Pensions

Goonerhater

Just had my yearly statement on a very small pension that i strated/had when i worked for a firm few years back. Its LOST nearly 20% of its value in one year ! If you have a private pension or in a company pension it might be a good idea to ask for a statement.

Dazzler21

Only problem with Money Purchase (or Defined Contribution) is that it rises and falls with the stocks.

Final Salary (Defined Benefit) is a much safer pension system and a lot easier to project.

Addick Addict

[cite]Posted By: Dazzler21[/cite]Only problem with Money Purchase (or Defined Contribution) is that it rises and falls with the stocks.

Final Salary (Defined Benefit) is a much safer pension system and a lot easier to project.

Sadly, unless you're a Civil Servant or work for a large PLC you won't be in a Final Salary Scheme because the funding of FSC are too prohibitive to most Employers. In addition, a number of those Employers who do offer FSC are closing them to new employees and offering them MP matched contribution schemes only.

Dazzler21

indeed it is a sad state of affairs!

golfaddick

The top 100 UK shares (FTSE 100) has fallen around 40% from last May to early March of this year -and then has grown over 15% since thien.

A 20% fall is about average as most pension funds also include government gilts and corporate bonds as well as shares - best thing is to reviw it annually and discuss the fund (s) that you are invested in with your pension advisor.

Dazzler21

I know someone whom has seen their pension drop 60% but please people do not pull your funds out of your current shares unless advised to do so by an IFA!

nth_london_addick

i must say that the state of pensions in the current climate worries me, My company ploughed in 30mil to ensure that those on Final salary pensions could keep that benefit however new comers can only get the defined contribution.

that was before the current climate i am cacking it that, that was not enough to ensure we keep the final salary pension as both me and the mrs (who works for the same company) will be extreemly secure financially should we stay in our jobs until pensionable age.

Dazzler21

Just so you all know people can elect to take a tax free Lump sum on retirement from FS that will bring your pension down but give you the money to pay off a mortgage and get a speed boat as well as a convertible!

golfaddick

careful Dazzler............when the pension rules changed in 2006 the "tax free" wording was revised and is now called "pension commencment lump sum" .

Call me a cynic, but when governments like the lot we have now drop the words "tax free" an insert "pension comencement lump sum" you know you are in trouble somewhere along the road.

pickwick

Mine has fallen about 25%, remember this will be reflected in any endowment type mortgages you may have too.

LargeAddick

luckily I'm in a FSS otherwise I'd be really worried.

Leroy Ambrose

there was a story on the BBC earlier today that really drove the pension timebomb home - more than half the population are not paying into a pension at all - amongst the under-30s this figure drops to around a third. I'm among them - I have eight years of a Civil Service pension from my early years at work, but haven't had one at all since I've been in IT (apart from my current company, which will pay 2% without me making a contribution myself). It stinks - but I just can't afford it - and I earn decent money.

northstandsteve

anybody who gets a work pension,should count themselves bloody lucky,try being self-employed and finding the money to invest.

WSS

I've started pumping in a pension this month at the age of 27. Thought it was time to grow up - firm contribute sweet FA.

SE10Addick

I'm 32 and have never started a pension.

I know i need to but like Leroy - i just cant afford it.

It does worry me though.

charltonkeston

[cite]Posted By: northstandsteve[/cite]anybody who gets a work pension,should count themselves bloody lucky,try being self-employed and finding the money to invest.

Its not just finding the money, you've then got find a decent investment/s

JT

i've just started my NHS Pension.

Thanks for listening.