Originally Posted by
Melchett01
Your pension maybe protected under the Scheme, but only for as long as HMG choose to honour it. As has been said, our pensions are a promise. And hands up who’s been on a promise before only to be disappointed in the end?! (And I’m not just talking about finding out those stockings are actually tights!)
Reading the papers ahead of the budget made me think just how much political risk there is attached to our pensions. There are so many folk out there that utterly resent public sector pensions that the pressure to axe them or at best prune them back massively to the same poor pensions the private sector get is horrific. I’m not going to rehash the arguments about the rights and wrongs, but there is huge risk that we won’t actually get what has been promised. Not necessarily through scrapping them outright, but they could easily change the tax arrangements so that what looked like a comfy pension is suddenly halved by doubling the multiplier for tax purposes. And if Corbyn gets in, we’re doubly screwed being ‘rich’ ie having worked in a half decent job!
Combined with the risk to the State Pension, our eggs really are in one basket. As well as diversifying into ISAs and other areas, it almost makes one consider jumping ship to bank what has already been earned.
I am sure that I have read somewhere about the differences between AFPS 75 and the others.
My understanding is AFPS 75 is fully protected. The others did not have the same level of protection due to the legal way they were written.
Someone will be along to correct me?