Many thousands of pensioners ripped off

[super jumbe]

Britain's biggest insurers were today accused of ripping off hundreds of thousands of pensioners who take the "biggest gamble of their life" buying an annuity.

A Government advisor said many people would have to live until they are 90 before their annuity becomes good value, and that the policies were so dangerous they should carry a risk warning.

Ros Altmann, a pensions expert, said thousands of annuity holders had no idea their husband or wife may not get their money if they die because their policy may not cover a spouse or partner. And she urged regulators to "wake up" and address the "current market failures."

She blasted: "Far from being a low risk purchase, buying an annuity could be the biggest gamble you ever take in your life.

An annuity purchase is a long-term investment decision, which risks losing much or all of your money, yet people are given no risk warnings about the dangers of buying.

"If you die soon after you buy a standard, single-life annuity, your pension fund will go to the insurance company, not your loved one."

http://uk.finance.yahoo.com/news/annuities-dubbed-biggest-gamble-peoples-091338272.html

[super jumbe]

What is an Annuity?

To put it in its simplest terms, an annuity works similarly to an insurance policy, but in reverse. You use the money saved over the years into your pension pot as a lump sum, and in exchange for this lump sum you receive a regular income paid each month until you die.

Welcome to the World of Private Pensions, you should have read the small print.

[ACDC]

Unfortunately it's easy to rip off old people, even if they read the small print, they don't really understand what they sign themselves up for...

[nara]

Unfortunately it's easy to rip off old people, even if they read the small print, they don't really understand what they sign themselves up for...

That's a kinda ageist statement.

[ontherack]

people of all ages get ripped off. To many people are too trusting of companies and their reps and believe the lies they often tell and rarely read the small print. many people fall victim to legal scams and nobody cares especially the goverment. The legal bodies and laws put in place to protect public are a shambles at best. Good luck to you all...

[super jumbe]

That's a kinda ageist statement.

I totally agree with ACDC coments.

Some people with attitude like yours do convince insurance company to rip of old people, instead people should be favouring the old people and to condemn the insurance company that this sort of fraud documents taking money from old pensioners is not acceptable.

[Meat-Head]

FFS have you EVER been into Meat-City during daytime weekday? or even Tesco.com?

FULL of old people, in the way, smelling bad, taking their time.

Should be banned during working hours, there retired they have all the time in the world.

[nara]

Some people with attitude like yours do convince insurance company to rip of old people.

Do you understand even half of what people post here? Make an effort ffs!

[bobwill]

Thats rich from a government adviser first gordon brown stole most of wealth of private pensions so there was sweet FA
in them to buy an annuity .Then labour followed by libcons gave the banks money in quantitatiive easing which hit the annuity rates
Then libcons set up the government bank lending scheme which give the banks more money which they will no lend out
and banks are awash with cheap cash ,so this hit annuity rates again
But the pension providers with high charges and like banks and governments they are also robbing pensioners
When I took my annuity out I had a guaranteed payout (worth about a quarter to that promised when I started pension payments)
aviva wanted to get out of paying when I asked about putting wife on as well they made it worthless so I had to have it just for me .

PS anybody who have not got a pension isnt it time you got one so banks governments and pension providers can rob you
when you when you get old

[super jumbe]

I can not understand why people have to go for private pension in the first place? We paid our NI all our working life and we are entitled for govt pension when we come to retirement age full stop.

Its like having a life insurance they pays cash sum if you die, how many old people have not got paid cash sum during the policy an excuse of unimaginable.

[smirnoff_rules]

im self employed and there isnt a pension that would pay anything more than u paid in , its a ****ing rip off ,, just bank it its the only choice l have and the state one wouldnt pay my vodka bill every week

[alec]

Britain's biggest insurers were today accused of ripping off hundreds of thousands of pensioners who take the "biggest gamble of their life" buying an annuity.

A Government advisor said many people would have to live until they are 90 before their annuity becomes good value, and that the policies were so dangerous they should carry a risk warning.

Ros Altmann, a pensions expert, said thousands of annuity holders had no idea their husband or wife may not get their money if they die because their policy may not cover a spouse or partner. And she urged regulators to "wake up" and address the "current market failures."

She blasted: "Far from being a low risk purchase, buying an annuity could be the biggest gamble you ever take in your life.

An annuity purchase is a long-term investment decision, which risks losing much or all of your money, yet people are given no risk warnings about the dangers of buying.

"If you die soon after you buy a standard, single-life annuity, your pension fund will go to the insurance company, not your loved one."

http://uk.finance.yahoo.com/news/annuities-dubbed-biggest-gamble-peoples-091338272.html

The Government are the biggest scammers: they devalue the currency and flood the country with QE, and low interest rate. The national insurance paid in is spent as they receive it, and with borrowing around 2 BILLION pounds a week; they are on course to say sometime in the future we are bankrupt, and don't worry about the pension it is all gone.

[Snowy79]

I think people's lifestyles make it easier for the government not to pay out. Look at the muppets that still smoke and get pissed regularly whilst stuffing their face with processed food. They'll be dead before they get a pension. The only problem is the buggers are costing us money on medical treatment instead of just dropping dead suddenly

[ifred]

im self employed and there isnt a pension that would pay anything more than u paid in , its a ****ing rip off ,, just bank it its the only choice l have and the state one wouldnt pay my vodka bill every week

Surely its only commies that drink vodka

Rather than paying cash into a bank for a pension, might be better save the vodka -for an annuity pour vodka through a banks letter box -at least when you retire your be nice and toastie from the result

[GastonJ]

Sorry, but it is the government that "force" people to buy anuities and has been for a very long time, but recently fiddle with to allow some not to:

Until now, retirees have been forced to use their pot to buy an annuity ***8211; the insurance product that turns pension savings into a regular income stream ***8211; by the age of 77.
This will change when new rules laid out today come into play next April.
Millions of retired people will then be able to keep their nest eggs invested and draw on them as they choose.
It will also be easier for elderly people to leave their unused life savings to loved ones. In the past, anything left over was swallowed up by an insurance company when a pensioner died.
However, the Government is insisting that pensioners have an income of at least ?20,000 a year before allowing them to opt out of annuities altogether.
Critics say this 'minimum income requirement' means the law change will benefit only the wealthy.

Pensioners no longer forced to buy annuities | This is Money

So sorry it is the government who are making sure insurance companies rip off pensioners, the pensioners don't buy them through choice, they have to.

A Government advisor said many people would have to live until they are 90 before their annuity becomes good value, and that the policies were so dangerous they should carry a risk warning.

She's knows it's the government who forces them to buy them.