Too Poor to Retire?

[Ian Marshall]

I don't expect it to be run for free - but nor is there a need to make great profits from running it.

You want people who know what they are doing though don't you? And they don't come cheap.

I do accept that the banking, investment and insurance industries need to hold their hands up to some previous misdemeanours, but I'm interested to learn where you're going to find these people/organisations to do a better job of it for zero renumeration? Or is the state funding it, which of course costs us all indirectly in the end anyway?

 

[Matt_B]

[I may be wrong] Also, when the public sector pensions were set up with such good benefits, they were seen as compensation for the lower average wage compared to the private sector. In the public sector people are now earning more than they used to in comparison to the private sector (maybe even more?).

I can't see how this can be so with Teachers. I was earning £30k a year with 4 years experience in the private sector, it will take me around 7/8 years to get back to that salary as a Teacher. The pension is obviously fantastic, and I have no object to having to pay a bit more into it. What I do object to is having to work longer and get less, especially considering the salary freezes look set to continue making my real cost of living a lot more.

 

[Han]

http://www.amazon.com/Storm-Proof-Your-Money-Portfolio/dp/0470482680

I just got done reading this book, it was bought for me by my FIL so a lot of it is US based however it does give very good examples about the money we waste continually on stupid things rather than putting away into a pension.

I think in the next 18-24months employers will have to offer a pension scheme, it would be crazy not to take them up on it. http://www.businesslink.gov.uk/bdot...773&r.l3=1073912964&r.s=tl&topicId=1084109972

Nice link!

Nice to hear an employer be so positive about pensions (you're an employer, right?)

You want people who know what they are doing though don't you? And they don't come cheap.

I do accept that the banking, investment and insurance industries need to hold their hands up to some previous misdemeanours, but I'm interested to learn where you're going to find these people/organisations to do a better job of it for zero renumeration? Or is the state funding it, which of course costs us all indirectly in the end anyway?

As long as you know what and who you are paying, and you get the right service for your money then there should be no complaints about costs.

 

[Ian Marshall]

As long as you know what and who you are paying, and you get the right service for your money then there should be no complaints about costs.

Correct.

 

[Feriol]

You want people who know what they are doing though don't you? And they don't come cheap.

I do accept that the banking, investment and insurance industries need to hold their hands up to some previous misdemeanours, but I'm interested to learn where you're going to find these people/organisations to do a better job of it for zero renumeration? Or is the state funding it, which of course costs us all indirectly in the end anyway?

I don't think the suggestion was that people shouldn't be paid appropriately for what they do, rather that the organisations managing the pensions should be non-profit. (just cover the costs)

 

[bocadillo]

You want people who know what they are doing though don't you? And they don't come cheap.

I do accept that the banking, investment and insurance industries need to hold their hands up to some previous misdemeanours, but I'm interested to learn where you're going to find these people/organisations to do a better job of it for zero renumeration? Or is the state funding it, which of course costs us all indirectly in the end anyway?

Of course you need people who know what they are doing - and of course they don't come cheaply. But banks and insurance companies are in the business to make profits for their shareholders and not necessarily to act in the best interests of their customers/clients. I am sure that none of the people who work for my pension provider (part of the Local Government Pension Scheme) are volunteers - but I'm equally sure that they do not draw the kind of outrageous bonus payments that are common in the businesses that look after private sector pensions. And to answer your question about state funding, the 'state' funds the employer's contributions to the individual's pension fund, but not the administration of the scheme.

 

[The Major]

But banks and insurance companies are in the business to make profits for their shareholders

A lot of those shareholders are pension funds.

 

[Han]

Of course you need people who know what they are doing - and of course they don't come cheaply. But banks and insurance companies are in the business to make profits for their shareholders and not necessarily to act in the best interests of their customers/clients. I am sure that none of the people who work for my pension provider (part of the Local Government Pension Scheme) are volunteers - but I'm equally sure that they do not draw the kind of outrageous bonus payments that are common in the businesses that look after private sector pensions. And to answer your question about state funding, the 'state' funds the employer's contributions to the individual's pension fund, but not the administration of the scheme.

I assume that you mean public sector schemes here?

No doubt there are people receiving big bonuses in most companies. Where there is big money there is always going to be a lot of risk, and therefore reward (I am not condoning the massive pay-outs that some receive).

Perhaps a Friendly Society would be more your 'cup of tea'.

 

[Chuck T Masala]

I'm thinking about a plan for my old age (whatever that means). Once the I find finance a problem and/or I can't look after myself I plan to shoot an Investment Banker or Hedge Fund Manager and spend my remaining days in prison. Three meals a day, regular showers and health-care, Christmas dinner, TV, time to start the books I always meant to read and/or write. Beats life in a care home and I think I could cope with the bum sex.

 

[Ian Marshall]

Of course you need people who know what they are doing - and of course they don't come cheaply. But banks and insurance companies are in the business to make profits for their shareholders and not necessarily to act in the best interests of their customers/clients. I am sure that none of the people who work for my pension provider (part of the Local Government Pension Scheme) are volunteers - but I'm equally sure that they do not draw the kind of outrageous bonus payments that are common in the businesses that look after private sector pensions. And to answer your question about state funding, the 'state' funds the employer's contributions to the individual's pension fund, but not the administration of the scheme.

As has been pointed out, a lot of those shareholders are pension schemes.

I'm not being argumentative here - at least not for the sake of it. I'm just struggling to see what it is that causes you ire.

Those individuals who are being paid mega bucks in the banking/insurance worlds are not as numerous as the tabloid hacks would have you believe, although I agree some of them are on ridiculous money. Those organisations who place their pension arrangements with private sector type schemes have a huge choice about what sort of scheme to go to and with whom.

You pay your money and take your choice. Until you have zero choice of who to work for or the company you work for has zero choice in what each of its employee's pension arrangement options are, then I don't see the problem.

I pay in to my pension willingly - and aware of the risks. I can completely understand the frustration and anger when schemes do fail, as in Cate's situation however.

In conclusion, I don't really know what my point is and perhaps I am indeed arguing for the sake of it.

I work in insurance by the way.

 

[Ian Marshall]

I wanted to add as well, I'm poor now, will be poor next year and will be definitely be too poor to ever retire, unless my wife's public sector final salary type pension can keep me in gin, floral shirts, tweed and the occasional LCFC ticket.

 

[Steven]

I'm 28 and am not paying into a pension yet. I have no confidence in pensions, with around 40 years before i retire i doubt any pension i were to start now would last without me loosing out at some point along the way.

Then I suggest you buy at 10K Sterling (at least) worth of Swiss Government Bonds in Swiss francs and allow them to compound until you retire. Indeed to anyone who is 18 now I would say do the same. Pension sorted. :icon_bigg That said I have little in the way of a pension myself but I propose to use the cash I do have and can earn over the next twenty years or so to pay for my retirement. :icon_wink

 

[drew]

I've started reading the Naked Trader, interesting book. I intend on setting up a SIPP at some point in the next 2/3 years and managing it myself.

Han, if you're interested in setting up the scheme for us and our employees drop me a PM.

 

[spionfox]

For some time people thought that putting there money into property was the answer.

Not like you Boc :icon_wink

 

[spionfox]

That said I have little in the way of a pension myself but I propose to use the cash I do have and can earn over the next twenty years or so to pay for my retirement. :icon_wink

Be careful not to get caught :icon_wink

 

[bocadillo]

Not like you Boc :icon_wink

Not the first time you've said that about that little error - and I'd guess it won't be the last.

 

[spionfox]

Not the first time you've said that about that little error - and I'd guess it won't be the last.

I'm reading this wondering if that statement says more about me or you :icon_bigg

 

[bocadillo]

I'm reading this wondering if that statement says more about me or you :icon_bigg

... or both?

 

[SwedeFox]

I'm thinking about a plan for my old age (whatever that means). Once the I find finance a problem and/or I can't look after myself I plan to shoot an Investment Banker or Hedge Fund Manager and spend my remaining days in prison. Three meals a day, regular showers and health-care, Christmas dinner, TV, time to start the books I always meant to read and/or write. Beats life in a care home and I think I could cope with the bum sex.

Read the Daily Mail much?