1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Hi Guest, welcome to the TES Community!

    Connect with like-minded education professionals and have your say on the issues that matter to you.

    Don't forget to look at the how to guide.

    Dismiss Notice

10 year annuity?

Discussion in 'Retirement' started by roseangel, Mar 26, 2012.

  1. Or money.co.uk, that's a good site too.
    How about usiing your time now to build up a little nest egg to put down on a property to rent out? Could be a good option.
     
  2. I'm 52 and will be retiring this Summer. In my 40s, I knew I'd be doing this so simply saved, to provide the cushion until I'm 60 and get my pension.. I used my full ISA allowance for both cash and shares, bought tax free savings certificates and saved using 3 and 5 year bonds. You don't need a "financial advisor" with their 2 gcses and smarmy 'we have secret information' ways, and annuities are so poor they are little more than Government backed theft, even if they are tax efficient. Simply save using the vehicles out there, and when the time comes, spend it. Forget 10 year annuities as well. It's another well marketed slick con.
     
  3. davidmu

    davidmu Occasional commenter

    How refreshing to find mymoose taking the same route as myself. I suggest you read the financial pages of a quality Sunday paper, look at websites such as Fidelity and buy some units on a monthly basis. 10 years should give you a substantial fund that you can then use however you wish.
     
  4. jacob

    jacob Lead commenter

    My experience of stakeholder taken out in 2001 (see my thread below) is that the performance is **** because it is based on the usual "stocks and shares". I was intending to go before 60 when I took it out (as an addition to TPS), but now it looks like I might just be able to retire a short while (maybe a year or two) before 66 when I can finally claim OAP. (Can't actually see me lasting that long because FE, where I work, are getting rid of older staff by devious routes and replacing them with unqualified "trainers" who get paid a lot less.)
    It is really a question of who you trust. I do trust my independent financial adviser, but have come to realise he is restrained by the system. If I had been able to put the maximum into ISAs every year I would have a much better pot lurking, and not be limited to buying a (distinctly crappy and loaded in the favour of the insurance companies) annuity. The financial markets (including insurance companies) are stacked in favour of the wealthy who may be able to afford to write off the odd million here and there, while the ordinary joes get shafted again and again. The ISA limit is a joke, the interest rate is another joke (way less than infaltion), and people lose out because the bankers and the filthy rich control everything. Money makes money.
    I know of a case where a person got a house and an amount of capital in 1980. The house is worth TEN times what it was then (this is not in the South East either), the capital is, in actual money, half its original value despite careful investment over the years in various schemes and through independent and bank financial advisers. This is a bloody scandal, but the disclaimer "markets may rise and fall" allows them to get away with it, and rip off small investors while the rich get ever richer. Has there ever actually been a year where the rates paid to investors were greater than the rate of inflation?
     
  5. welshskyline

    welshskyline New commenter

    Jacob, if you didn't want to invest in "stocks and shares" in your stakeholder pension why didn't you just tick the "Cash" option?


     
  6. jacob

    jacob Lead commenter

    Did you actually read what I wrote? For starters I don't remember there being a "cash only" option, and at the rates paid out (read the rest of the post) they would probably have been just as ****. Have YOU had a good deal from YOUR stakeholder then?
     
  7. welshskyline

    welshskyline New commenter

    When you set up any kind of pension you always have a choice of investment funds, one of which is "cash". It is also quite commonplace to move your investments into "cash" as you approach retirement.
    This is because "cash" is a very low-risk investment although your investment is also protected against massive fluctuations in the stock market. So, when you sign up for a Pension you do not havwe to invest in "stocks and shares".
    My wife took out a stakeholder pension bavk in 2001 and she puts in the maximum £3600 every year - it has gone up and down with the stockmarket.
     

Share This Page