Mandatory Ponzi scheme enrolment

Surely any return from a 1% pension contribution isn't going to be worth much? Even 5% (10%) isn't going to provide any decent state of living.
 
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I'd hoped there would be a decent debate about pension schemes being hamstrung by ridiculous statutory allocations to Gilts, but then I remembered this was GD. :)
 
What is the benefit for joining a pension scheme with the added risk that the pension company might go bankrupt, blow your money on the wrong investment or inflation destroys its value. When if you had money to spare, put it in to savings or other assets or buy precious metals, all with probably less risk?

What about those guys that lost all their pensions ? Don't come with that government guarantee non sense, as soon there will be no one left too bail the government out.
 
PMKeates said:
Depends how much you earn.
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Across all salary ranges it is going to be a huge drop, all that changes is if you can afford the weekly shop or not. An average salary would only return less then £400 a month (plus state pension).

groen said:
What is the benefit for joining a pension scheme with the added risk that the pension company might go bankrupt, blow your money on the wrong investment or inflation destroys its value. When if you had money to spare, put it in to savings or other assets or buy precious metals, all with probably less risk?

What about those guys that lost all their pensions ? Don't come with that government guarantee non sense, as soon there will be no one left too bail the government out.
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I suggest you try buying some gold and seeing how you get on.
 
groen said:
What is the benefit for joining a pension scheme with the added risk that the pension company might go bankrupt, blow your money on the wrong investment or inflation destroys its value. When if you had money to spare, put it in to savings or other assets or buy precious metals, all with probably less risk?

What about those guys that lost all their pensions ? Don't come with that government guarantee non sense, as soon there will be no one left too bail the government out.
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You're absolutely correct.
Lets stash all of our money in our mattresses or blow it on precious metals.
 
groen said:
What is the benefit for joining a pension scheme with the added risk that the pension company might go bankrupt, blow your money on the wrong investment or inflation destroys its value. When if you had money to spare, put it in to savings or other assets or buy precious metals, all with probably less risk?

What about those guys that lost all their pensions ? Don't come with that government guarantee non sense, as soon there will be no one left too bail the government out.
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You're right. If only there were legislation that ringfences pensions after a scandal involving a high profile newspaper's pension pot being skimmed off by the newspaper's owners in the 1990s. If only all of this had happened. If only.
 
groen said:
What is the benefit for joining a pension scheme with the added risk that the pension company might go bankrupt, blow your money on the wrong investment or inflation destroys its value. When if you had money to spare, put it in to savings or other assets or buy precious metals, all with probably less risk?

What about those guys that lost all their pensions ? Don't come with that government guarantee non sense, as soon there will be no one left too bail the government out.
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ok so if you had to do something with your 1% of your salary what would you do with it ?
 
It is only mandatory for your employer to have a scheme for you to enrol into, should you wish to. You are perfectly entitled to opt out if you don't want to do it. If you do opt out though it also means that your employer isn't obliged to make any contributions for you either.
 
Just so I don't explode with frustration....

A Ponzi scheme never invests money, it takes money and gives it to other "investors", never to be seen again.

A pension scheme invests your money in "stuff" and yes it could go down in value, but over the length of time its highly unlikely, towards retirement you can move to cash based safer investments.
 
wesimmo said:
Just so I don't explode with frustration....

A Ponzi scheme never invests money, it takes money and gives it to other "investors", never to be seen again.

A pension scheme invests your money in "stuff" and yes it could go down in value, but over the length of time its highly unlikely, towards retirement you can move to cash based safer investments.
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Ponzi scheme have been known to invest the money that is taken, that is how madoff did it. He would take other people's money and use that money to invest with. Then any money he made from that he would keep for himself and some of the money he made from that he would use to pay off people that are expecting returns. Its exactly the same as a ponzi scheme.

The differences:

Ponzi scheme:
Pays out relatively quickly.
no employer contribution.

Pension scheme:
pays out only when you reach a certain age. (giving the scheme runner decades to use your money for their own benefit)
Sometimes comes with employer contribution.
 
LOL groen.

But...

platypus said:
move somewhere they don't give a damn about saving for your retirement.
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Why should someone else give a damn about groen saving for his retirement? That's his responsibility. He may already plans for saving for retirement with pension schemes, investments, money under the mattress... so he doesn't need to stick 1% in yet another scheme.
Work-place pensions may be a good idea, but IMHO the state should be "strongly suggesting" rather than automatic enrolment.

And...

PMKeates said:
Tbh, 'National Insurance' is closer to a ponzi scheme than an insurance scheme.Workplace pensions are provided by an actual provider that isn't using a ponzi scheme.
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This.
 
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