The New Banker/Government Scam. Workplace Pension. Are you in?

Posted 3rd Oct 2012
I'm going to be opting out. I just see spivery and thievery.

Another pot of money to be borrowed against, speculated and stolen.

I'm not in.
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Ok, so theoretical scenario.

Employee earning £1000 pays 5% to their pension per month for 30 years, so has paid £18,000 into it after that time. Their employer pays the same amount as they match the pension, which the new rules ensure to a point. So EE has a pot of £36,000.

Assume that teach year the pot grows by 1% per year, so after 30 years there is a pot of £42,000.
In Punkstoner1's opinion then say half of it is 'stolen' by the banking industry that still leaves a pot of £21,000.

Assuming existing rules stand you can claim 25% as a lump sum, so you get £5,250 and then a small income from what's left.

Realisically it will probably grow at 3%+ per year for 30 years. So the new pot is £59,000. 25% of that is £14,500 and money to get an income from.

Bear in mind the EE has paid in £18,000, not accounting for a rise in income over that 30 years. So the EE gets a lump sum of similar to what they put in + extra pension.

Also on a wage of £1000 per month paying £50 to the pension, the employee is only £34 out of pocket due to tax and NI breaks. So they pay £34 and the actual £50 from them and £50 from employer =£100 per month into the pot.

So £12,240 from your pocket gets you a £59k pension fund.

Ignore the scaremongering and see it as money for nothing. How many people will save any money for retirement?
Opt out by all means. It's your right after all.

Just don't expect anyone else to pay for your retirement. I hope you like working for B&Q after you hit 67 years old...

You are just being another drain on the system who can't see further than the next pay check. Try having some social responsibility and MTFU!
Edited by: "Sworld" 4th Oct 2012
I find this interesting, my company started this 1 year early. The payments are 1% for the first year, 2% second, 4% third ect. What i don't like is that there is no cap on the percentage taken - could end up at 10-15%, not many people can afford that. Those people that think the pension age is going to stay at 67 are dreaming also, this will rise to 70 within a few years and probably more.

I doubt i will live that long with my life of excess!!! For this reason i'm out!
Pensions never get stolen so this scheme sounds totally legit.

Enjoy your free money everyone!
With the Bank of England Base Rate at a whopping 0.5% (and inflation running around the 3% mark), who wouldn't be piling everything they can into a long term savings plan such as a pension???

Oh yeah, anybody with half a brain.

If you want people to save for the future, make it worth their while: interest rates north of 5%. Simples.

Ignore the scaremongering and see it as money for nothing. How many … Ignore the scaremongering and see it as money for nothing. How many people will save any money for retirement?

punkstoner has invested his money in a few Buy-To-Lets.
Private Pension could be a wonderful thing. But we are talking about your money being held by the most devious and criminal minds to man. Ie Insurance companies and Government. With such a huge money pot to dip into you can be sure your pension scheme will become even more complex and combersome, tied up with complicated legislation and tax hikes. You will suffer and find it difficult to make the correct choice and you will be led down the garden path with just the honey pot to **** in and nothing to leave to your familiy. However if you spend it all, enjoy your life whilst your young and get to a pension age with a debt, you will enjoy the rest of your life drunk, stupified and all paid for by society. I wish I had done the latter.
they ran this scam in the late 80s and stole all the money in the pension pot...good luck suckers
It will work out pay in £1, pensions manager gets his outdoor pool heated when it's snowing and you might even get £1.25 back but it will have 30p worth of purchasing power by today's standards by the time you get it.

Never trust a man in a suit and you won't go far wrong. If you are a man in a suit yourself.....
Just found out recently that I'll be auto enrolled in ths pension scam soon, this is going to happen completely against my will and with no prior information, particularly information vital to opting out which only comes after the enrollment has taken place, I feel utterly disgusted that I should be automatically entered into a contract (pension scam), without my consent, against my will, and worse still being unable to see the contract(pension scam) which I haven't agreed too, until after the crooks have enrolled me.

Working at leisure through employment agencies due to having bought and paid for property assets and no requirement to work to excess any longer, and regardless of the propaganda preaching adverts(as if I believe Theo Paphitis appeared out of the goodness of his heart and wasn't paid at least a couple of million for his time) I only just found out I actually qualify.

I'm utterly horrified at the thought of crooked bankers and financial conmen, being given control of my own money against my will, as I, and I alone am the only person who knows what's best for me and my own financial security.

As a result I am refusing to undertake any work during any period of enrolment, absolutely guaranteeing no funds of mine can be put into the scam, and as a side effect I pay no taxes either, and shock horror HMRC will actually have to refund me part of my personal allowance to boot. In the event I should be dismiss I will quite happily claim constructive dismissal due to events both out of my control and against my will making it impossible for me to reasonably undertake my duties.

This pension scam has got to be the worst national scandal I can remember in over thirty years of working. Along with other high profile and appaulling failures, come the 2015 elections this goverment should be serverly punished.
Just something for people to remember, you are automatically opted-in, you then have to opt-out.... However, I've been told that after a certain period you will then be opted-in again and have to opt back out again... This cycle then continues...


P.S. Oneday77 is right about the benefits of a pension, if you put £80 (£60 if you are a higher rate tax payer) this instantly becomes £100 also if your employer is putting a contribution then that is even more for you pension pot... I certainly understand peoples skepticism around pensions, as a country we do a poor job of encouraging people and making the system transparent.

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