Showing posts with label banks fleecing citizens. Show all posts
Showing posts with label banks fleecing citizens. Show all posts
Wednesday, May 25, 2011
Monday, December 6, 2010
Hidden fees cut pension payouts by 75pc
Savers are losing up to three quarters of their pensions in little-known fees charged by the investment funds that manage their money, a report by senior pension experts warns.
Holly Watt
Telegraph
Private pensions in Britain pay out on average half as much retirement income as equivalent schemes in Europe, the report says, with hidden costs blighting the retirement plans of millions.
The report, by David Pitt-Watson, one of the country's leading pension fund managers, and a team from the Royal Society for the Encouragement of Arts, Manufactures and Commerce, warns the Government that the system is in need of urgent reform to bring these costs down.
Earlier this year, The Daily Telegraph disclosed that a range of little-known fees and levies typically wiped more than £100,000 off the value of a middle-class worker's private pension.
Mr Pitt-Watson, the boss of Hermes, which manages the BT pension scheme, has written to Steve Webb, the Pensions Minister, to set out his concerns.
His three-year study highlights how British savers suffer in comparison with their European counterparts because of the fees charged by pension funds.
While the annual levy can appear small, its effect after decades of saving is substantial, the report warns.
This is because the fee is calculated annually as a percentage of the total amount in the pension fund. Each year, therefore, the amount levied increases.
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10 Ways We're Being Fleeced By Banks
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Telegraph
Private pensions in Britain pay out on average half as much retirement income as equivalent schemes in Europe, the report says, with hidden costs blighting the retirement plans of millions.
The report, by David Pitt-Watson, one of the country's leading pension fund managers, and a team from the Royal Society for the Encouragement of Arts, Manufactures and Commerce, warns the Government that the system is in need of urgent reform to bring these costs down.
Earlier this year, The Daily Telegraph disclosed that a range of little-known fees and levies typically wiped more than £100,000 off the value of a middle-class worker's private pension.
Mr Pitt-Watson, the boss of Hermes, which manages the BT pension scheme, has written to Steve Webb, the Pensions Minister, to set out his concerns.
His three-year study highlights how British savers suffer in comparison with their European counterparts because of the fees charged by pension funds.
While the annual levy can appear small, its effect after decades of saving is substantial, the report warns.
This is because the fee is calculated annually as a percentage of the total amount in the pension fund. Each year, therefore, the amount levied increases.
Read Full Article
RELATED ARTICLE:
10 Ways We're Being Fleeced By Banks
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Live Superfoods
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Monday, November 29, 2010
Following Hungary And Ireland, France Is Next To Seize Pension Funds
 |
| Bank Looting in Progress |
Zero Hedge
If the recent Hungarian “appropriation” of pension funds, and today’s laughable Irish bailout courtesy of domestic pension funds sourcing 20% of the “new” money was not enough to convince the world just how bankrupt the entire European experiment has become, enter France.Financial News explains how France has “seized” €36 billion worth of pension assets: “Asset managers will have the chance to get billions of euros in mandates in the next few months for the €36bn Fonds de Réserve pour les Retraites (FRR), the French reserve pension fund, after the French parliament last week passed a law to use its assets to pay off the debts of France’s welfare system. The assets have been transferred into the state’s social debt sinking fund Cades. The FRR will continue to control the assets, but as a third-party manager on behalf of Cades.” FN condemns the action as follows: “The move reflects a willingness by governments to use long-term assets to fill short-term deficits, including Ireland’s announcement last week that it would use the country’s €24bn National Pensions Reserve Fund “to support the exchequer’s funding programme” and Hungary’s bid to claw $15bn of private pension funds back to the state system.” In other words, with the ECB still unwilling to go into full fiat printing overdrive mode, insolvent governments, France most certainly included, are resorting to whatever piggybanks they can find. Hopefully this is not a harbinger of what Tim Geithner plans to do with the trillions in various 401(k) funds on this side of the Atlantic.
More from FN on how first France, and soon every other socalized pension regime, will continue to plunder a nation’s life saving to fund short-term deficits:
The decision has prompted a radical restructuring of the FRR’s investments. The new strategic investment plan, which will be released in the new year, will see a rapid reduction in its 40% allocation to equities and a shift to cash and short-term government bonds, according to a source close to the situation.Read Full Article
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Banksters Coming for Your Retirement Next
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