PeteMorris Posted March 10, 2015 Share Posted March 10, 2015 I'm not entirely sure when it's going to happen, but it's not far off. The government are changing the rules to do with pensions, whereby you won't have to buy an annuity, but you can if you want, have the lot as a cash lump sum. I wonder how many horror stories, about people being 'ripped off'...Cheated...Ill advised...people blowing it in next to no time....etc we will be hearing. Seems to me, to be a recipe for disaster. Link to comment Share on other sites More sharing options...
geared Posted March 10, 2015 Share Posted March 10, 2015 I'm sure if you read the right paper you'll find a few stories of some old fool who's given the lot to a Nigerian businessman to process lottery winnings or somesuch. You would hope people will be careful with their life savings, especially the pension which they could have been paying into for 30-40 years. Still, you know how the public can be. Link to comment Share on other sites More sharing options...
PeteMorris Posted March 10, 2015 Author Share Posted March 10, 2015 I'm sure if you read the right paper you'll find a few stories of some old fool who's given the lot to a Nigerian businessman to process lottery winnings or somesuch. You would hope people will be careful with their life savings, especially the pension which they could have been paying into for 30-40 years. Still, you know how the public can be. The plain fact is...If it's possible to happen, then it will.... I can even foresee a similar thing to the PPI debacle, where people are mis-advised and ensuing court cases, and compensation claimed for the poor advice. It just makes me cringe to think about the possibilities Link to comment Share on other sites More sharing options...
geared Posted March 10, 2015 Share Posted March 10, 2015 Yea, but it's quite good to see it is so obviously going to happen. Can make sure Friends/Relatives are well advised to behave themselves. Even level-headed people can get silly when big sums of money are waved at them. Link to comment Share on other sites More sharing options...
PeteMorris Posted March 10, 2015 Author Share Posted March 10, 2015 Yea, but it's quite good to see it is so obviously going to happen. Can make sure Friends/Relatives are well advised to behave themselves. Even level-headed people can get silly when big sums of money are waved at them. You're right...even the most level headed, intelligent people can get carried away...Money does strange things to people....Even within families.. Link to comment Share on other sites More sharing options...
RJRB Posted March 10, 2015 Share Posted March 10, 2015 I think it's completely foolhardy,and designed to apparently give freedom of choice to individuals,but to favour the exchequer with substantial additional taxable sums. The very wealthy who are not dependent on a pension will no doubt find the optimum way to release their pension pot,and perhaps those at the bottom end who will get a negligible private pension ,would opt for a one off spending spree. For the middle ground,I have always believed that Income is much more important than Capital.In fact when I retired I didn't take the 25% tax free lump sum but put this into my annuity. At least I know that we will have a liveable income for life. If we want a car,a holiday or whatever I will have to budget from my income. The "legitimate"financial institutions will be after this money,and of course the scammers. What happens when the reckless and feckless have spent the pot.they will have to fall back on benefits paid from taxation. The banks,Gordon Brown etc.have killed the principle of saving for your retirement and old age,and now we have this Chancellor presenting this under the guise of it being beneficial to the people who have the right to manage their own affairs. Rubbish.its all about greed and people need to be protected from themselves. Link to comment Share on other sites More sharing options...
Anna B Posted March 10, 2015 Share Posted March 10, 2015 Does anyone know what bona help and advice has, (or will be) put in place? Surely with large sums of money involved and some fairly unsophisticated people, safeguards should definitely be a prerequisite. Link to comment Share on other sites More sharing options...
RonJeremy Posted March 10, 2015 Share Posted March 10, 2015 At first sight it looks like a nightmare to me, not as bad as Brown raiding the pension funds whilst he was chancellor, but a recipe for disaster for some. I can't see why they've done it. The only saving grace is that it doesn't FORCE people to buy an annuity at an unfavourable time in the markets. Link to comment Share on other sites More sharing options...
stressconsul Posted March 10, 2015 Share Posted March 10, 2015 I can see a lot of not so well off people using their pension pot to help their kids onto the property ladder - a fine and selfless act - but might leave them poor in later life. Link to comment Share on other sites More sharing options...
truman Posted March 10, 2015 Share Posted March 10, 2015 At first sight it looks like a nightmare to me, not as bad as Brown raiding the pension funds whilst he was chancellor, but a recipe for disaster for some. I can't see why they've done it. The only saving grace is that it doesn't FORCE people to buy an annuity at an unfavourable time in the markets. Annuities are daylight robbery...If I had my pension pot I could make the same return as an annuity would give me and still have the capital should i need it..the only winners with annuities are the insurance companies.. in my opinion anyway Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now