Calis Beach and Fethiye Turkey Discussion Forum
General Topics => All things that have nothing to do with Turkey => Topic started by: stoop on October 20, 2010, 16:42:16 PM
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All Britons under the age of 57 on 6 April this year will have to wait until they're 66 before they get their pension.
Bummer!
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Actually for me it might not be a problem as I am already receiving the equivalent of my state pension through my ill health company pension. This reduces when I start to receive my state pension..... but will the company scheme stand for this extra year?
Confused a little but I'm sure they will let me know at some point.
It does affect my good lady though and many of our friends.
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This affects Fi and I....good job we were not relying on this for our old age. It means Fi's retirement age has changed twice and now she has to wait 11 years for her pension!!!!!
The way things are going, ie. looking at upping the retirement age to 70 and beyond, I will never get my pension!
So....can I have a refund now on what I have paid into it? I think I know what the answer to that will be!
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well with the UK default retirement age being lifted, we can all look forward to working much longer so that the government dont have to pay us any pension at all........
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Funny - as an adviser I was telling people about this years ago. It was obvious that the life expectancy was rising and there was going to be less people to pay NI contributions. Some took out pensions or avc's and some took out long term savings plans. I just hope they perform for them.
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Good news for me, nothing changes, except maybe a bigger pension, sometimes it's good to be old:D
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and the french go on strike on a rise from 60 to 62, I think the Greeks retire early as well.private pensions and Avc's etc preform well for the sales men and the companies who sold them. they / you lock you money away for years with promises of a return only to find that the promormance ain't there and the annuity rate has fallen, then you die and your poor wife or husband only gets half the money, who has trousered the other half?
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quote:
private pensions and Avc's etc preform well for the sales men and the companies who sold them. they / you lock you money away for years with promises of a return only to find that the promormance ain't there and the annuity rate has fallen, then you die and your poor wife or husband only gets half the money, who has trousered the other half?
So take that, stoop!
Couldn't agree more c1. Every year I get my latest pension forecast, and it's now a fraction of what it was three years ago, and yet they're still assuming 7% growth? Go figure - I certainly can't.
As with a lot of "Financial Services", the advisors and providers are in a win-win situation - their commissions and profits are taken out before the poor punter just gets to pick up any crumbs that are left over.
If I could, I'd take the whole lot out now and take my chances with the Turkish interest rates - at least if it all went belly-up, I've not supported "the city".
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What makes me cross is that on my pension forecast, it shows that I have now contributed enough Ni etc to qualify for my state pension. I am 47 so theoretically will now be contributing afor another 19 years before I can claim anything back.Humph!Who's getting my 19 years worth of contributions? Not me!!
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quote:
Originally posted by rpg9000
quote:
private pensions and Avc's etc preform well for the sales men and the companies who sold them. they / you lock you money away for years with promises of a return only to find that the promormance ain't there and the annuity rate has fallen, then you die and your poor wife or husband only gets half the money, who has trousered the other half?
So take that, stoop!
Couldn't agree more c1. Every year I get my latest pension forecast, and it's now a fraction of what it was three years ago, and yet they're still assuming 7% growth? Go figure - I certainly can't.
As with a lot of "Financial Services", the advisors and providers are in a win-win situation - their commissions and profits are taken out before the poor punter just gets to pick up any crumbs that are left over.
If I could, I'd take the whole lot out now and take my chances with the Turkish interest rates - at least if it all went belly-up, I've not supported "the city".
Fair points but you can't blame the insurance companies for the poor performance of the stock market and low interest rates can you?
I agree that some have performed awfully because they did not have enough assets to ride out the big falls in share prices that we have seen on numerous occasions over the last 15 years. The strong ones did and actually invested in more shares when the prices were lower.
As for the assumption of 7% growth - these are figures provided by the FSA and are not assumptions but a guide to what you might get back if they achieve this rate until you retire. The most likely reason why it is less than 3 years ago is due to the final bonuses being reduced due to poor performance in the stock market/property or whatever they invest your money into.
Personally, in today's climate, I would only invest in a pension or avc if I was a high rate tax payer or a none tax payer (you still get the tax relief).
As for being charged up front - years ago that was the case (and surprisingly they are the plans that have paid out the most due to the excellent returns they achieved in high inflation years) but now most good companies charge about 1% annual management charge (taken off each payment) and most good companies have their staff on basic salary plus bonuses if they hit their targets.
We are all in the same boat - wherever you invest today there is no way you will get the returns you could have got 10 or 15 years ago - and Turkey is a prime example - interest rates down from 17% to 9% in the last year or so.
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quote Stoop
"Fair points but you can't blame the insurance companies for the poor performance of the stock market and low interest rates can you"?
but you can blame them for misselling in an unregulated market for years and years until a responsible government put a stop to it
what a scam legitimised by the state!
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quote:
Originally posted by milorni
What makes me cross is that on my pension forecast, it shows that I have now contributed enough Ni etc to qualify for my state pension. I am 47 so theoretically will now be contributing afor another 19 years before I can claim anything back.Humph!Who's getting my 19 years worth of contributions? Not me!!
Double check this with your employer. If it is correct I am sure you can opt to stop paying NI. When I retired I was told I had paid the maximum NI and If I wanted I could stop NI deductions from my pension (but not income tax[:(!])This I did, so there is only tax deducted at source now.:D
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I am no economist, but I do find this topic quite interesting, one question I've always wanted to ask, and maybe some of you "financiers" could shed some light on is; Everyone goes on about lengthening life spans and extra amounts in pensions to pay out, but conversely what happens to the NI contributions of someone who unfortunately dies when they are 64 and never even collected state pension or even at <70 and only collected up to 5 years pension (and a lot do), where does all this unclaimed money go ? (back into the pot I guess) [?][?]
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where does all this unclaimed money go ? (back into the pot I guess)
Yes - and there still isn't enough. That's the whole problem with (state) pensions!
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I am in a final salary pension with my employers, they
match my payments every month. Are these 'safe' pensions?
Will the new retirement age affect this or is it relevant to state pensions only?
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Stoop-can't blame insurance companies for poor stock market preformance, well yes you can because they on their customers behalf have invested in companies which have poor management and have not in most cases curbed crazy bonus schemes ie banks, they have also failed to remove/use power to remove poor directors etc. the golden rule should be he "who has the gold makes the rules" insurance/ assurance companies have had to cosier relationship, with the poor and I do mean poorer pensioner taking the hit. if any other product that we buy failed so often we could get a full legal redress with slae of goods atc etc. rant over. :)
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From 6/4/2010 you only need 30 years for a full basic state pension but you cannot opt out of paying NI contributions when you have reached 30 years. You do however become exempt from paying NI if you are still working for an employer after state pension age. NI contributions are also used for contributory benefits such as Job Seekers Allowance and sickness benefits not just for the State Pension.At this rate I think we will all be working until we drop.
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Originally posted by Jenny1
I am in a final salary pension with my employers, they
match my payments every month. Are these 'safe' pensions?
Will the new retirement age affect this or is it relevant to state pensions only?
Lucky you! It's a rare employer that looks after its staff by providing a Final Salary Pension scheme - they are very expensive for them.
Like all financial investments the rules can change. Keeping up to speed with developments and advice through a reputable paper like the Saturday Guardian that has an easy to read section on Money can help you understand how to stay abreast of potential changes and threats to your investments, how to benefit and save money by taking advantage of new deals as well as how to claim compensation when you have been missold for example a mortgage, an endowmwent or even a pension.