UK Pension Deficit..... How safe is your Pension???
May 8th 2014, 9:48 am
#1
BE Vendor - Finance Specialist
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Joined: Apr 2014
Posts: 48
UK Pension Deficit..... How safe is your Pension???
I have attached a link which is quite disturbing, if you are not speaking with someone about the options available to you with regards to your UK Pension, you should do now; http://www.pensions-expert.com/DB-De...ration?ct=true
May 11th 2014, 10:03 am
#2
Senior Moment
Joined: Jan 2006
Location: On the edge
Posts: 20,462
Re: UK Pension Deficit..... How safe is your Pension???
How safe is my pension????
Let me get this right (and please don't tell me annuities aren't for everyone).
You keep healthy all your life, don't drink or smoke much and the pension providers like that because you have a healthy lifestyle
You eventually go to buy an annuity with your pension pot. You find you get a better rate from the annuity providers if you smoke 100 fags a day and get through a bottle of whisky a day because they suddenly don't like healthy lifestyles, they would prefer it if you drank yourself to death in a very short period.
So you take out a no guarantee annuity begrudgingly to get the best rate and unfortunately you peg it a week later. You lose all of your pension pot to your annuity provider who is rubbing his hands in glee and your family get naff all. You could of course take out a 5 year guaranteed one and then peg it after 5 years and one day. Almost the same result .... but you did manage to get a small amount of your lifetime investment back.
Is my pension at risk? To damn right it is!
Let me get this right (and please don't tell me annuities aren't for everyone).
You keep healthy all your life, don't drink or smoke much and the pension providers like that because you have a healthy lifestyle
You eventually go to buy an annuity with your pension pot. You find you get a better rate from the annuity providers if you smoke 100 fags a day and get through a bottle of whisky a day because they suddenly don't like healthy lifestyles, they would prefer it if you drank yourself to death in a very short period.
So you take out a no guarantee annuity begrudgingly to get the best rate and unfortunately you peg it a week later. You lose all of your pension pot to your annuity provider who is rubbing his hands in glee and your family get naff all. You could of course take out a 5 year guaranteed one and then peg it after 5 years and one day. Almost the same result .... but you did manage to get a small amount of your lifetime investment back.
Is my pension at risk? To damn right it is!
May 20th 2014, 8:09 am
#3
BE Vendor - Finance Specialist
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Joined: Apr 2014
Posts: 48
Re: UK Pension Deficit..... How safe is your Pension???
Good Morning Mitzyboy, After reading your comments on another part of this website, I would like to apologize for not replying to your post. I read it more as a statement than a question...
You have a few options available to you, depending where you intend to retire. Annuity is not the only option! And quite frankly in my eyes why would anyone take one. The UK have recently changed the laws on Annuities in this years budget; https://www.gov.uk/government/news/b...vers-announced.
Apologies for the lack of response previously.
You have a few options available to you, depending where you intend to retire. Annuity is not the only option! And quite frankly in my eyes why would anyone take one. The UK have recently changed the laws on Annuities in this years budget; https://www.gov.uk/government/news/b...vers-announced.
Apologies for the lack of response previously.
May 20th 2014, 8:11 am
#4
Somewhere
Joined: Oct 2003
Location: Below
Posts: 35,994
Re: UK Pension Deficit..... How safe is your Pension???
Without my having to wade through piles of online literature, what are the alternatives to UK annuities.
May 20th 2014, 12:16 pm
#5
BE Vendor - Finance Specialist
Thread Starter
Joined: Apr 2014
Posts: 48
Re: UK Pension Deficit..... How safe is your Pension???
Hi Bevs,
The alternative option to an Annuity is - Pension Drawdown. This you are able to do through various methods, your existing personal pension now allows this as of March 2014 Budget review, also you are able to transfer your pension money into a SiPP (Self Invested Personal Pension) or QROPs (Qualifying Recognized Overseas Pension scheme).
The alternative option to an Annuity is - Pension Drawdown. This you are able to do through various methods, your existing personal pension now allows this as of March 2014 Budget review, also you are able to transfer your pension money into a SiPP (Self Invested Personal Pension) or QROPs (Qualifying Recognized Overseas Pension scheme).
