NON SPECIFIC GENERAL POINTS TO YOU YOUNG CHAPS
I will be 65 next week and I have been retired for the last 5 years from the airline industry. I have a number of pension schemes that now give me a comfortable retirement. I started with the RAF scheme at age 21, and 4 pension schemes later I reckon to draw on them until (statistically) age 84. So a few uninformed saloon bar comments about pensions..
The amount of money I lost on commission and management fees, for the 2 ‘private’ schemes, bought between the RAF and joining a company scheme, has been a scandal.
The value of the houses I have bought, have increased much more than any of the pension schemes. I would, I suspect, have been better of paying mortgages (for a property empire) then paying into pensions. The investment would also still be part of my estate when I die
Why would anyone commit to a financial ‘contract’ that lasts 63 years (age 21 to age 84) given the amount of uncertainty that government legislation has the potential to cause. Having just bought a couple of annuities along comes George last week, and changes the law again. Never mind advance corporation tax, life time limits, and so on.
All my pension pots are held by 3rd parties, either the government, insurance companies, or my ex employer, (who incidentally continually tries to water down the benefits accrued.) If I die tomorrow a large amount of what is in effect my money disappears into the proverbial black hole. Add that to a financial services industry that has become a byword for scandal over the last 20 years and you do wonder?
And to add insult to injury, when I get my basic state pension next week, I have been told by the EQUINITY that the £400 per month military pension I have received since age 60 is now reduced to £200 to make up for the GMP bit of the state pension. You could not make it up.
I am reminded of a head line in Private Eye some years ago.
‘pensions worthless as stock market collapse heralds house price disaster – time to end it all now or drink more!’