who funds: Financial Services

Following the money leads me to the City of London creaming it again with the help of Osbourne and co.

Share this post


Link to post
Share on other sites

Oh, I think it's much simpler than that....the government is gradually and methodically making sure you take out a pension that supports the sh*ty of london.

It will eventually become compulsory...i.e. a direct tax that goes to the governments mates in London.

When it happens, it's another sign to GTFO

I think compulsory pensions are a distinct possibility, the chances of being able to save enough to retire are increasingly slim - that being the case, why put money into a pension voluntarily? Think its safe to say TPTB want to avoid a scenario of people expecting the state to provide pensions - far too expensive.

Share this post


Link to post
Share on other sites

Hence why I opted out of my pension scheme. (I'm 27)

Pension reforms and liberation- Who benefits: Financial Services

Pension auto enrolment- Who benefits: Financial Services

Conservative Party- Who funds: Financial Services

Following the money leads me to the City of London creaming it again with the help of Osbourne and co.

The old style pensions were very much a fees rip-off. They took 5-6% initial commission and another 1-2% every year. As a clueless 21 year old, I fell for it. That put me off pensions for a decade until the sub 1% deals came along.

My current pension has a £200/year platform charge. I expect trading fees of ~£300 in the first year but that is offset against a £500 cash back offer => basically my charges are £0 for the first year. I don't plan to trade for a very long time after that. I don't hold unit trusts which incur extra fees.

So I'm paying out only £200/yr total from year two onwards. The overall percentage I pay to the city boys is 0.08%. I think this is well worth it to avoid a 65% marginal tax rate.

Share this post


Link to post
Share on other sites

The person who came into work to explain pensions was awful and clueless. Kept saying "All you ever hear is shares went down, but never that the recovered" and then kept showing a graph of the FTSE 100 with selective dates to show it only ever goes up.

Basically he all he was there to do was sell people on three different pensions. The adventitious (icon of a skier), the normal (stick man) or the cautious (someone reading a book).

He was dumbfounded that I wanted something custom, I doubt anyone had ever asked for anything other than the three stick men.

I said shares are in a bubble (ftse about 7000 then) he laughed and was very patronising and clueless.

He probably makes a decent income going round people getting them to pick a stick man.

Funny that.....doesn't surprise me though, about sums it up.

Share this post


Link to post
Share on other sites

The old style pensions were very much a fees rip-off. They took 5-6% initial commission and another 1-2% every year. As a clueless 21 year old, I fell for it. That put me off pensions for a decade until the sub 1% deals came along.

My current pension has a £200/year platform charge. I expect trading fees of ~£300 in the first year but that is offset against a £500 cash back offer => basically my charges are £0 for the first year. I don't plan to trade for a very long time after that. I don't hold unit trusts which incur extra fees.

So I'm paying out only £200/yr total from year two onwards. The overall percentage I pay to the city boys is 0.08%. I think this is well worth it to avoid a 65% marginal tax rate.

Can you see that lasting?

One thing about pension legislation is it that NEVER seems to stop morphing.

5 years ago if anyone had suggested that boomer pension cash would be released in to the woods, it would have been met with derision.

Now look. And now theres this rumour that Osbo is about to remove the 25% tax free element too.

I have kept my money OUT of the pension system, bar a few years, when i forced myself in to believing i was doing the right thing.

I will be taking mine under trivial commutation or whatever its called, though i guess with Osbos tinkering, i dont now need to invoke that anyway.

Not at the moment anyway.

Share this post


Link to post
Share on other sites

When a pension or pensions pays out less than £10k PA everything is tax free anyway.....most people's work pensions I would say over a working lifetime would payout less than that...debt and rent still to pay...

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   100 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.