For the last year since graduating, I have been paying 6% and my employer 12.8 into a final salary pension. I know I can transfer this to another scheme if I move job, as long as it is a final salary scheme, but would I be better investing my money in the stock market so I have more control, albeit exposed to more risk?

apple, all the stuff you are quoting is dated May 5th, even the programme was transmitted on the 9th, which you have mentioned that the announcement was expected, as they were speculating what would be in it.

All of this was BEFORE the announcement on the 14th of May as well the date the actual bill was published - on the May 12th, so that it could go forward for parliament approval. So no one knew any of the full details until the 12th.

Either way even if you only get 90% of the guarantee, thats a lot more than many will get because they have no guarantee of getting anything.

One of the scandals of the from the late 1980's was pension mis selling.

And it consisted purely in relation to anyone in a company pension (especially a final salary scheme) who was convinced to opt out the scheme. They were automatically compensated so they could go back into the scheme because by opting out, it was widely accepted, they were worse off.

Anyone care to comment on the pension situation now in the UK?



Wednesday, 4 April 2007, 11:09 GMT 12:09 UK

http://news.bbc.co.uk/1/hi/business/6525587.stm

Pensions 'not better than ISAs'

ISAs are more flexible than pensions
Millions of Britons could be better or equally well off investing in an Individual Savings Account (ISA) rather than a pension, a report has said.
The report from website Everyinvestor.co.uk goes against many experts' view that pensions are best because contributions enjoy tax relief.


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The arguement goews back and forth. But my problem is a little nearer to home.

My daughter has recently joined a company on a graduate scheme.

The pay and perks are pretty good, however this company only offers a money purchase pension scheme.

The company will pay a contribution of 6.6% of your salary, and you contibute 5.40% (min) towards the scheme. Tax relief makes this lower.

Ther are no guarantees as to what you will recieve when you eventually retire.

Which of course is the main problem. Do you hand your money over to the city gents and hope for the best? Or try for a different solution?

My own experience with "managed" funds is awfull...ie, a so called endowment, which cant even keep up with high street bank deposits. (RSA)


Any suggestions?