There is much in the news currently about public sector pensions and all the talk of strike action to protect them but the irony is that many in the private sector would be quite happy with some of the pension provision, even that currently on offer to public sector workers. Pensions outside the public sector are much more patchy in their provision and might not be offering the kind of pensions people would have hoped for in the long run – a recent survey by Prudential showed that one in three workers didn't have any pension at all, which could lead to an impoverished old age if action is not taken to avert the situation.
Even of those who do have private sector pensions in place we at Enable, IFA’s based in Bishop's Stortford, would agree with the thoughts expressed this week in The Telegraph, “the two thirds who have joined their workplace scheme need to take an active interest in how their money is being managed. If not, it could cost them in the long run.
A combination of low contribution levels, poor investment returns and falling annuity rates means many of these DC schemes will produce far smaller pensions than those paid through final salary schemes, where people typically expect to retire on half their salary.”
If you have concerns about how your pension is being managed or simply want to understand what it is you have let Enable explore it with you.
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