Saturday, Oct 11, 2008
Ignorance is bliss
BBC: People 'unaware' of pension risks
Millions of people are being encouraged to take too much risk with their pensions, the government-funded Pensions Advisory Service has warned.
It said workers who pay into pension schemes which invest heavily in shares may not be aware of the risks.
Posted by stevie dee @ 10:22 AM (642 views) Add Comment
17 Comments
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1. paul said...
And who proposed this crackpot scheme for the private sector pension majority? The government. And why do we have to constantly seek high-risk gains? Because Gordon Brown removes billions every year from our pensions basically to pay for public sector pensions.
Robbing the poor to pay the rich. You won't find the BBC talking about that though ...
2. plato said...
My managed pension fund lost nigh on 8% of it's value yesterday alone. Scandalous. As I've said I switched to the cash fund a few months ago which rose .03%......... but what about all the people who simply don't know what to do? l wonder how many people realise just what they've lost in the past year and what that means for the future?
This warning once again is after the fact.
3. Fred56 said...
Abandonned all pensions years ago after repeated rip-offs. A quote from accountant who did the same - you may as well take your life saving and play cards with it, like going blind in three card brag.
4. jack c said...
This announcement (if thats the correct term) which comes after the biggest declines since 1987 will (IMO) fuel the panic sweeping the UK in respect of equity backed investments including defined contribution/personal pensions. The conspiracy theorists will have a field day promoting the fact that this is a deliberate move - either that or the BBC reporters are irresponsible and thick as whale omlettes.
5. jack c said...
@plato - if you have moved to a "cash" based pension fund for security purposes you need to fully check out the fund itself and precisely what it is made up of - some of these moneymarket funds are trading in more complex financial instruments - in simple terms they are only brought into question when the fund loses value (and I have seen this happen in recent weeks). If you are willing to divulge the provider and the fund? I will report back on it for you.
6. plato said...
Thankyou jack
Here is the direct link. This is a PPP originally with Lloyds---LloydsTSB----Sc.Widows. Difficult to get details on.
http://webfund6.financialexpress.net/clientsv21/scottishwidows2/pricetable.aspx?fname=&strRec=0&selCat1=Formerly%20Lloyds%20TSB%20Pension&selCat2=&selCat3=
7. Eternal Sceptic said...
That's really rich coming from a govinment that has just presided over the total trashing of the economy. I think an A level economics student could have done better
8. plato said...
OK tried it myself Link no good . Go to Scottish Widows--------pension funds ------- personal pensions ------- funds -------- formerly Lloyds TSB.
9. jack c said...
plato - is it an old TSB plan? where they only have 2 funds available ie Managed or deposit fund
10. plato said...
No Under Fund Prices Click the drop down box click on formerly Lloyds TSB Pension there are 11 funds.
11. jack c said...
OK - I'm onto it now and will check it out for you
12. plato said...
Thanks jack
Just emailed titan - won't be able to make it from here but back in the UK mid next year.
ps I can see a few bans coming up here. Apologies to Webm.
13. jack c said...
plato - (1) this looks to be a closed fund (2) there is no fund fact sheet available (3) indepenent reserach sites such as morningstar carry restricted info on this fund as it appears closed to new business (4) It is a Sterling moneymarket fund and the graphs I've looked a show continuous positive returns.
My suggestion is to ring Scot Wids and ask them to provide a fund fact sheet and get them to confirm to you the precise make up of the fund including the top 10 holdings - if they are using a mixture of institutional deposits - guess where some of it might be !
Fortunately for you it is an internal fund and the FSCS protection will apply - not that I am for a second suggesting there is a problem but my view is it will be your hard earned cash and you need to know exactly where its invested and what it's in.
14. plato said...
Jack thankyou so much. I'll try again have tried before but didn't get anywhere I will now bug them. What you have explained is very helpful -- thanks again.
15. jack c said...
plato - no problem - I'm off out now and wont be back on here until late tonight, however if you cant in due course get the info from Scot Wids post back on another future thread and I'll get it for you - I have a very good relationship with a SW technical consultant - after all they should operate these funds with a fair degree of transparency.
Finally if they are obstructive in any way mention three little letters TFC - the FSA treating customers fairly intiative now has the ins co's jumping through hoops.
16. jack c said...
That should be TCF (treating customers fairly)
17. alan said...
I switched my pension out of property when the Dow peaked about a year ago. It went into Cash deposits. Thanks HPC website.
As for risk, the treasury is guaranteeing £250bn of lending between banks. Who pays if that goes belly up?
...not to worry, the G7 are busy working out how to avoid that "Minsky Moment", so perhaps I should take myself off to the local. I can't change the G7's plans anyway.
Cheers !