CliveH Posted April 23, 2014 Share Posted April 23, 2014 As most employers will know, Auto-enrolment is upon us and it is becoming clear that the original Auto-enrolment scheme does not sit well with the Government default fund choice - NEST Now the original idea of NEST (National Employment Savings Trust) is that it should be a simple low cost Non-Advice option. But we were all more than a little surprised to see that the contribution charge for Nest was a whopping 1.8% pa. This is high for a non advice option - our charges - as an example are never more than 1.75% pa - and that is for our highest service level. So you can see the point I am making - why on earth would a government option think 1.8% and no advice be attractive in the market place? And now, in the budget the chancellor also announced free, impartial, face-to-face guidance would be guaranteed for all at the point of retirement. And now the head of NEST, points out that it will have to be paid for by the pension schemes, which could choose to pass that cost on to members in higher charges, even if it is ‘free at the point of delivery for the recipient’. He said Nest would probably have to pay for advice through members’ charges. If so, the head of NEST questions whether ‘free advice’ is something Nest should provide at all. It has no shareholders and, apart from its 1.8% contribution charge, its only funding comes from the Department for Work and Pensions. If the loan is increased to fund advice, then members will be paying off that loan for longer through contribution charges, or charges will fund the advice directly. What a god almighty cock-up 8-) Link to comment Share on other sites More sharing options...
Colin Leake Posted April 23, 2014 Share Posted April 23, 2014 Just had a letter from Scottish Widdows telling me that they had made a cock up on my pension resulting in underpayment last year. Sent a cheque to make up the amount plus 8% interest. That's what I call a result. P.S. Don't tell my wife. Link to comment Share on other sites More sharing options...
Guest pelmetman Posted April 23, 2014 Share Posted April 23, 2014 Colin Leake - 2014-04-23 7:35 PM Just had a letter from Scottish Widdows telling me that they had made a cock up on my pension resulting in underpayment last year. Sent a cheque to make up the amount plus 8% interest. That's what I call a result. P.S. Don't tell my wife.[/quote Well you did better than my phone call to the Pru *-)..............As usual I have been stitched up like a kipper 8-).......................But fortunately I don't care..............as I'd rather spend my money whilst I'm alive than when dead ;-) Link to comment Share on other sites More sharing options...
CliveH Posted April 24, 2014 Author Share Posted April 24, 2014 Don't stop there Dave if you wish to consider the changes now possible. My advice is to write to the Pru stating you do not accept what was said on the phone (I do not know what you were told but if it is anything like the total b0ll0x we regularly get told by the call centre staff of most Life Offices - then i suspect the person you spoke to has no idea and was not fully briefed on the options the recent rule changes give you. Many providers - including the Pru - do not want these changes. Little surprise then that their initial response was to try to fob you off. A simple letter stating that you understand that the rules have changed - you do not think the person you spoke to was "up to speed" on these changes and so you wish to register your rights under the new rules for a review of what you were sold once these changes become law. Link to comment Share on other sites More sharing options...
CliveH Posted April 24, 2014 Author Share Posted April 24, 2014 Colin Leake - 2014-04-23 7:35 PM Just had a letter from Scottish Widdows telling me that they had made a cock up on my pension resulting in underpayment last year. Sent a cheque to make up the amount plus 8% interest. That's what I call a result. P.S. Don't tell my wife. Colin - Scot Wid used to be one of the best providers - but since it is now part of Lloyds - in my professional opinion - I consider it to be one of the worst. "Beware a gift horse" was my immediate reaction on reading your post. They may be acting entirely appropriately - on the other hand - what you have been given is the absolute minimum compensation for a mistake. You could be being fobbed off. If you want to PM me the details - I do not mind having a look at it. Link to comment Share on other sites More sharing options...
Colin Leake Posted April 24, 2014 Share Posted April 24, 2014 CliveH - 2014-04-24 7:05 AM Colin Leake - 2014-04-23 7:35 PM Just had a letter from Scottish Widdows telling me that they had made a cock up on my pension resulting in underpayment last year. Sent a cheque to make up the amount plus 8% interest. That's what I call a result. P.S. Don't tell my wife. Colin - Scot Wid used to be one of the best providers - but since it is now part of Lloyds - in my professional opinion - I consider it to be one of the worst. "Beware a gift horse" was my immediate reaction on reading your post. They may be acting entirely appropriately - on the other hand - what you have been given is the absolute minimum compensation for a mistake. You could be being fobbed off. If you want to PM me the details - I do not mind having a look at it. We have a simple draw down pension with them amongst other pensions with other providers. They are every cost effective with low charges and the fund has performed very well. My son is Senior partner in a firm of actuaries. He specialises in large company schemes for a number of the top UK companies but he has appointed an advisor from his company who specialise if individual pension schemes to look after my and ultimately his interests. Being diabetic I am a member of a couple of schemes that give advantageous annuities based on medical conditions. Mind you I'm planning to cheat and live to a ripe old age. I did give the impression that they made the cock up but in fact it was caused by them being provided with a wrong tax code by HMRC. Link to comment Share on other sites More sharing options...
CliveH Posted April 24, 2014 Author Share Posted April 24, 2014 Good on you! Cheat the grim reaper for as long as poss!! You clearly have things well in hand. For once it is nice to hear it was an HMRC mistake - shame in this instance that it was Scot Wid that had to pick up the tab. :-S Link to comment Share on other sites More sharing options...
Colin Leake Posted April 25, 2014 Share Posted April 25, 2014 My son tells me that it's just the way it works and that the new code will enable SW th recoup the money from HM . Link to comment Share on other sites More sharing options...
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