Panorama on Pensions
- Thread starter Bronte
- Start date
I think that the last guy that was on last had a self-employed pension (?) and that main reasons cited for the 'shortfall' in his pension fund were high charges and investment choices ie the funds he was invested in were not in tandem with his risk profile.
I don't think that they really answered the question that the presenter asked and it was hard to make a call on whether he would have been better off as they did not say how much he had paid in.
I do think that the policy holder had an inflated expectation as to what he thought he would get in the form of pension. This may have been because of the advice he received or the 'quotes' he was given when he put the plan in place.
There really wasn't enough information to go on.
One of the pension 'experts' that was on suggested he invest in an index tracking bond fund and the other made the point of the tax efficiency of pensions.
But, yes, the programme was 'designed' to frighten the bejaysus out of anyone with a pension. This may make policyholders question what they have, and that in itself is a good thing.
I don't think that they really answered the question that the presenter asked and it was hard to make a call on whether he would have been better off as they did not say how much he had paid in.
I do think that the policy holder had an inflated expectation as to what he thought he would get in the form of pension. This may have been because of the advice he received or the 'quotes' he was given when he put the plan in place.
There really wasn't enough information to go on.
One of the pension 'experts' that was on suggested he invest in an index tracking bond fund and the other made the point of the tax efficiency of pensions.
But, yes, the programme was 'designed' to frighten the bejaysus out of anyone with a pension. This may make policyholders question what they have, and that in itself is a good thing.
D
Dunphy
Guest
Nobody questioned Pension Schemes for years and everybody just thought great I have a pension, however now with the markets crashing and dare I say poor management of Scheme Investments leading to plans being massively insolvent, people are now beginning to question why give 5%-10% of my salary to a Scheme where there is no legal obligation on the employer to make it solvent.
I would guess that for the majority of DB plans the current active members are contributing to pay existing pensioners, with reducing workforces it is very hard to see how there will be anything left in the pot for Johnny 25yr old when he retires in 40 years (unless his employer is willing to contribute at crazy rates to maintain solvency). Don't get me started on DC plans, I would rather take my chances with buying 100 lottery tickets a month.
The Pensions industry in Ireland is a a disgrace, we have one or two big administrators who act as trustees and investment consultants (Independence???) combined with a couple of financial institutions offering the same products. Can anybody tell me how it is allowed for companies to be trustees, administrators and consultants of the same plan? where is the independence? can we really expect them to do what is best for the plan members even if it means losing one aspect of the Schemes business?
Sorry for the rant!
I would guess that for the majority of DB plans the current active members are contributing to pay existing pensioners, with reducing workforces it is very hard to see how there will be anything left in the pot for Johnny 25yr old when he retires in 40 years (unless his employer is willing to contribute at crazy rates to maintain solvency). Don't get me started on DC plans, I would rather take my chances with buying 100 lottery tickets a month.
The Pensions industry in Ireland is a a disgrace, we have one or two big administrators who act as trustees and investment consultants (Independence???) combined with a couple of financial institutions offering the same products. Can anybody tell me how it is allowed for companies to be trustees, administrators and consultants of the same plan? where is the independence? can we really expect them to do what is best for the plan members even if it means losing one aspect of the Schemes business?
Sorry for the rant!