Saving for your pension? – Don’t bother!

If you’re dutifully putting money into your pension fund every month, you might be better off using the money to wallpaper your home or as toilet paper because most of your pension savings will end up in multi-millionaire pension fund managers’ pockets. Every hour those who sold us our pensions and who manage our money take £10m of our savings in fees, commissions and other charges – over £80m every working day. That’s a huge amount of our money going to a rather small group of (very rich) people. Most of us will pay over three quarters of any growth in our savings to pension salespeople and fund managers. This huge amount of money being taken from us means that 9 out of 10 people are wasting their time saving – with less than £50,000 in their pension funds, they lose more in pension credits and other benefits than they get from their pension savings. As for the remaining 1 in 10, with annuity rates at 3%, they would need about £500,000 just to get a modest £15,000 a year pension.

But don’t worry about our MPs. They have the most generous pension scheme in Britain. You or I would have to put over £56,000 a year into our pension funds to get the same pension as an MP.