I used an online pension calculator yesterday. I have a fund of 48K from 15 years of saving already, and save £100 per month into a private fund. I am 41, and will need to work until I am 70. In today's money, it says that I will get 6K per year (peanuts). I earn 33K now, to get a pension of 22K (which is as high as the calculator will go) I need to save £834 per month. How the hell can anyone afford that?
I know that hopefully my mortgage will have been paid by then, but to go from a 33K lifestyle to a 6K one is a big drop.
How crap is our pensions commision?
2006-09-21 08:55:41 · 8 answers · asked by spiegy2000 6 in Business & Finance ➔ Personal Finance
Very worrying! Since the chancellor decided to tax pension plans the situation has become very grave. I have had friends who paid into a pension plan for 29 years and have lost everything! I really do not understand how insurance companies and fund managers can not be prosecuted for fraud there have been so many people fleeced of thousands. Most of those who have lost money are just ordinary people who thought they were providing for their old age. Company pensions have been the worst losers. I would look for something more profitable to put your money into. What ever you do don't put any money into bonds they have a real sting in the tail! I know that I am still working in my sixties, I certainly can't afford to retire and what pension I do get they tax. They tell me it is unearned income but I seem to remember earning every penny of it! Good luck for the future and thanks for an interesting question.
2006-09-21 09:16:57 · answer #1 · answered by Grannygrump 3 · 1⤊ 0⤋
Don't forget that we have to help paying for the posh pension fund headquarters, their directors' big bonuses, and their share holders. Oh, read the small prints: pension funds don't guarantee to give you the sum promised. They have the rights to pay you less when they make a loss before you retire (never heard of funds paying MORE than they promised though).
2006-09-21 17:16:32 · answer #2 · answered by bertrand russell 1 · 0⤊ 0⤋
very scary people tell me it's better to invest in property to provide a pension.
2006-09-21 16:42:51 · answer #3 · answered by stevenandrewheath 1 · 0⤊ 0⤋
depends how early you start your pension,
earlier the better also
anyway, look on the bright side, you might die before retirement day
2006-09-21 15:58:06 · answer #4 · answered by Anonymous · 1⤊ 0⤋
I agree. We work our a*ses off working and saving then we work our a*ses off scrimping and scraping.
2006-09-21 16:07:25 · answer #5 · answered by Wendy M 3 · 0⤊ 0⤋
i agree it dosent seem fair
2006-09-21 15:56:56 · answer #6 · answered by ellevina 2 · 0⤊ 0⤋
its all very worrying
2006-09-21 16:04:02 · answer #7 · answered by Anonymous · 0⤊ 0⤋
very
2006-09-21 16:12:10 · answer #8 · answered by russellhamuk 3 · 0⤊ 0⤋