Pensions

[Glosphil]

I recently received my yearly pension statement from Scottish Widows. The attached letter was headed "WHAT A DIFFERENCE A YEAR MAKES". Indeed it does, a 13% loss! In fact between 16th and 22nd September the fund lost 2½% in 6 days. This is a managed fund for which I pay a management fee. Mismanaged more like it. No doubt SW will state, "funds can go down as well as up" and "if it wasn't for the skill of the fund managers the loss would have been greater".
_______________________

Now that the government is handing out money to the banks involved in the crisis perhaps they could also help the victims. Stopping taxing pension funds would be a good start. The govt. could also make the tax relief on payments into pension funds more equible.

Currently for every £80 a 20% tax payer 'pays' into a pension fund the goverment pay £20, so a 25% increase. However for a 40% tax payer a £60 payment has £40 added, so a 66.7% increase.

Perhaps everyone should get 30% tax relief on pension payments so that a £70 payment is increased by £30, so a 43% increase for everyone.

I now await a flaming from the better-off posters on PistonHeads.

[Maxf]

I sort of agree, the Pension relief does seem to benefit those who perhaps need it less (or more realistically, benefit the poorer less) - although maybe we should all pay 30% tax (or whatever the flat rate would equate to) instead of 22% and 40%?

[fido]

To the OP, well -13% is better than my pension fund. I assume you have allocated most of your fund to UK Equities or Global Equities? Well you do get a choice on how to allocate your funds .. clearly shares can go up or down.

[Olf]

I'd ring them up and get an update. That 13% was lost before the st storm really started.

[Simpo Two]

Wait until your next statement - it should be down another 40%.

If pensions are suppose to be 'low risk' WTF are they doing in equities? I'd have done much better just to put the money in a bloody building society.

Feel sorry for the people who were going to retire this week and now can't, because the clever-clever monkeys in London who 'manage' everything fked up.

[V8mate]

Glosphil said:

Currently for every £80 a 20% tax payer 'pays' into a pension fund the goverment pay £20, so a 25% increase. However for a 40% tax payer a £60 payment has £40 added, so a 66.7% increase.

You're deluded.
The Government doesn't pay anything. You do. From your taxes.

These payments are no different to unemployment benefits for workshy chavs; it's just a redistribution of wealth. All you're asking for is for the money-go-round to swill about a little differently.

The sooner we stop having our income stolen and given to others without our permission the better.

Edited by V8mate on Monday 13th October 11:23

[Mr Whippy]

fido said:

To the OP, well -13% is better than my pension fund. I assume you have allocated most of your fund to UK Equities or Global Equities? Well you do get a choice on how to allocate your funds .. clearly shares can go up or down.

You have to 'write a letter' to change where they are allocated though.

I specifically, in person, asked their agent last time they visited to change mine to their 'safe' end of the scale... being lazy I didn't write the letter. How crap is that? When they set the whole thing up I could tell them the risk I'd like to take (riskiest), but when I want to make it safe I need a letter.

BUT, Scottish Widows are pretty damn good generally, and I only had a small amount in there, so it's not a big problem. I do feel for those close to retirement though, the last five years can make a huge difference but now it's gone the other way by 5 years worth of growth

Dave

Edited by Mr Whippy on Monday 13th October 11:27

[Glosphil]

Olf said:

I'd ring them up and get an update. That 13% was lost before the st storm really started.

That is the final loss - all my pension funds now converted to 'cash' funds as I intend to retire soon.
________________

In reply to the comment that I can choose the type of investment into which my pension funds are placed. I am not a financial expert, the fund managers claim to be. If funds are making a loss why don't they switch my pension funds or at least contact me and suggest I may want to consider changes? They crow quickly enough in the good times. I need good fund management in the bad times more than in the good times.

[Glosphil]

V8mate said:

Glosphil said:

Currently for every £80 a 20% tax payer 'pays' into a pension fund the goverment pay £20, so a 25% increase. However for a 40% tax payer a £60 payment has £40 added, so a 66.7% increase.

You're deluded.
The Government doesn't pay anything. You do. From your taxes.

These payments are no different to unemployment benefits for workshy chavs; it's just a redistribution of wealth. All you're asking for is for the money-go-round to swill about a little differently.

The sooner we stop having our income stolen and given to others without our permission the better.

Edited by V8mate on Monday 13th October 11:23

You are of course correct. Bad chose of words on my part. The Govt. don't 'pay' they just don't collect the tax due and allow it to by paid into the pension fund instead.

[Scraggles]

got the same letter, think will have to save some cash instead, high interest savings account cant loose as much as my pension is likely to have lost...

[V8mate]

Glosphil said:

V8mate said:

Glosphil said:

Currently for every £80 a 20% tax payer 'pays' into a pension fund the goverment pay £20, so a 25% increase. However for a 40% tax payer a £60 payment has £40 added, so a 66.7% increase.

You're deluded.
The Government doesn't pay anything. You do. From your taxes.

These payments are no different to unemployment benefits for workshy chavs; it's just a redistribution of wealth. All you're asking for is for the money-go-round to swill about a little differently.

The sooner we stop having our income stolen and given to others without our permission the better.

Edited by V8mate on Monday 13th October 11:23

You are of course correct. Bad chose of words on my part. The Govt. don't 'pay' they just don't collect the tax due and allow it to by paid into the pension fund instead.

OK - so now ask yourself - why do they collect tax only to give it back? Wouldn't you prefer to just see the same figure at the bottom of your payslip as at the top?

[Glosphil]

Scraggles said:

got the same letter, think will have to save some cash instead, high interest savings account cant loose as much as my pension is likely to have lost...

Since 2005 my cash ISAs have risen more than the latest state of my pension funds. I have other pension funds that have lost more than Scttish Widows. Glad my wife & I put the maximum amount of money possible into cash ISAs that would otherwise probably have gone into one of my pension funds.