Author Topic: Why private pensions are a rip-off  (Read 2299 times)

0 Members and 1 Guest are viewing this topic.

The Prophet

  • Global Moderator
  • Senior Member
  • *****
  • Posts: 364
  • Country: england
  • Financial & Economics commentator
Why private pensions are a rip-off
« on: July 09, 2011, 11:55:31 am »
The best thing about a private pension is the tax relief.  That is as good as it gets! 
The main pitfall is the charges levied by the industry. Most pension funds grew by just 4% over the last 30 years but the average fees are 2%-3%. So over half the gain is being swallowed up and lost by charges.

80% of private sector workers have less than £30,000 in their pension pot. Around 90% of all private sector workers would be better off NOT saving in a pension at all as they would then get pension credits and other means-tested benefits.