Any finance experts on here

Shaunmg

Shaunmg

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After the budget I am a little concerned. I had a pension pot of £160.000 and bought an annuity in January from Just Retirement. Now I read that thanks to George Osborne's new rules, the share value of my annuity provider has plummeted by almost 50%. Should I be worried.
 
with all due respect don't ask on here about something as important as that, ask whom you bought it from or your IFA
 
CMAC said:
with all due respect don't ask on here about something as important as that, ask whom you bought it from or your IFA
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Totally Agree - Gin and Tonic Financial advice is the worst possible thing to get - go back to your provider or an IFA
 
CMAC said:
with all due respect don't ask on here about something as important as that, ask whom you bought it from or your IFA
Click to expand...

Well thanks for your "all due respect" :D but I thought all golfers were money experts.

Seriously I have asked on a finance forum with no joy, but I remembered thread on here about pensions and a finance advisor who is a forum member contributed, according to my memory

My pension fund was my mineworkers pension that I ill-advisedly transferred to a private fund when the pits closed, then I carried on saving into it for a further 10 years

If Rumpokid thinks £160k is a good pension, well it gets you an annuity of 600 a month after tax, Daylight robbery. I was robbed when transferring from mineworkers, then robbed again with annuity rates. I'm hoping Osborne has not robbed me for a third time by putting my annuity provider out of business
 
Shaunmg said:
Well thanks for your "all due respect" :D but I thought all golfers were money experts.

Seriously I have asked on a finance forum with no joy, but I remembered thread on here about pensions and a finance advisor who is a forum member contributed, according to my memory

My pension fund was my mineworkers pension that I ill-advisedly transferred to a private fund when the pits closed, then I carried on saving into it for a further 10 years

If Rumpokid thinks £160k is a good pension, well it gets you an annuity of 600 a month after tax, Daylight robbery. I was robbed when transferring from mineworkers, then robbed again with annuity rates. I'm hoping Osborne has not robbed me for a third time by putting my annuity provider out of business
Click to expand...

Certainly no expert!

But almost certain that you would be covered through Financial Services Compensation Scheme - as a last resort. Pensions & Annuities vary hugely, so how/how much would have to be checked if it happens.

That company is part of a huge Financial Services concern, so should be safe, but......
 
Shaunmg said:
After the budget I am a little concerned. I had a pension pot of £160.000 and bought an annuity in January from Just Retirement. Now I read that thanks to George Osborne's new rules, the share value of my annuity provider has plummeted by almost 50%. Should I be worried.
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Sorry but I can't really help with this one. Yes annuity companies are likely to struggle with the new pension rules, as huge numbers will be drawing cash, rather than purchasing a pension annuity. Understandable why the share price has fallen so sharply. Being regulated by the FCA would give protection, but it could become messy if Just Retirement got into trouble. Not much you can do though, as now you have purchased your annuity, you can not change companies.

Speak to the Company if you dealt with them direct, or to your financial advisor if you used one. To put your mind at rest you need to know what protection you have against a worse case scenario, i.e another Equitable Life.

I would mention that I know nothing about Just Retirement, but assume you or your advisor checked into the Company before using them ?
 
As a retired IFA/Benefits Consultant I tend to shy away from commenting on these issues as I do not want anything I say to be construed as advice.

However, I would say that the sudden fall in the share price of Just Retirement could be seen as merely a knee-jerk reaction by the City to the Budget and its potential effect upon the Company. This type of reaction is not unusual and it may be worth noting that the price has subsequently started to recover.

It should be remembered that the Chancellor's proposed changes merely result in retirees not being obliged to purchase an annuity. I suspect that many still will if only with part of their fund and to provide some certainty to their retirement income. Also Just Retirement are, I believe, involved with other products.
 
Can't remember which program I saw it on but this was raised, i.e would falling share prices effect my pension. The clear answer was NO, so stop worrying wish I could be clearer for you regards channel and time but sadly I can't but I did see it.
 
Shaunmg said:
Well thanks for your "all due respect" :D but I thought all golfers were money experts.

Seriously I have asked on a finance forum with no joy, but I remembered thread on here about pensions and a finance advisor who is a forum member contributed, according to my memory

My pension fund was my mineworkers pension that I ill-advisedly transferred to a private fund when the pits closed, then I carried on saving into it for a further 10 years

If Rumpokid thinks £160k is a good pension, well it gets you an annuity of 600 a month after tax, Daylight robbery. I was robbed when transferring from mineworkers, then robbed again with annuity rates. I'm hoping Osborne has not robbed me for a third time by putting my annuity provider out of business
Click to expand...

If you were advised to transfer out of a final salary scheme, did you receive compensation for the mis-advice?

Events have conspired against us pension wise. Final Salary schemes were not perceived to be so valuable back in the 80's or thereabouts due to:
Interest rates being around 15% then
Life expectancy being allot shorter
Tax was reclaimed on income dividends (this was Mr Browns idea to remove this).
Stocks and shares have not performed as hoped

Hence the idea to switch from final salary to money purchase wasn't so daft at the time - but it was a gamble which didn't pay off for those that did it. Hindsight is a wonderful thing however.

The shares in Just Retirement reflect the company value. Because of the announced flexibility (which still has to be ratified btw - although it will) on taking pension benefits the company value fell. Your annuity pot is invested largely in fixed interest investments such as gilts, as they provide a steady income to pay you with. As said by others, its nothing to worry about and if it does all go wrong, the FSCS is there.

Saving for retirement is not a con - but not understanding the economics behind it all leads some to think it is.

You are welcome to PM me with questions you may have.
 
Premium Bonds is the simple answer, although the prize funds are due to reduce shortly.

Example 1
My mum has 11k in a Nat West ISA that pays her £2.60 a month interest, so over a year that is a massive £31 and some pennies.

Example 2 12 months ago we put 20K into premium bonds, she has won 11 lots of £25 making £275 even allowing for the increased amount in bonds v the ISA, it is still a much better return although only 1.37% return on capital,

Also you could win nothing and at the same time, inflation has bitten a little bit off your capital
But you could win a big one

Interest rates are rubbish, most cash ISA's are below 1% , some current accounts (Santander 123) actually pay a bit more.

If you find anything better, do tell
 
PhilTheFragger said:
Premium Bonds is the simple answer, although the prize funds are due to reduce shortly.

Example 1
My mum has 11k in a Nat West ISA that pays her £2.60 a month interest, so over a year that is a massive £31 and some pennies.

Example 2 12 months ago we put 20K into premium bonds, she has won 11 lots of £25 making £275 even allowing for the increased amount in bonds v the ISA, it is still a much better return although only 1.37% return on capital,

Also you could win nothing and at the same time, inflation has bitten a little bit off your capital
But you could win a big one

Interest rates are rubbish, most cash ISA's are below 1% , some current accounts (Santander 123) actually pay a bit more.

If you find anything better, do tell
Click to expand...

Santander reduced theirs from 3 to1.5 , Tesco is paying 3 percent, max £3000 and 2 accounts per customer.
 
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