Another reason pensions suck

[DimPrawn]

Charges and fees cutting 50 per cent from British savers' pension pots - Telegraph

Charges:

A 25-year-old worker putting £200 a month into the HSBC World Selection Personal Pension for 40 years and receiving typical returns would be charged a total of £248,650, according to industry figures.

The worker would be left with only £248,453, according to the Financial Services Authority, meaning that just over half the pension pot would be absorbed by costs.

Legal and General’s Portfolio Pension would cost £209,000 in charges and deductions, while Scottish Widows’ Individual Personal Pension Plan would cost £160,000 of the £497,103 accumulated with a typically expected 7 per cent return.


Ripoff.

[AtW]

Factor in real inflation, the fact that you might not live till pension in the first place due to age of retirement changes, and the fact that in any case there won't be enough money in this ponzi scheme to pay off you in 40 years, so there is a guarantee that your pot will be raided in the interests of fairness.

It's no wonder people buy houses expecting them to be their pension.

[Fred Bloggs]

All the more reason to use HL or Alliance Trust savings then. Simples really.

[TimberWolf]

That's the mystery of how they can afford those big plush offices and directors bonuses solved then.

[Doggy Styles]

All the more reason to use HL or Alliance Trust savings then. Simples really.

Really? What are they then?

[Spacecadet]

The article seems to have it's 50% more and 50% less confused

[Doggy Styles]

The article seems to have it's 50% more and 50% less confused

Yes, pension holders lose 50% but then have to find 100% to make it up. That's inflation, it would never have happened under Labour.

[Shimano105]

Pension investment funds suck a monkey's nob.

But the pension wrapper is quite attractive. I am considering utilising one in some form of SIPP for one reason - it prevents the wife from spending it.

The real downsides to this are:

- losing the lot if I peg it (not that I'll care much when that happens)
- future legislative changes - pension pots are all too tempting for skint governments.

[AlfredJPruffock]

losing the lot if I peg it (not that I'll care much when that happens)

Should that be When rather than If you peg it ?

Over the years Ive been very scathing abour pensions and events have proven my view was correct - it is a scam.

[Shimano105]

Not me, death is for losers innit?

Plan B could be to chop the wife's fingers off though.