Iallowing pensioners to manage their own pot will result in more fees for the asset managers and advisors .
People with small pots got a very raw deal with abysmal rates being paid out
Those sensible people who have saved will do far better with their own money than anything they could get out of an annuity.
Conan: Just to mention I think the marginal rate in UK is now coming down from 55% to 20% for those accessing their pots. Marginal rate here is 41%. So great incentive there to take it out. I think in general though that people who saved hard over the years and now getting this opportunity over there will not be thinking of flittering it away too handy.
Well, I have a UK private pension pot of about 32k and I was offered, 2years ago, an annuity of 26.05 (sterling) a week in spite of it having been quoted as an enhanced annuiity.Well in the land of the dollar where managing your own pension money is the norm, the findings suggest otherwise - the last figures I saw, a few years ago, suggested that the average American couple had a net worth of about 20K when hitting retirement age...
Give people access to their pension capital and they will spend it. The will always find a good reason for spending money!
There is no doubt that pension reform is badly needed, but this is not it. This is an nice bit of electioneering on Cameron's part - his friends and backers in the City get access to a new fee source and the great unwashed get to feel that they are now better of 'cause they are all going to get a much better return on their money, ya right!
. 2 years ago I was told that I have a 48% chance of seeing year 5 without the cancer returning.
God willing, I will manage to make April 2015 so that I can take my pot as a lump sum and do a few thing that I would like to do, that I just was not able to do while working.
Roll on April 2015.
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