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I wonder with the new pension lump sum drawdown rules..Fiasco?


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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 :)

 

That was kind of my point - but I do feel the risk to the reckless is great. But I suppose if they've taken the trouble to pay into a pension, they are not the sort to take risks?

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That was kind of my point - but I do feel the risk to the reckless is great. But I suppose if they've taken the trouble to pay into a pension, they are not the sort to take risks?

 

I think that's my take on it also..

 

---------- Post added 10-03-2015 at 20:13 ----------

 

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.

 

Can't be much worse than buying an annuity..give the insurance company your lump sum and get spending money back..

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I think that's my take on it also..

 

---------- Post added 10-03-2015 at 20:13 ----------

 

 

Can't be much worse than buying an annuity..give the insurance company your lump sum and get spending money back..

 

I bet it can be much worse....You wait and see....The horror stories won't be far off....People can get through lump sums of money like it's going out of fashion.

 

But the government won't be too worried. They'll just be rubbing their hands with the amount of tax they rake in, off the lump sum, and from tax revenues, one way or another as it's spent.

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I bet it can be much worse....You wait and see....The horror stories won't be far off....People can get through lump sums of money like it's going out of fashion.

 

But the government won't be too worried. They'll just be rubbing their hands with the amount of tax they rake in, off the lump sum, and from tax revenues, one way or another as it's spent.

 

Would you prefer it to go to the bankers' bonus' instead.. 'cos a pound to a pinch of snuff that's where the lump sums go when you buy an annuity.. :)

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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.

 

They were discussing people using their pension pot to buy housing, and that it might give a further boost to house prices.

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It is a good development, it allows people to invest money where they want it. The old system was laborious, open to abuse by the pension funds (putting in all sorts of charges to cream money off the top) and inflexible.

 

Have a bit of faith in people, sure, some will muck it up massively, but others should see a nice boost to their pensions if they make the right decisions.

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Would you prefer it to go to the bankers' bonus' instead.. 'cos a pound to a pinch of snuff that's where the lump sums go when you buy an annuity.. :)

 

Nooooo...Obviously not....and you're right, I'm sure that's where most of it ends up.

 

All I'm saying, is that 'people' can get carried away with money and fairly easily conned out of it by unscrupulous 'sharks'.

 

You hear of things even now, before it is rolled out, about our elderly population being on 'suckers' lists, and being conned out of their life savings...etc

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Nooooo...Obviously not....and you're right, I'm sure that's where most of it ends up.

 

All I'm saying, is that 'people' can get carried away with money and fairly easily conned out of it by unscrupulous 'sharks'.

 

You hear of things even now, before it is rolled out, about our elderly population being on 'suckers' lists, and being conned out of their life savings...etc

 

It's a fair comment but I'd sooner people be given the chance to have their own money than for the insurance companies to have it..

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It's a fair comment but I'd sooner people be given the chance to have their own money than for the insurance companies to have it..

 

I just hope there is some kind of easily obtainable advice clinics set up where people can go for impartial objective advice. But even that's fought with the possibility of abuse.

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