Are Pensions A Scam?

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Timestamps:
00:00 - Scam
00:41 - Missing funds
03:39 - Bad advice
06:34 - Sponsor
07:34 - Political Meddling
10:00 - The Auto enrolment scam
13:43 - Incredible

[DamienTalksMoney]

I bit my lip.. Check out Manual here and get 55% off your first order using my code DTM55.
bit.ly/4a13ZVi

[MrKlawUK]

They are not user friendly definitely. Why do we have to ‘track down’ old pensions? We should be able to log into a government website with our NI number and get a simple list and contact info for all providers we’ve been signed up to - all the info should be available easily. Being able to just ‘lose’ billions because you can’t find a bit of paper is insane.

[Holdeenio]

My grandad was one of those whose retirement was stolen by Maxwell, an event he never emotionally recovered from. I agree with all of your points Damien. I’ve build up more wealth in my 20s inside my sipp than I have equity in my home - even after the crazy years of growth in the uk housing market. A pension is not a scam, but unless you choose to get educated on how to use the system, you will lose.

[harrysahota]

It is a scam when the government keeps increasing the state pendion age which means you can't access your private pension pot 10 years prior to state pension. It annoys you that you plan to take your private pension at 55 then it goes up to 57 then 58. You kind of start to think whats to point paying in for 30 or 40 odd years!

[slw_racer]

The best bit with a pension is getting tax relief on the way in, but on the way out you can transfer your pension to a QROPS in another country which is a financial product that recognizes the UK pension rules. The only difference is you pay taxes in the host country! so emigrating right before retirement can save you a boat load of tax in the host country as you pay at the tax rate in the country you moved to and not the high level UK tax. And the best bit is HMRC gets £0 and it's perfectly legal.

[antoinedodsonsbandana]

I used to pay into my workplace pension for about 15 years because it had always been drummed into me by everyone, including all media, that it's the best thing to do. I opted out a few years ago because I realised that it wasn't right for me, as I'd rather have the money now, than wait until I'm in my late 50s/early 60s to access any of it. I may not even live to that age. I recently transferred the amount that I had previously built up, to a SIPP. It's far more transparent than the pension I had, and I have complete control and visibility over where the money will be invested. I wish I'd done this years ago, but better late than never, I suppose.

[zortzsborgnine]

I always remember in the early 90's (when I was a teen) some scumbag pension 'adviser' coming to my parents house and abruptly walking out mid way on us because my dad dared to ask him about a fund or investment company he wasnt affiliated with. The audacity and rudeness of the guy put me off pensions for life! I thought they were all scammers on massive commissions. Thank God for the internet & channels such as pensioncraft and yourself came along to help us make more informed decisions.

[ApexCypher_]

Where’s there’s money, there’s scams.

[defbref]

Correction Damien - The personal pension age is not linked to state pension age in legislation, the only legislation currently is the raise to 57 from 55 in 2028. There was a vague suggestion by the coalition government to make it State Pension Age - 10, but that has never been written in to legislation, but unfortunately its sort of stuck and is often repeated. Not saying that any future government won't make changes, but just clarifying that the only confirmed raise is the 55 to 57 one in 2028.

[NovaYung]

damien you mentioned a great point about shifting money over from your workplace pension provider over to a SIPP every so often, i’ll be maximising this as my work pension provider currently has 4x more fees than Vanguard SIPP

[benj]

My dad invested in a legal and general pension for most of his life. He's nearly at retired age and tells me every time how much of a mistake it was. It's worth next to nothing compared to what he put in.

I'm following the advice you often give. Splitting up the risk across lots of areas.

[andy_]

Great video, probably the biggest scam is the fee’s associated with default funds, auto enroll has created an entire industry of high fee employer schemes.

[findlayarches]

I'm so glad I found this channel. I worry about this stuff as I find the Information hard to take it but the way you break down things in a normal blokeish way is a god send for me. Thank you so much. Your channel is about to blow up

[palmtree-el]

I have an L&G workplace pension and am being charged 0.12% platform fee and 0.1% for the global developed equity index fund. Which I think is reasonable. Some employers subsidise the pension charges so it's worth checking on this.

[michaelmotteram]

I’m with the fire brigade pension scheme and it’s changed 4 times since 2096 when I joined each time taking more % of my pay now 13.5% and almost halving what I get at the end, I signed a contract at the start but seems they can change that contract whenever they see fit without me needing to agree or sign anything. I just feel cheated already and still have 19years left to work.

[maxodidily]

The lack of control with Pensions is why I don't use it more. My stocks and shares ISA has performed much better than my work pension. I view it as more of a backup plan. Now if there was a pension where I could specify what the money is invested in that would encourage me to use it more.

[carguyuk]

I am a member of the Halcrow Pension fund. When Halcrow was sold to an American company, they gave members the option to lose 10% of their pension or fall into the PPS. They walked away from their commitments to benefit share holders. Members were forced to accept the change and the regulator and government allowed this to happen. You pay into a scheme for years with a promise to payout and then the rug is pulled out from under you.

[neolithic]

In Canada our government pension (the CPP) is fully funded for at least the next 75 years. They make small adjustments, as needed, to ensure that it can continue. I think it's an important part of our social system and I'm glad we have it. That being said, it won't pay enough to rely solely on it for retirement - people should also be saving for their retirement individually.

[leightonharrison]

In 1991 is was 19, and those kind of pension woes in the news, and my dad, were the reason I didn't want a pension. Now at 51, the realisation a few years ago has set me on the path for a better future.

[Me-llig]

I remember in the early 80s a mate worked for Irish Life. He conned me out of £2, 000. Never seen him again after that but did learn years later he is now a multimillionaire. I was so disgusted and angry I shredded my policy in the 80s and now Irish Life who come under another name cannot locate anything related to me. I hate this ex-mate who conned me and did a runner. He put me off pensions and ISAs for decades after that and basically ruined my trust in saving money anywhere.