There’s no place for a crystal ball in pensions.
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Recently a very sad case came to light which is a salutary tale for all people of working age and anyone thinking about a retirement pension.
There was a man who had worked all his years in the rail industry. He started out there as a young man and he was to stay there all his working life. Fairly early on in his working career the rail company he worked with was amalgamated with two others. At this point he was given a choice regarding his pension. He could opt for a Final-Salary Scheme or a Career Average Scheme; there was no financial advice to be had for anyone at this time. Basically the working man relied on help from his trade union. He was, however told that the Career Average Scheme provided a moderately higher percentage pension. So unsurprisingly he decided on the Career Average Scheme. He then worked out a long career, where he was lucky enough to remain in continuous employment, but unfortunately there were few opportunities for promotion until the final few years of his employment.
When he came to retire the sad fact became clear that his career average earnings were not sufficient to provide him with a healthy pension. Yes he qualified for a pension but it fell far short of what he had been expecting all those years ago. If he had opted for the Final-Salary Scheme it would have been a very different story as his late promotions towards the end of his working life would have impacted significantly on the amount of his pension.
Who could have foretold this all these years ago? Should we have to rely on a crystal ball to tell us what the financial situation will be when we retire? We are living in very troubled financial times; this is a fact that we cannot fail to realise. It would be a brave man or woman who would predict one year ahead never mind twenty, thirty or more.
The moral of this story? It is never too late to seek expert advice. Do not rely on historical information when you are thinking about your pension. There are now experts who are there to advise you, before it is too late.
So ditch the Mystic Meg approach and seek sound financial advice. |
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Author Resource:-
For independent annuity advice go to rightannuity.co.uk and get the best annuity rates.
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By :
Abbey smith
Submitted
2012-02-09 18:04:11 |
Article From Article Mayhem
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