Capita!

[matrawr]

So I've been in a workplace pension with my employer for a couple years now, however I've found out some less than favourable news recently about the company that is in charge of my pension? This also coincides with a pension consultation due to end at the end of September. I'm currently with Capita with my pension but if I wish I could go with Aviva.

Any help much appreciated!

[Pete]

Take a serious look at opening up a SIPP where you are in 100% control and can avoid the rip-off fees charged by so called experts.
If a fund grows at 5% per annum and you compound this over say 20 years you will be amazed at the exponential growth in value.
If however the sharks take 2 or 3% in fees ( for squat ! ) leaving you with only 2% annual compound growth the difference can be huge.
Don't jump into pensions advice feet first. Gather all your facts from multiple sources.
Always be checking what you get from your "experts" as at the end of the day their interest in you is fees and their bonuses.
I share this information freely because I have experienced every aspect of pensions both good and bad.

[Pipers]

First stop!  Think!  Check how much the Tax man is is giving you in benefits by topping up your pension Via your employer! 

In general Pensions are a con if you are from a family where your life expectancy is below 70 .The money goes straight into the pension company pocket.

If your life expectancy is higher than 70 then you will get f-cked over at the back end too, your pension company will sell you an anunity or you could shop around to get robbed!  Then every year the lucky company gets to steal money off you just to arrange your payments.  You will then have to take the letter to the DWP and show them the letter they then deduct 75% out of your state as on pension that means if you were a lazy or spend thift you would get  nearly the same amount as the council will have there go at you then for council tax!  I know this to be true as it is happening now to a family member who worked hard but was on a lower- average wage. 

 

[matrawr]

Thanks for the info guys reckon I should speak to an accountant and IFA both of which knew my grandad

[Martlet]

2 hours ago, Pipers said:

...You will then have to take the letter to the DWP and show them the letter they then deduct 75% out of your state as on pension that means if you were a lazy or spend thift you would get  nearly the same amount as the council will have there go at you then for council tax!  I know this to be true as it is happening now to a family member who worked hard but was on a lower- average wage. 

You sure you have that right?  Not heard of anything like this, only 75% related to pensions I can find is that amount is taxable. 

@matrawrfind out what your employer is paying in, if you go elsewhere you will no longer get the employer contribution.  I don't believe Capita do pensions they simply provide a workplace pension service for companies.  You might want to put additional money into another pension if you feel it will do better. 

[matrawr]

16 minutes ago, Martlet said:

You sure you have that right?  Not heard of anything like this, only 75% related to pensions I can find is that amount is taxable. 

@matrawrfind out what your employer is paying in, if you go elsewhere you will no longer get the employer contribution.  I don't believe Capita do pensions they simply provide a workplace pension service for companies.  You might want to put additional money into another pension if you feel it will do better. 

Capita I believe provide the admin side of it however I'm in the process of trying to find out who actually holds the funds at the moment my employer is paying in 16% but the consultation is to save them money they are seeking to put in less and invest the pension pot rather than providing a guaranteed pension pot at retirement.

[Martlet]

 16% you are very lucky.  You should get a pension statement every year, search email and company intranets. There should also be some pension trustees and/or employee representatives group, or even a union, who will be all over this.  So find out who those people are and what they are saying.  If they are switching from final salary/defined benefit to defined contribution, it will almost certainly have to keep people on the current scheme unless they opt out.  and people rarely do that.

( And then the business goes bust because they can afford the sustain the pension.  )

[matrawr]

9 minutes ago, Martlet said:

 16% you are very lucky.  You should get a pension statement every year, search email and company intranets. There should also be some pension trustees and/or employee representatives group, or even a union, who will be all over this.  So find out who those people are and what they are saying.  If they are switching from final salary/defined benefit to defined contribution, it will almost certainly have to keep people on the current scheme unless they opt out.  and people rarely do that.

( And then the business goes bust because they can afford the sustain the pension.  )

Thanks so much for your help much appreciated

[Pipers]

12 hours ago, Martlet said:

You sure you have that right?  Not heard of anything like this, only 75% related to pensions I can find is that amount is taxable. 

@matrawrf

I'll make myself clear here, lots of people do not have pensions they instead had a better life spent there money on homes + furnished+ holidays +cars.  When they get older and infirm they cannot work any more, they go down to the DWP and get there pension from the state which they have paid for through PAYG (though some should not get this).  The problem is the state pension is not enough and they need more, so the pensioner now claims pension benefits.  Now to the person who saves with a work or private pension or they just saved, they forego some nice holidays,  drive around in an slightly older car keeping it going for a few years longer. They live in the same standard of house or even better though it is not as well furnished,  they are very prudent with there money.  They look forward to the time when they can retire and take up there hobbies full time or get a part time  job in the field that there interested/ hobby is in 1 day a week.   They get there pension but after all the years of paying in the pension company has really under performed then they have buy an annuity gets charged, then every year gets charged, any way it's not all bad news because he/she can still get the state pension on top this may change for young people.  So goes down to the DWP shows the DWP the work pension etc, anyway it turns out if they had not saved a penny they would of been able to get benefits but because they had and they had a pension it means they are 15p in the £ better off than someone who did nothing and spent all there money having a good time!    They are angry because people in the same street drive nice cars live in very nice houses etc etc are on pension benefits but to look at them they all look middle class.

 

 

 

 

 

 

[Goldhooked]

2 hours ago, Pipers said:

I'll make myself clear here, lots of people do not have pensions they instead had a better life spent there money on homes + furnished+ holidays +cars.  When they get older and infirm they cannot work any more, they go down to the DWP and get there pension from the state which they have paid for through PAYG (though some should not get this).  The problem is the state pension is not enough and they need more, so the pensioner now claims pension benefits.  Now to the person who saves with a work or private pension or they just saved, they forego some nice holidays,  drive around in an slightly older car keeping it going for a few years longer. They live in the same standard of house or even better though it is not as well furnished,  they are very prudent with there money.  They look forward to the time when they can retire and take up there hobbies full time or get a part time  job in the field that there interested/ hobby is in 1 day a week.   They get there pension but after all the years of paying in the pension company has really under performed then they have buy an annuity gets charged, then every year gets charged, any way it's not all bad news because he/she can still get the state pension on top this may change for young people.  So goes down to the DWP shows the DWP the work pension etc, anyway it turns out if they had not saved a penny they would of been able to get benefits but because they had and they had a pension it means they are 15p in the £ better off than someone who did nothing and spent all there money having a good time!    They are angry because people in the same street drive nice cars live in very nice houses etc etc are on pension benefits but to look at them they all look middle class.

 

 

 

 

 

 

I will be far better off in retirement than anyone on benefits in retirement.  By the time I reach state pension there probably won’t be one and benefits could be worse than they are now.  There is absolutely no way in the world I want to be relying on the state to look after me when I’m old and wrinkly!

[Pipers]

7 hours ago, Goldhooked said:

I will be far better off in retirement than anyone on benefits in retirement.  By the time I reach state pension there probably won’t be one and benefits could be worse than they are now.  There is absolutely no way in the world I want to be relying on the state to look after me when I’m old and wrinkly!

Good for you,. It's a lesson for us all though if you save you need a lot!

[MickD]

My state pension age is 67 and I really don't want to be doing what I do now until then (or any job for that matter).  I pay into AVCs which are linked to my current pension scheme every month.  There are no guarantees but I would expect to at least get my tax back and it should let me retire at 60 with the equivalent of the state pension until I hit 67, on top of my other pensions.  I certainly wouldn't want to have to rely on the state pension and pension pots have been eroded recently with the move from RPI to CPi and from final salary to CARE, not to mention linking schemes to revised state pension age.

[Goldhooked]

55 minutes ago, Pipers said:

Good for you,. It's a lesson for us all though if you save you need a lot!

It’s not that difficult to be better off than on benefits.  Especially in this day and age where employers are required to provide workplace pensions to qualifying employees.

Anyone who is relying on a future state pension only to live comfortably are mad in my opinion.

[matrawr]

Thanks all for your input will take into consideration.

[dutchman]

What ever you decide ,the one bit of advice i would give you is move it away from Capita ,they are awful i had my retirement pension with them which i took as a lump sum last year it took months and months of emails and letters ,and sending the same paperwork  over and over again ,each call to them i spoke with a different person who did not have a clue, no wonder their nickname is Crapita !