BRIDGWATER SENIOR CITIZENS’ FORUM - PRESS RELEASE – 9th AUGUST
fw | 10.08.2010 09:22
CHARGES & FEES ARE CUTTING 50% FROM BRITISH “PENSION POTS”
Bridgwater Senior Citizens’ Forum members reacted angrily to a report from a leading pensions fund manager last week, which says British savers are retiring with pension pots worth 50 per cent less than some of their European counterparts, despite having invested the same amount of money. This is because of an array of hidden charges in the pensions’ system
David Pitt-Watson, senior executive at Hermes Fund Managers, says fees levied by Britain’s pensions system are blighting the retirement plans of millions of people, who are left with much less than overseas savers, despite contributing just as much.
The total costs of some plans from high street names such as HSBC, Legal & General and Scottish Widows amount to more than £200,000 over 40 years for someone saving £200 a month. “Our industry is not performing its function well,” said Mr Pitt-Watson, whose company oversees billions of pounds of savings. “It is terribly inefficient.”
Someone saving £1,000 a year throughout their working lives could expect to retire on an inflation-protected pension worth £16,080 a year if they did not pay fees. However, the typical fees levied by British pension funds – which include several in addition to the “annual management charge” familiar to many investors – would reduce the payout to just £9,900 annually.
Chairman Phil Sealey said: “This ‘skimming’ off of funds is not acceptable, and the Government should step in to clean up the pensions industry. Millions of British pensioners now rely on private pensions to fund several decades of their lives, because the state pension is so meagre. With the lowest state pension in Europe, which condemns 2.4 million pensioners to living below the poverty line, this adds insult to injury for those saving for their retirement.”
The next meeting of Bridgwater Senior Citizens’ Forum is on Thursday 2nd September, starting 10.30am, at the Bridgwater Baptist Church Hall, Little St Mary Street, Bridgwater. All aged 50 or over are welcome. Carolyn Arscott, NHS Somerset, will offer useful advice on how to avoid accidents in the home.
Bridgwater Senior Citizens’ Forum members reacted angrily to a report from a leading pensions fund manager last week, which says British savers are retiring with pension pots worth 50 per cent less than some of their European counterparts, despite having invested the same amount of money. This is because of an array of hidden charges in the pensions’ system
David Pitt-Watson, senior executive at Hermes Fund Managers, says fees levied by Britain’s pensions system are blighting the retirement plans of millions of people, who are left with much less than overseas savers, despite contributing just as much.
The total costs of some plans from high street names such as HSBC, Legal & General and Scottish Widows amount to more than £200,000 over 40 years for someone saving £200 a month. “Our industry is not performing its function well,” said Mr Pitt-Watson, whose company oversees billions of pounds of savings. “It is terribly inefficient.”
Someone saving £1,000 a year throughout their working lives could expect to retire on an inflation-protected pension worth £16,080 a year if they did not pay fees. However, the typical fees levied by British pension funds – which include several in addition to the “annual management charge” familiar to many investors – would reduce the payout to just £9,900 annually.
Chairman Phil Sealey said: “This ‘skimming’ off of funds is not acceptable, and the Government should step in to clean up the pensions industry. Millions of British pensioners now rely on private pensions to fund several decades of their lives, because the state pension is so meagre. With the lowest state pension in Europe, which condemns 2.4 million pensioners to living below the poverty line, this adds insult to injury for those saving for their retirement.”
The next meeting of Bridgwater Senior Citizens’ Forum is on Thursday 2nd September, starting 10.30am, at the Bridgwater Baptist Church Hall, Little St Mary Street, Bridgwater. All aged 50 or over are welcome. Carolyn Arscott, NHS Somerset, will offer useful advice on how to avoid accidents in the home.
fw
Original article on IMC Bristol:
http://bristol.indymedia.org/article/692966