MSE News: Pensions shake-up 'to help half a million by Christmas'

A question about : MSE News: Pensions shake-up 'to help half a million by Christmas'

About 500,000 people will save into a pension for the first time by Christmas due to auto-enrolment, the Government says...

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Pensions shake-up 'to help half a million by Christmas'

Best answers:

• I thought this 'idea' had been put back?
  When does it come into action for companies
• People are finding it hard to live in the now let alone worrying about the future, we struggle to pay a pension that we know will be less than was predicted when we took it out, the companies involved have screwed people by withdrawing with profits plans and moving them to a cheaper for them pension fund and so now we are going to be in the mire when we retire
• Meanwhile, annunity rates worsen further
  https://www.ft.com/cms/s/0/5e43ca96-f...#axzz271CYGWvm
• Thinking out loud, but if the government can introduce ISAs for children, why not for retirement?
  I.e. an investment account with tax benefits that prevent those paying in to them from withdrawing the funds until retirement?
  People could keep hold of their investments and draw them down/buy an annuity with them as they see fit, but they wouldn't be tempted to take the money early.
  Not convinced that the current choices of annuity or drawdown (dependant on GAD figures) suit many with smaller pension pots?
• The pension system is designed to dangle tax relief in front of you, but make it forever out of reach.
  They say you pay Ј80, and they put in Ј20, but Ј5 is swallowed by fees and commission every year, if you are lucky: could be Ј10. So only Ј95 is invested. Let's say Ј95 a year over 40 years grows into Ј9,500, and you can take Ј2,500 lump sum. The remaining Ј7,000 is given to you at Ј400 a year, so you will have to live 18 years to get it. If you are not lucky, the Ј400 is potentially subject to tax.
  If you just kept the Ј80, invested it in an ISA, which has similar tax free properties, with Ј5 in fees, so Ј75 is invested. After 40 years, you have Ј7,500 , but it's all tax free, and you can do what you want with it.
  Forcing you down the pension route is just the government offloading a liability. It's nothing about helping you with your life choices.
  They don't want to pay to keep me in a home: I don't want to die in an old folk's home EITHER!
  I would like a cremation by being hurled into the sun.
  Please develop a linear accelerator for shooting payload into space. Ideally, I would like my coffin/capsule go above the ecliptic plane, do a decaying spiral orbit, then plunge into the sun.
  If there's not enough money for the solar cremation, at least put my ashes in a pressurised bag, which can be expelled from a space vehicle, and scatter me into outer space.
• What makes all the difference is if you can get a half-decent pension scheme from your employer.
  My employer pays all the fees, and they also make a contribution to my pension pot.
  So even if the scheme isn't very good, my money is instantly doubled the moment I make each payment (because of my employer's contribution).
• 7% growth? Stilll wearing the colourful braces from the 80s?
  If the government can guarantee 7% growth, try and stop me from putting money in, and I don't even need some employer chipping in.
  I was fanatic about using my maximum pension allowance when I started my working life. Given 6% or 9% I would always choose 9% of my salary, and then paid into AVC (Additional Voluntary Contribution) to soak up the rest of the allowance.
  If I had 5% growth I would be laughing.
  Let us say there is roughly Ј12k of employer's money in my pension pots, and Ј8k of mine. 12 years later, there's probably Ј22k in there, and I cannot touch any of it. It will be a grudge match just to get my own Ј8k back. Retire at 67, live to 73, and then the annuity provider gets the "employer's contribution".
  I listened to Thatcher and saved into pensions and lost. Won't be fooled again.
• Personally ISA it ANY pension per se will damage the amount of state pension, it will be paid but very reduced for those who paid in private.
• What happens if you already have a private pension that you pay into each month.
  Does the money from the employer then go into this pot or is another scheme started for the whole of the workforce?
• I had a colleague, who got talked into a personal pension.
  Got made redundant, new job company had a FINAL SALARY scheme. The choice was something like:
  A. Join the company scheme, he pays 6%, the company pays 9%, plus the tax rebate.
  B. He carries on with his personal pension, the company will not contribute.
  He chose B!!!!???
  I did not understand it, but he said he had thought it through, and it was more portable in case he left the company.
  TWENTY years later, STILL with the same company, he said he made a BIG mistake.
  He has a BSc in Mathematics. Some people are beyond help when it comes to money.