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Pension advice
McCabe-Thiele (Ted):
Low cost endowment policies were promoted vary hard back in the early 1980's especially by the Banks and Building Societies, as an incentive the staff received bonuses if they sold the low cost endowment policies.
When we moved house in 1984 we stayed with the Halifax for our mortgage, when we went in to sign the new documents they had drawn up endowment documentation. I was not convinced about the benefits they claimed I would receive. It just seemed too good to be true plus it was a little rigid in some aspects.
The Mortgage adviser rudely stormed out of the office as she had to produce new documents for us to sign for a normal mortgage repayment contract. Whilst out of the room my wife asked me if I was sure we were making the right choice.
I said we were as we could pay more off more sooner with a normal repayment mortgage by either increasing the payments or not taking a fall in payments. As interest rates rose during the Thatcher years we managed okay so when the interest rates dropped we stayed on the slightly higher payments. We paid off our 27 year mortgage almost three years early.
I know many folk were caught out by the scandal leaving them with a mortgage after retirement or having to work longer.
Johnny4428:
Agree Ted! We were also being encouraged to take out an endowment mortgage but at the time financial restraints meant we could not afford it, so stuck with repayment mortgage. I’m not sure if anyone received the rewards of the endowment mortgage that they were led to believe they should. I know a lot of people didn’t even have enough to pay off their mortgage let alone the lump sum of money at the end of term. There’s definately a compensation claim for bad advice.
Bryanj:
I pissed off the bank when i refused mortage protection insurance, i was single and told them if i died they had the deeds anyway and i wouldnt be there to care!
andy120t:
Coming back to the original post, pensions are a complex area both in terms of how best to save and also what to do when it comes to taking money out. Regulation in the financial services industry has moved on a huge amount since the eighties, so I would definitely say speak to a professional about this, even if it's just to learn from them and you ultimately make your own decisions.
Most firms will offer an initial hours discussion for free so that they can understand your requirements - and this should be no obligation - so book in with a few local companies and go and meet them and find someone you feel comfortable talking to. This will also give you a number of sessions to understand the industry jargon ( which they shouldn't use to much!), but don't ever feel concerned about getting them to explain things in plain English and until you understand it. Search for IFA's and pension advisers. You could also try some online ones...potentially cheaper but may feel more remote.
Look at fee structures too on their websites...some charge a %, which I feel is an ongoing charge against you, but some will charge a set fee to discuss, and set-up a financial plan and this feels, to me at least, a lot fairer.
Also, look at Government/ charity resources online beforehand - Citizens Advice has pension info to assist before you meet any advisers, so a good start point, so you hopefully understand a bit before you start talking.
Laverda Dave:
The Martin Lewis website at
https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.moneysavingexpert.com/pensions/&ved=2ahUKEwjDsNeYjPSHAxVRX0EAHc_gN34QFnoECCEQAQ&usg=AOvVaw1xFEVVfWHLgZg33czoORUT
Has some really good basic advice about seting up a private pension plan and it is explained in plain, simple english. Being Martin Lewis you know it's going to be factual and honest. Maybe worth an initial read to learn the basics before setting off to see a local providier.
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