if you build up a pension fund of say-200, 000 the money is not yours it belongs to the pension fund.they will give you 50,000 as a 25 per cent lump sum .the rest of the money they keep giving you about 6 per cent as pension fund.they have the lump sum invested earning more than 6 per cent.so not only do you never eat into the fund but it actualy grows to be kept by them when you die.there is only one winner the pension company.the reason that they have existed for so long was that they preyed on peoples trust in believing the lies that were used when the policies were sold initialy
2007-03-24 06:37:12 · 5 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
There all the same they tell us to invest in a pension yet at the end we will get penalised.I have invested in ISA also have kept an endowment running.The way its going when they pay out think it will be better to hide the money & say I have spent it.Has you lose benifits & may end up getting taxed.I do not think it will be nice being a pensioner in this country.
2007-03-24 06:46:45 · answer #1 · answered by Ollie 7 · 1⤊ 2⤋
There are two types of pension plans, Defined Benefit and Defined Contribution. A defined benefit plan will tell you how much money you get every month for the rest of your life. A defined contribution plan simply tells you how much is put into the plan.
Pensions are good for your retirement plans, but I would suggestion that you also have a Roth IRA, some I-Bonds and some real estate.
2007-03-24 13:15:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I think you are talking about whole life insurance. I don't think much of it - if I want life insurance, I'll buy it, and if I want an investment vehicle, I'll fund it. Mixing and matching is not a good idea.
A pension is paid by a company for working for a number of years. You never put in any money toward it, just time working for the company.
2007-03-24 06:42:37 · answer #3 · answered by John T 6 · 0⤊ 1⤋
That is not a Pension fund as it traditionally is set up.
A pension fund pays you for the rest of your life a sum of money depending upon length of service, salary, and other factors.
2007-03-24 19:07:42 · answer #4 · answered by Brick 5 · 0⤊ 0⤋
You need to do some more research. I don't think I found one factual statement in your scenario.
Look up ERISA while you're doing research. Then come back when you know what you're talking about.
2007-03-24 06:56:03 · answer #5 · answered by Faye H 6 · 2⤊ 1⤋