Are Pensions A Scam?
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- Опубліковано 12 чер 2024
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Timestamps:
00:00 - Scam
00:41 - Missing funds
03:39 - Bad advice
06:34 - Sponsor
07:34 - Political Meddling
10:00 - The Auto enrolment scam
13:43 - Incredible
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I think I'm too far gone for this to help!
Used for 3 months and you reccomend lol. Everyone has a price don't they!
@@adamfromabove84I have been using it for much longer than 3 months.
Thank you for your videos.
Where’s there’s money, there’s scams.
They are not user friendly definitely. Why do we have to ‘track down’ old pensions? We should be able to log into a government website with our NI number and get a simple list and contact info for all providers we’ve been signed up to - all the info should be available easily. Being able to just ‘lose’ billions because you can’t find a bit of paper is insane.
100%
Also since you can't move them to another country, when you work in several countries, you can leave small pots in pensions and 40 years later completely forget it exists
Spot on, why even have a national insurance number if it doesn’t do the job of giving your financial identity, they know exactly how much tax you owe and can imprison you if you avoid it but it’s okay for them to act clueless when you want to know where your pensions are, governments should be held to same accountability as its citizens but yeah I think that concept will only ever exist in fiction.
They are currently developing a pensions dashboard which will enable this function. I believe it's meant to be available from 2026.
My grandad was one of those whose retirement was stolen by Maxwell, an event he never emotionally recovered from. I agree with all of your points Damien. I’ve build up more wealth in my 20s inside my sipp than I have equity in my home - even after the crazy years of growth in the uk housing market. A pension is not a scam, but unless you choose to get educated on how to use the system, you will lose.
Really sorry to hear about your grandad mate Maxwell robbed normal people of their retirements just so he could keep up appearances.. Coward of a man.
SIPP, is good, on paper but it is in the control of the government, who will mess around changing the system itself. They are about as trustworthy as Bob Maxwell managing it. I’ll continue to save into the SIPP, but as a long term bet, lack of accessibility and control makes them a bit of a punt. So no matter how much you understand the system today, who knows what it will be in thirty years time.
@@philipjamesparsons check your terms and conditions. Your withdrawal age might be protected in your current scheme.
@@CloutMasterGeneral Thanks, I’d never considered there would be such a thing as a protected age. Previously, it would see, some schemes did have this, hard to get today. My SIPP is with Vanguard who say “The Vanguard Personal Pension (SIPP) doesn't have a protected pension age. As such, you can access your Vanguard SIPP from the minimum pensionable age, this is currently age 55 as per government regulations, and we will be required to adjust this as the regulations change in the future.” So, I stand by my original beef with the SIPP. Hard to know when you can access it and on what terms as they are likely to change as the government changes the system.
Majority of them collapse or have hidden fees you better in property and to say otherwise is devoid of reality
I used to pay into my workplace pension for about 15 years because it had always been drummed into me by everyone, including all media, that it's the best thing to do. I opted out a few years ago because I realised that it wasn't right for me, as I'd rather have the money now, than wait until I'm in my late 50s/early 60s to access any of it. I may not even live to that age. I recently transferred the amount that I had previously built up, to a SIPP. It's far more transparent than the pension I had, and I have complete control and visibility over where the money will be invested. I wish I'd done this years ago, but better late than never, I suppose.
It is a scam when the government keeps increasing the state pendion age which means you can't access your private pension pot 10 years prior to state pension. It annoys you that you plan to take your private pension at 55 then it goes up to 57 then 58. You kind of start to think whats to point paying in for 30 or 40 odd years!
True, and I can be inclined to hold out on drawing from my pot after,say, 55 but I would rather that be my choice and not the government's!
55? Its 68
The normal minimum pension age (NMPA) for taking benefits from a private pension was set at 50 when it was first introduced on 6 April 2006. The current NMPA is age 55, having been increased to that age on 6 April 2010. A further increase in the NMPA to 57 is due in 2028.
@@rikg280 aww sorry I thought he was on about retirement age. I heard on LBC that they are already looking to increase it from 68 to 70.
Private pension access age is still 55, going up to 57 from 2028. Typically it will track 10 years behind the state pension age.
Correction Damien - The personal pension age is not linked to state pension age in legislation, the only legislation currently is the raise to 57 from 55 in 2028. There was a vague suggestion by the coalition government to make it State Pension Age - 10, but that has never been written in to legislation, but unfortunately its sort of stuck and is often repeated. Not saying that any future government won't make changes, but just clarifying that the only confirmed raise is the 55 to 57 one in 2028.
Thank you for clarifying this!
Dude, life is a scam.
This user could have spoken any language in the world, but he chose to speak facts.
Yes because that’s how the world works. I make something on the cheap then sell it to you for way more then what I paid. You can’t make money without someone being exploited or scammed. We pay tax for the government to provide us with services like healthcare and roads but not for it to be syphoned off to rich Tory donors.
And death is a scam too.
Dying is expensive and then they take inheritance tax as well.
Jeez, strip it all back. You’re right
🤣🤣🤣
At least it’s the weekend mate!
I always remember in the early 90's (when I was a teen) some scumbag pension 'adviser' coming to my parents house and abruptly walking out mid way on us because my dad dared to ask him about a fund or investment company he wasnt affiliated with. The audacity and rudeness of the guy put me off pensions for life! I thought they were all scammers on massive commissions. Thank God for the internet & channels such as pensioncraft and yourself came along to help us make more informed decisions.
What people don't understand is pre/early internet these types of 'advisers' were absolutely rife!! ready to skim off a high percentage of you cash forever and gain a massive commission into the bargain.
Seems like this was far too common at one point.
Scottish Widows were notorious in the 80/90s.
@@DamienTalksMoney Fortunately those days are long, long gone. The ‘bar’ to being a regulated financial adviser has been raised significantly since then. The risk is in the public approaching pension-provider companies directly, speaking with a telephone-based operator and mis-believing that that conversation constitutes ‘advice’.
Another great video Damien .Would you be able to cover pension options for people running their own business ? Thanks
I'm so glad I found this channel. I worry about this stuff as I find the Information hard to take it but the way you break down things in a normal blokeish way is a god send for me. Thank you so much. Your channel is about to blow up
Thanks! Glad I can help you feel better about this stuff. We should feel good about our finances
The best bit with a pension is getting tax relief on the way in, but on the way out you can transfer your pension to a QROPS in another country which is a financial product that recognizes the UK pension rules. The only difference is you pay taxes in the host country! so emigrating right before retirement can save you a boat load of tax in the host country as you pay at the tax rate in the country you moved to and not the high level UK tax. And the best bit is HMRC gets £0 and it's perfectly legal.
Might I ask what countries qualify for this and how would you check if the agreement is still in place by the time you retire ?
@@linasg90I'm interested to hear which countries too. 🤞🏻
Sounds like the perfect recipe to tackle population growth and mitigate immigration issues, while the govment shoots itself in the foot
Very interesting! Have you got a link to more info?
@@linasg90
HMRC have a list.
www.gov.uk/guidance/check-the-recognised-overseas-pension-schemes-notification-list
Dude! I love ur videos and advice! It’s always amazing checking in and keeping current, learning and knowledgeable from u! Thanks
damien you mentioned a great point about shifting money over from your workplace pension provider over to a SIPP every so often, i’ll be maximising this as my work pension provider currently has 4x more fees than Vanguard SIPP
Hopefully your provider allows this! Not all do but if they do it’s an amazing way to reduce fees
Brilliant timing!
Very articulate delivery as always Damien. Many thanks for your advice and knowledge. I will be using your links below to check on my own Pensions :)
Great video, probably the biggest scam is the fee’s associated with default funds, auto enroll has created an entire industry of high fee employer schemes.
Call me pessimistic but I'd imagine that's exactly what the main objective was
Generally the opposite. When AE was launched in 2012, the annual management charge (AMC) was a maximum of 0.75% for default funds and remains so today. However, since then, some providers have reduced the AMCs below 0.5% to become more competitive and offer better value to members. They can also apply a fixed charge in addition to the AMC and there can be some variation, both in the AMC and Annual Charge (AC), between providers. As operating costs have increased some have increased the AC in recent years.
Some providers reduce the AMC, the greater the pot value. Small pots held by a large portion of members in some AE schemes attract the same pension levy fees as larger pots.
Consolidation can benefit both providers and members, enabling the provider to reduce the AMC %, the greater the value of a pot either by reducing the AMC % itself or providing a regular rebate to member pots, thus achieving the same thing.
Workplace pension schemes are chosen by employers. It is important to review the fees when leaving an employer/the scheme and considering whether it would be in your interests to transfer the pot you’ve accrued to another provider, perhaps the one chosen by your new employer. In some cases it could be worth transferring, in others staying put.
Investment returns should also be considered. Imagine transferring to save 0.3% in the AMC but seeing your new investment fund under performing compared to that you just left by 4% pac.
The high fees I believe are government led to repay the billions it cost to set up the auto pension schemes in the first place.
You would think that given the massive amounts of cash coming into the top ten auto enrolment providers that they would not need to be part of this excessive charging.
The fee is one issue but likelihood is you're missing out way more by the risk level of the default fund being too low for young investors
My Aegon default fund has a 0.06% ongoing charge, plus any underlying transaction costs within the fund. I think total fund charge is about 0.15%. The overall total charge is 0.5%
I remember in the early 80s a mate worked for Irish Life. He conned me out of £2,000. Never seen him again after that but did learn years later he is now a multimillionaire. I was so disgusted and angry I shredded my policy in the 80s and now Irish Life who come under another name cannot locate anything related to me. I hate this ex-mate who conned me and did a runner. He put me off pensions and ISAs for decades after that and basically ruined my trust in saving money anywhere.
But that’s like having a really bad bust up with a girlfriend and consequently vowing to be celibate for the rest of your life. Illogical.
@@markcoomber8222 not necessarily. Have you ever been cheated on by a girlfriend or scammed out of money. A guy who gets cheated on and then gets straight into another relationship is desperate. Someone who gets scammed becomes cautious.
Standard life, yes they do partial transfers but only once every 3 years. Good selection but they want 0.4 for main funds and upwards.They don’t show management fee, just give a single fund ocf value which is about .2 ish above the fund value.
Love it Damo! I am waiting for a transfer from SW to SIPP to V. I have asked SW how many times I can do a partial transfer in a year and the response was as many as I want. Happy days! Take care Damo!
Brilliant video, well presented. Thank you
You do it yet again, making informed, precise, detailed financial information, thank you Damien...keep it up..
Hey Damien,
Great info, thank you.
When are you going to add the Royal London in here? Have been waiting for that for a while… looking forward to :)
Amazing practical advice! Looking forward to the Royal London analysis on the pension fund sheet :)
I will get that done in the next 7 days for you! So take a look this time next week
Legend! 🙌
Thank you!
I think Royal London charge way too much. Tied into to a policy that was protected rights SERPs until I am 55 so in 2 years I will be moving it to my company Standard Life as the management fees are very low !
Brillant and succinct information again Damien, thanks!
I love being self-employed but I do miss somebody else paying into my pension with me! 😂
Tell me about it!!! I also miss paid holiday 😓
Looking forward to our chat tomorrow
@@DamienTalksMoney make sure you ask Emma if her cruises are classed as a business expense and so tax deductible 😁 as i've alway wondered with many travel channels if this is the case as they are a business after all.
They almost definitely are tax deductible.
When you spot one of your favourite youtubers in the comments section of another of your favourite youtubers...😍
@DamienTalksMoney it's not a holiday it'd "filming on location"
I retired on a final salary pension last October at 54.
I'm so happy now as I hated working.
Thank you so much for these videos. It's teaching a lot.
I've been pretty bad with investing. I opened a vanguard account back in 2018 and really tried to understand the differences of each fund. I ended up putting in terrible funds that did very poorly and I totally got scared when it all cam crashing down in 2020 because I didn't understand why. So I totally missed out on these last few years haha
I have an L&G workplace pension and am being charged 0.12% platform fee and 0.1% for the global developed equity index fund. Which I think is reasonable. Some employers subsidise the pension charges so it's worth checking on this.
That sounds ok. Every now and again just make sure the performance of that fund matches an ETF that does the same e.g. SWDA, SWLD, VHVG
Great video as ever bud, love it
Exceptional video, really nice advice.
nice analogy at the end, good content as always
Love the content!
Defo your best video yet for those looking to put some money away but don’t know where
So weird! I watched one of your pension videos last night and thought if you would have a video explaining if pensions are a scam and 14 hours later you've uploaded this 😂💯
Jizzlain 😂 not sure if that was an intentional mistake or not
Jizzstain you heard it wrong
😂😂😂
Great vid. Keep em coming mr
Talking to my pension provider recently, it’s just them taking management fees for 50 years and eating all my profits.
What kind of fees are you paying? I do like mutual funds and I know some of them are expensive like the Golden Sachs ones are often more than others like BlackRock and Vanguard etc
I’ve recently increased my contributions after watching your videos. Thanks for information you share, it’s really helpful
Love this! Well done for making a positive change. I bet you barely notice the lower pay within a few months also and the impact it will have will be massive
I am a member of the Halcrow Pension fund. When Halcrow was sold to an American company, they gave members the option to lose 10% of their pension or fall into the PPS. They walked away from their commitments to benefit share holders. Members were forced to accept the change and the regulator and government allowed this to happen. You pay into a scheme for years with a promise to payout and then the rug is pulled out from under you.
As someone who has worked in financial compliance at a SIPP firm great insight thanks 🙏🙏
‘As some people are just knobheads’ 😂😂😂 too true haha put beautifully blunt and refreshing to hear someone say exactly what I’m thinking.
Damien please could you analyse Royal London pensions and add this to your spreadsheet? It would be much appreciated 🙏
In 1991 is was 19, and those kind of pension woes in the news, and my dad, were the reason I didn't want a pension. Now at 51, the realisation a few years ago has set me on the path for a better future.
The lack of control with Pensions is why I don't use it more. My stocks and shares ISA has performed much better than my work pension. I view it as more of a backup plan. Now if there was a pension where I could specify what the money is invested in that would encourage me to use it more.
These do exists, aviva is pretty flexible.
But by using an ISA you’ve missed out on a load of tax relief and potentially a chunk of employer contributions. This can mean doubling your money. ISAs useful but in conjunction with a pension not standalone in my opinion
Fidelity is super flexible
My work pension LifeSight with wtw
Is very very flexible
I can literally chose exactly where my contributions are invested
USA , uk
Bla bla bla
Another great video
“Some people are knob heads” really tickled me 😂
My big worry is that, (if I live long enough) because I have a workplace pension, I will be means tested as too 'wealthy' to have the state pension.
Seems the more you do the right thing, the more you are punished.
That's there Socialist UK for you...
This is why i will be using my pension before state kicks in… it’s not a choice more a realisation that my body won’t be able to continue until gov retirement age.
@p9917j yep. Other than the big boss, (who chills in an office and goes home at 2pm absolute latest) there is nobody else in my workplace at 60+.
Not many in their 50s come to think of it!
Can't see any Gov in future not paying those who have paid their NI contributions over the years not pay state pension. The reality is state pension will only be a top up at most and any quality retirement will have to rely on a personal pension
@@p9917jspot on once you hits 57 assuming you've built up well by that point it's Time to start withdrawing in the most efficient way possible.
SIPP is the way to go for me. I asked 25 employees at my family business about their pensions, most didn't even know who the Pension company was, they had no idea what investments the company was putting their money into or what the fees were when they are of age to withdraw.. I'm not a big fan of these 'generic' Pension Companies.
Thank you so much for highlighting the fees on these workplace pensions…
I’m in Nest and that 1.8% initial fee stops me from transferring because it’s quite cheap after the initial daylight robbery!
I do have some flexibility in advising my employer on who I would like to use BUT finding info on fees is ridiculously difficult.
Are there any other options that will not incur extra cost to my employer (obvs they won’t if it costs them more than nest) but get me a better deal to transfer money to my personal pension? I.e a smaller initial transaction fee but a higher ongoing charge .
In Canada our government pension (the CPP) is fully funded for at least the next 75 years. They make small adjustments, as needed, to ensure that it can continue. I think it's an important part of our social system and I'm glad we have it. That being said, it won't pay enough to rely solely on it for retirement - people should also be saving for their retirement individually.
You / developed world will eventually, have the same issues as the UK.
Canada's pensions rank 12th with a "B" grade as there are issues with long term sustainability. CPP itself says its solid for 75 years - but that's stretching facts beyond acceptable limits imho as it assumes things will go according to plan with investments, longevity, population growth, income and inflation for the next decades (if it was a private fund I'd say they where lying). Regardless, 12th is not bad and sound policy changes should be able to cope with any challenges ahead.
Savings lol from where?? There is a living crisis in the UK. 90% of people do not have £1000 in their account.
Pains me that people so often make these kind of misguided and ill informed kind of claims. They are not helpful in fostering an informed discussion about our socioeconomic challenges or possible solutions for real problems. Median weaith in the UK is over 300.000 GBP. There is lots and lots of money around. @@MOCHI-ek6rc
Canada is a third world authoritarian state that won't be able to provide anyone with anything in the next few decades.
the massive influx of migrants and refugees also hurt the economy and benefit system.
I’m with the fire brigade pension scheme and it’s changed 4 times since 2096 when I joined each time taking more % of my pay now 13.5% and almost halving what I get at the end, I signed a contract at the start but seems they can change that contract whenever they see fit without me needing to agree or sign anything. I just feel cheated already and still have 19years left to work.
It'll be a public sector defined benefit scheme no doubt. They don't change it, the government did. They took the pension age from 60, to 65, to whatever SPA happens to be by the time you get there. They took it from final salary to Career Average Revalued Earnings. All because they never invested any of the contributions and they're running out of workers to pay for the retirees. It's only gonna get worse with stagnating wages and public sector pay freezes.
My mates just packed in
As he told me main reason he has worked the required number of years to get the maximum fire service pension
But if he stayed , he would still have to pay a canny chunk of his wages into the pension scheme but wouldn’t get a extra penny on what he will already get anyway
I read the comments in your poll and it was horrible to read. I fully understand why some people see pensions as a scam and changing that is an uphill battle, especially when people don't understand how their pension works. So many people bury their heads in the sand.
My old workplace pension was with standard life and the fund fees were crazy, to top it all off i could only transfer out once every 3 years which meant you just have to put up with it until you're ready to transfer out. Really poor in my opinion.
Keep up the great content damo
It is a literal pyramid scheme because there's no pot being saved.
We're between a rock and a hard place. We don't trust our financial institutions but we can't really afford to put our entire financial futures in the hand of whichever government is in power. My mum resents her personal pension because she could have claimed pension credit if she didn't have it, her private pension seems pointless. But I have no faith that pension credit will even exist in 30+ years when I'm old enough for my state pension.
aging population, higher costs for young people.
anything that is forced for your own ''good'' is always a scam.
like taxes or anti gun ownership laws.
@@golagiswatchingyou2966 the pension pot is a myth, current pay IN goes immediately out to present reitrees
Thank you very Damien, great video.
OG 😎, truly love your content sir
Thank you!
I'd love you to do a fair review of St James Place!
A major issue is that people are invested in default funds within workplace pensions. These are totally unsuitable for long term investments held by young workers.
@DamienTalksmoney Are there any free tools to do Retirement planning? I see various tools used by advisors that have nice graphs that can take in DB & DC pension pots, expected spend etc and work out tax / spending life span / when you may run out of money etc. Is there anything free you have produced or anyone else? Thanks. Great videso and content by the way, you have helped me understand my Pension so much better.
The chances of us living to the pension age are super slim. Might as well just not pay in to it since we won't cash out
better to invest yourself then trust someone else to do it for you.
though it's not really a choice.
I understand your frustration at the pension age linking to state pension age. I'm a just couple of years older than you and have similar goals (and a Brummie for my sins). From a governmental standpoint however, given the shrinking workforce and demographic challenges we face, they will try and keep all of us within the productive workforce as long as possible. This pressure is only going to mount and I can see it both ways.
Thanks to your previous video on the topic I changed my pension to a lower-fee plan, index fund. And I told a bunch of friends about it. Thanks a lot!
I'd rather keep my private-pension contributions to a minimum. I am sure I'll do better by having access to most of the money now and invest them myself.
what video is it? ive been looking for ages haha!
@@sammilne__ " The One Thing You Need To Do Financially In 2024. "
@@squeaky_honda thank you 💪🏼🤌🏼
Really didn’t know about the partial transfer to a SIPP for lower fees
My dad invested in a legal and general pension for most of his life. He's nearly at retired age and tells me every time how much of a mistake it was. It's worth next to nothing compared to what he put in.
I'm following the advice you often give. Splitting up the risk across lots of areas.
Yep. Uncertainty. At least 20 years ago I took the view that there wont be a state pension by the time I get there. Coupled with numerous company pensions from changing jobs with silly little pots. Yeah I can combine etc. But yes, pots under my own control I think is the way to go.
Damien, have heard of the pension trust TPT?
I never quite understood pensions so stuck with investing I did understand 🙃
A pension plan is, in essence, just a set of tax-related rules 'wrapped' around an investment - often the same type of investment as you could hod in an ISA or a General Investment Account.
Tax efficiency. Just pay max matching with employer contributions until you hit the higher tax rates. Then try to invest more of the higher tax pay into the pension.
Would love to know what you think a low/ fair fee on a pension is. Thanks
Smart pension was charging a flat fee of £39 per month to invest it in their fund. Crazy when you calculate this over longer terms, My work chose this as its one where the employees pick up the cost, my SIPP is about £13 for exactly the same service. From what I have read, your employer, doesn’t have to give you a fair or reasonable deal in terms of provider, it just has to provide you with a pension regardless of good value. so technically if I want to move it away from them, I believe My Work will see it as an opt out of this scheme, so I would lose their contribution. Still looking into it though.
That’s ok if your have over 100k, mine is .4 and cheaper end of market. I had .75 and .35 before to.
My work based pension is with the Peoples Pension, there is an annual charge of £4.50, then a management charge of 0.5%. They have a rebate system depending on the size of your pot, pots over £25,000 get 0.25% of your management charge back and pots over £50,000 get 0.3% back. It seems a bit more reasonable from what i see the other providers charging.
Damien i only disvovered your channel in the last couple of weeks and its great 👍 i have the option of an avc over and above the workplace pension but being in 30s i feel despite its benefits im better not availing of it to try and save now and pay off mortgage earlier. Then if i do that in say 15 years then go all in for avc. Is that sensible or very misguided?
Those fees add up over time.
Would you do a video on legal and general funds? I can't find anything about them and it would be nice to get some views on the best performing funds. Thanks
Quite annoyed that the default auto-enrolment funds of Legal and General perform so badly. Mine was down 10% on the total contributed. After your last video, I switched the allocations to something more like a global index tracker and thankfully it's now at least back in the green.
The L and G individual funds are excellent if you puck and choose. I've got Global 100 , S and P and Tech. All doing well.
after watching one of your videos, i did indeed notice that i had been put on a default retirement pension plan on Nest. I have changed mine to a higher risk plan to see how it goes. im only 46 so have plenty of time before retirement..
Hey @damientalksmoney looking to move my Scottish widow pension, which of your vids breaks down the best pensions?
Hi Damien, fantastic video as always. Can I ask if you have any information on university pensions? I am with SAUL (Superannuation Arrangements of the University of London). Just wondered if I was also able to speak with them about their investment strategy, and generally have more input into my pension.
Thanks!
From the cradle to the grave, we are robbed by taxation 😢
In Australia private pensions are mandatory to reduce reliance on the state.
I didn't know you had a poll on pension. Would've voted!
Thank you Damien
You don't need to thank me, Thank you for watching!
@@DamienTalksMoney someone's feeling perky today 😂
@@imbarmstrongfull of beans had a decent haircut (which is not in this video before you say something)
the only pension i have that i feel secure about and have control of is yellow and shiney
My dad worked for a major UK company in the 70s who say they can find a record of him working there but "lost" all the details of his pension. It put me off a bit so that I would now prefer my own private pension. Probably won't get a state pension in my lifetime.
What I'm not clear with is how much of my tax goes into the government pension scheme? I'm in the UK.
I was one of those people for many years. Much of that came from a lack of understanding and education on investing and importantly,the value of compound interest. Schools should provide better financial education. This is not financial advice. But providing young minds with the tools to navigate the world of financial understanding.
Yes. Everyone should have a basic understanding of APR and AER, money coming in and money going out. I couldn't calculate compound interest, I'd use a calculator, but I at least know what it is and why it's either a good or a bad thing depending on which way the money is moving.
Thank you
You can normally only leave half of your pension to your partner, the government takes the rest. That's not on in my book. My dad didn't even get that, he only got 10 percent of my mum's pension. She worked for the local council, but he's not even allowed 50 percent. It was a waste of money, paying into it for them. Most pensions are crap tho anyway. They say you'll have a million pounds in your pension, but a million pounds when I'm old will be like 5 years money.
That's a defined benefit pension... there was nothing stopping him contributing to his own personal pension. The government hasn't taken anything... the scheme only paid your dad till he died. They're not gonna pay your mom the full whack as well, that's just silly 🤣🤣
@@chrishardy34731, He did contribute to his own pension, what makes you think he didn't?
2, My dad is still alive, he hasn't died.
3, Plenty of people get half of their partners pension, if they die. Getting only half of what your partner paid in, is a joke. You should get all of it.
Excellent work
Some SIPP pensions have a protected age at which you can withdraw your pension. Mine stays at 55. Going to try to find one for my 6 year old and see if they offer something similar. Its worth checking your private pension terms and conditions.
I got my 7 yo a child SIPP with BestInvest. It does the job and has access to the World Tracker funds like HSBCs All World Tracker
Yes , you can invest for your child. We've saved using the Family Allowance since they were born. It's going up to age 57 soon.
Do you mean it is protected at 55 even if state pension rises? So it’ll no longer track it but minus 10? Can you mention any of the providers / schemes which offer this? Haven’t heard of it but very interested
@@XadJack yeah so the withdrawal age is protected now despite the state pension age being raised to 67 and then 68, I guess due to the time I took it out, which was only a few years ago but before they announced the raising of the minimum ages, I think. Essentially it's yet another reason to be absolutely sure that your existing pension doesn't have benefits that you will lose if you transfer out completely.
@@johnristheanswer I've set one up already, I just wonder if there is one that would allow them to take out a pension at an age before her 60s. Which given the current trajectory I seriously doubt. The fact it's a junior sipp makes me think that any transition to an adult sipp would be subject to the current rules when they hit 18, Vs mine where my sipp allows me to begin withdrawal at 55. Also, because of the future pension changes, this sipp will be the only one that will give me that flexibility unless rules change in the future.
And they likely won't change for our benefit .
My first job had no pension, so with nothing to guide I picked a pension with an ultra-respectable company.
Their name was Equitable Life. After that shambles I took out a SIPP. Pensions aren’t a scam but in some cases they’re close to one.
I'm fortunate enough to work on the railways where you can get a Final Salary Defined Benefit scheme. My biggest worry is the moving pension age will make it almost pointless putting money into a SIPP. The majority of my investments are held within an isa and thats likely where my allocation will lye for at least a decade.
I am fortunate that I've worked long enough, and am old enough, that I will get the full state pension at age 67. I was also auto-enrolled into the workplace pension which I paid into until I stopped working in 2022. 18 months later, that pension pot had not grown at all, so I've moved it to a company that actively manages it, and I'm seeing the benefits already. Yes, I pay a fee, but I'm ok with that. I started my first shares ISA last year, it has 5 divident stocks. I will add again in the new tax year. I also have a general investing account. That's about all I can do for my future. Hope it's enough.
Good for you for monitoring and taking action if you are not happy.
But just need to temper that with saying 18 months really isn't long enough for returns, and it is likely your improved returns are actually more reflecting the market than the fact they are now actively managed.
Hi Damien, I’m with legal and general through my work. I couldn’t find it on your spreadsheet. Any help please?
Depends on the pension. Like so many other things.
If we force providers to have too low fees we may end up harming new competition from starting. Not only does NEST have terrible fees they are the slowest and most obstructive common pension provider when customers want to transfer out, there are more steps than most other providers
I recently noticed that, i was hoping to transfer out, but have to stop paying in, before they will even consider a transfer, and then some.
I got no choice, as im part time with a Agency ( Manpower), and thats their choice for workers pension.
@@garyten13 You have to hope that the vague plans for Pension Provider Choice are made concrete at some point, this will mean that the employee can choose their provider, and their employer will make the contributions direct to that provider rather than their default provider. Most employers use standard third party salary management systems anyway that must already support many providers.
I had two Prudential advisors come and visit me back in the 1980's just after I started full time work. Two different salesmen from the Pru visited me a few weeks later and showed me a document that I had supposedly signed. It was a forged signature that looked nothing like my own signature. They made a hasty retreat when I pointed out I had not signed that document and strangely, I was never visited by the Pru ever again. I would love to know what happened there. My biggest concern with the pensions market though is that as we live longer as a population, the returns need to be even greater than any stock market could produce. Plus lower birth rate leading to fewer earners to help prop up these pension funds doesn't paint a promising long term view. So, ignoring all the tax benefits etc, and just looking at the concept of pensions (imagine they didn't exist until someone suggested them today) and I just don't see how they can work long term. More money flowing out than coming in is a formula for another political scandal at some point in the future. Crash, bang wallop?
well yeah that's WHY it's a ponzi
These pension providers also have massive lobbying departments
yep plutocracy
The biggest con in workplace pensions is the lower & upper earnings limit, surely the lower earnings limit was so low earners didn't have to put money they couldn't afford into a pension & not so my company didn't have to put in for the first £188 a week of my earnings. there is no reason for the upper earnings limit as far as I can see apart from being a cop out for employers to save themselves money
Great video mate!! The moving goalposts of SIPPs suck!! So am investing in all 3 SIPPs/ISA/GIAs.
Definitely the best way in my opinion.
@@DamienTalksMoney Talk about young people Going Galt and reducing their income on purpose and also whether we have options to invest in mining companies or gold via pensions in the UK because I can't find anything.
Great metaphors
The DNS is broken on your pension sheet sign up. The "track" site isn't found.
Another top video. 👌
We need you on GB news doing a financial education slot all the topics you cover with Martin Lewis as lead perhaps and people featured like Nisha..you are doing great work!!