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This would be an excellent move! They should apply it across the board, ISAs and all share accounts too.
Pensions fees cap proposed by ministers to stop 'rip-off' charges
Government has said people saving into pension schemes could be losing thousands of pounds because of charges
The Government is proposing a cap on all pension charges of 0.75 per cent in a bid to stop people losing thousands of pounds on their pension schemes.
The Office of Fair Trading (OFT) estimates that there are more than 186,000 pension pots with £2.65 billion worth of assets subject to an annual charge of above one per cent.
Small variations in charges can amount to huge differences over an extended period of time to the value of the pension pot someone ends up with.
The Government said a person saving £100 a month over a typical working lifetime of 46 years could lose almost £170,000 from their pension pot with a one per cent charge and over £230,000 with a 1.5 per cent charge.
However, a person holding a pension scheme with an annual charge capped at 0.75 per cent could end up being £100,000 better off than those charged at a rate of 1.5 per cent.
The proposals come as the Government prepares to roll out landmark reforms automatically placing people into workplace pension schemes.
Up to nine million people will eventually be newly saving into a pension or saving more under automatic enrolment, which will increase the amount being saved into workplace pensions by approximately £11 billion per year.
More than 1.7 million people have been placed into pension schemes so far under the reforms, which started last year with bigger firms and a higher-than-expected nine out of 10 people so far are staying in their pension rather than opting out.
Pensions Minister Steve Webb said he remained confident the system will be fairer for anyone automatically enrolled into workplace pensions and will address the long-neglected issue of charges.
He said: "The Government believes that enough is enough on charges. People need to know they are getting value for money when they save into a pension and not being ripped off by excessive charges."
The Government is planning "a full frontal assault on pension scheme charges" he added, highlighting "unacceptable practice" used in the past.
Otto Thoresen, director general of the Association of British Insurers (ABI), said the industry recognises concerns over pension charges, which are at their lowest ever average levels.
He said: “It is important that any cap doesn't have the effect of levelling charges up. The Office of Fair Trading raised a number of concerns about this when deciding not to recommend a cap in its recent study of workplace pensions."
http://www.independent.co.uk/news/uk/home-news/pensions-fees-cap-proposed-by-ministers-to-stop-ripoff-charges-8912693.html
Pensions fees cap proposed by ministers to stop 'rip-off' charges
Government has said people saving into pension schemes could be losing thousands of pounds because of charges
The Government is proposing a cap on all pension charges of 0.75 per cent in a bid to stop people losing thousands of pounds on their pension schemes.
The Office of Fair Trading (OFT) estimates that there are more than 186,000 pension pots with £2.65 billion worth of assets subject to an annual charge of above one per cent.
Small variations in charges can amount to huge differences over an extended period of time to the value of the pension pot someone ends up with.
The Government said a person saving £100 a month over a typical working lifetime of 46 years could lose almost £170,000 from their pension pot with a one per cent charge and over £230,000 with a 1.5 per cent charge.
However, a person holding a pension scheme with an annual charge capped at 0.75 per cent could end up being £100,000 better off than those charged at a rate of 1.5 per cent.
The proposals come as the Government prepares to roll out landmark reforms automatically placing people into workplace pension schemes.
Up to nine million people will eventually be newly saving into a pension or saving more under automatic enrolment, which will increase the amount being saved into workplace pensions by approximately £11 billion per year.
More than 1.7 million people have been placed into pension schemes so far under the reforms, which started last year with bigger firms and a higher-than-expected nine out of 10 people so far are staying in their pension rather than opting out.
Pensions Minister Steve Webb said he remained confident the system will be fairer for anyone automatically enrolled into workplace pensions and will address the long-neglected issue of charges.
He said: "The Government believes that enough is enough on charges. People need to know they are getting value for money when they save into a pension and not being ripped off by excessive charges."
The Government is planning "a full frontal assault on pension scheme charges" he added, highlighting "unacceptable practice" used in the past.
Otto Thoresen, director general of the Association of British Insurers (ABI), said the industry recognises concerns over pension charges, which are at their lowest ever average levels.
He said: “It is important that any cap doesn't have the effect of levelling charges up. The Office of Fair Trading raised a number of concerns about this when deciding not to recommend a cap in its recent study of workplace pensions."
http://www.independent.co.uk/news/uk/home-news/pensions-fees-cap-proposed-by-ministers-to-stop-ripoff-charges-8912693.html
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these rates were based on someone investing 100 quid a month,anyone investing 100 quid a month will struggle to get a pension pot of 100 grand so these figures are obviously a pile of shoite and made up on the back of a **** packet
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so people who are paying 0.5% in charges and their are 1000,s,and have invested 100 quid a month for 40 years and arnt getting a pot of 300 grand plus ,please contact the looney mr webb and ask why,
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I hav 14 years till retirement is it worth investing
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It depends on a no. of things.
How much of your earnings fall in the 40% tax bracket. (This part of your earnings is certainly worth investing) How much you were willing to invest. You should consider ISAs as well as or instead of pensions If you do it through a company and they either match some contributions, or give you company NI contributions back on your contributions As a rough guide 100K in your pension would yield ca. 3.5-6K a year from a pension from age 65 http://www.ft.com/personal-finance/annuity-table |
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self employed 20% bracket
hav about 10k disposable income a year once I pay mortgage mortgage free this year(100k equity) single 5k savings no pension state pension 2028 was going to do 10k (cash isa 58%,stock shares 42%) nest egg I know I foooked up pension till way to late |
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I'd say it was probably not worth you starting a pension.
Do an ISA every year. I don't think that there is much point doing a cash ISA at the current rates. Take a look at youinvest. The charging rates are fair and you can do retail bonds as well as share and funds with them. http://www.youinvest.co.uk/ Have a close look at asset allocation. The old rule of having approximately the percentage corresponding to your age invested in bonds is one to consider. |
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thx bud
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