4 ms·

Pensions used to be free and great, until the company stole from the pension before they went bankrupt and you were left with nothing.

by tectec 5mo ago

gadders 5mo ago
Pensions used to be great when you had final salary ones.
- pjc50 5mo ago
  Unfortunately people stopped smoking. (the downside of 20th century work on increasing life expectancy is that most of it happens in retirement, making pensions much more expensive) edit: I have not done the maths, but I would not be surprised to discover that the total average pension paid to someone retiring at age 65 in 2026 was much more than the total average pension paid to someone retiring at age 65 in 1986, while at the same time the weekly amount of the earlier one would be higher. Because the more recent one has to spread the money over more years. (inflation adjusted as well)
  - gadders 5mo ago
    I'd retire later if I got a higher pension rate. i.e. Opt to retire at 65, but you get a defined contribution pot Opt to retire at 70, you get final salary pension.
    - ben_w 5mo ago
      FWIW, the UK state pension does go up if you defer it: https://www.gov.uk/deferring-state-pension/print https://www.gov.uk/deferring-state-pension/print
      - gadders 5mo ago
        Yeah, but I want 2/3 of my salary when I retire, not £300/week.
        ben_w 5mo ago
        Your private pension is only 70 a week?
syel 5mo ago
Yeah that must have sucked tbh
pjc50 5mo ago
You'll never guess who was responsible for the biggest pension scandal in the UK: https://en.wikipedia.org/wiki/Robert_Maxwell https://en.wikipedia.org/wiki/Robert_Maxwell (yes, father of Ghislaine)
- syel 5mo ago
  I've seen this story in the Tetris movie, he came off as a terrible businessman who was stealing people's money to save his company from bankruptcy
lotsofpulp 5mo ago
Pensions used to be great when 0.1% expense ratio target date funds were not available. It makes no sense to give someone else control of your savings in this day and age.
- syel 5mo ago
  I think it depends on your financial literacy, I know a lot of people who have no idea how to invest their money, you would be surprised how many people would be more comfortable with someone else managing their life savings for them
  - lotsofpulp 5mo ago
    Someone choosing to be illiterate and getting scammed out of their money still does not make sense. Life doesn’t get much easier than picking the target date fund with the year you expect to stop working.
  - pjc50 5mo ago
    You are absolutely right to want a pension in addition to just regular savings, because a pension has huge tax benefits. (UK)

Pensions used to be free and great, until the company stole from the pension before they went bankrupt and you were left with nothing.

by tectec 5mo ago

Pensions used to be free and great, until the company stole from the pension before they went bankrupt and you were left with nothing.

gadders 5mo ago

Pensions used to be great when you had final salary ones.

pjc50 5mo ago
Unfortunately people stopped smoking. (the downside of 20th century work on increasing life expectancy is that most of it happens in retirement, making pensions much more expensive) edit: I have not done the maths, but I would not be surprised to discover that the total average pension paid to someone retiring at age 65 in 2026 was much more than the total average pension paid to someone retiring at age 65 in 1986, while at the same time the weekly amount of the earlier one would be higher. Because the more recent one has to spread the money over more years. (inflation adjusted as well)
- gadders 5mo ago
  I'd retire later if I got a higher pension rate. i.e. Opt to retire at 65, but you get a defined contribution pot Opt to retire at 70, you get final salary pension.
  - ben_w 5mo ago
    FWIW, the UK state pension does go up if you defer it: https://www.gov.uk/deferring-state-pension/print https://www.gov.uk/deferring-state-pension/print
    - gadders 5mo ago
      Yeah, but I want 2/3 of my salary when I retire, not £300/week.
      - ben_w 5mo ago
        Your private pension is only 70 a week?

syel 5mo ago

Yeah that must have sucked tbh

pjc50 5mo ago

You'll never guess who was responsible for the biggest pension scandal in the UK: https://en.wikipedia.org/wiki/Robert_Maxwell https://en.wikipedia.org/wiki/Robert_Maxwell (yes, father of Ghislaine)

syel 5mo ago
I've seen this story in the Tetris movie, he came off as a terrible businessman who was stealing people's money to save his company from bankruptcy

lotsofpulp 5mo ago

Pensions used to be great when 0.1% expense ratio target date funds were not available. It makes no sense to give someone else control of your savings in this day and age.

syel 5mo ago
I think it depends on your financial literacy, I know a lot of people who have no idea how to invest their money, you would be surprised how many people would be more comfortable with someone else managing their life savings for them
- lotsofpulp 5mo ago
  Someone choosing to be illiterate and getting scammed out of their money still does not make sense. Life doesn’t get much easier than picking the target date fund with the year you expect to stop working.
- pjc50 5mo ago
  You are absolutely right to want a pension in addition to just regular savings, because a pension has huge tax benefits. (UK)