Pensions, Annuities & Retirement Planning

A question about : Opt out of SERPS/S2P?

I am a 25 year old guys and I've just decided its time to start a pension. A friend has mentioned that they have opted out of SERPS/S2P. Does anybody know how this works and whether it is a good idea for someone my age?

Thanks in advance.

webmister22

A question about : Transfer into final salary pension

Hi.

My employer offers a final salary pension scheme, which I have been a member of for the past 2 years since starting my job here. I now qualify to be able to transfer rights from my other pensions into the final salary scheme - I have two money purhcase schemes from previous employers, currently valued at less than Ј9000. I am under 30 and do not envisage remaining with my current employer for more than another 5 years.

I have asked the pensions administrators for a quote, but have two questions:

A question about : Directors raided the final salary pension. Help!

Hi,

In the golden years of the stock market - like 5-6 years or so ago, directors at our company told employees the scheme - final salary - was overfunded by a cool Ј1m.

what did they do?

They withdrew this amount from the scheme despite employee protests.

They closed the final salary scheme and introduced a money purchase one.

Now, of course, the damned final salary scheme is underfunded - and they are blaming the fall on the stock market.

A question about : Security of Company of Pension Schemes

I have recently - 3 months ago - taken an voluntary early retirement pension. Simple question [I used to think!]. With all the talk of pension fund [fiunding] problems, is my company pension TOTALLY secure, now being in receipt of it, irrespective of the state of the stock market, or company? Could it ever be removed or reduced?
Mike

A question about : Pension

When I started my apprenticeship in 1978 and we were eventually allowed on the shop floor, the Superintendent talked to us about the benefits of working for such a nice organisation and the subsidised shop, sports club and social niceties. He also told us about the company pension scheme, where he advised us to 'NOT PUT A PENNY IN IT AS BY THE TIME YOUS REACH RETIREMENT AGE, THERE'LL NOUGHT LEFT IN THE POT'

I am afraid to say, what he said could be true!

Best answers:

• Depends on the company

A question about : AVC's

Got to start this by saying I'm fortunate.

Im in a final salary pension scheme.

3 years ago the company changed the "th's" from 60th's to 80th's.

I was in line to retire at 60 (still 25 years away), with 39/60th's, now it will leave a deficit, which I'm advised by our companies pension consultants, is equivilent to Ј5000 per annum at today's salary level.

A question about : Pensions and babies!

Hi Martin

A question about : Annuity. Value or not?

A 65 year old male can draw a single life annuity of Ј7391 for Ј100,000 and expect to live for another 16 years. At the current gilt yield of 5% the annuity provider would have Ј34,000 of the annuitants cash when he died (exluding costs of administration). This doen't seem like good value for the annuitant. Or am I missing something?

Cav