15/09/2014 Inside Out North East and Cumbria


15/09/2014

Similar Content

Browse content similar to 15/09/2014. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Have you stashed enough cash or will you be left short when you retire?

:00:00.:00:12.

I am working. I need the extra money. I don't think what pdople

:00:13.:00:19.

realise living on a pension. We jump aboard the pension

:00:20.:00:21.

express to find out why the wheels Who has got a pension? OK, who

:00:22.:00:24.

hasn't got a pension? And even if you have saved tp,

:00:25.:00:33.

could the scammers be There are numerous people who have

:00:34.:00:44.

said to me that they sometiles feel the only way out of this misery is

:00:45.:00:49.

to commit suicide. That is no escape.

:00:50.:00:50.

This is Inside Out and I'm Chris Jackson.

:00:51.:00:59.

So what are you planning for retirement?

:01:00.:01:01.

Long leisurely walks in the countryside, playing gardening,

:01:02.:01:04.

But what if you can't afford to stop working?

:01:05.:01:10.

As I've discovered there ard a growing number of people here who

:01:11.:01:13.

The country's workforce is getting older.

:01:14.:01:31.

For many people, this is not a choice. They have two work longer. I

:01:32.:01:38.

can't retire because I can't afford to. I am just able to survive now.

:01:39.:01:41.

With fewer people saving, the number of pensioners having to

:01:42.:01:44.

I need to have a little bit extra money. My pension is not enough

:01:45.:01:56.

The people of the north east are the worst in the country whdn it

:01:57.:01:59.

In fact the latest government stats show that nearly a third

:02:00.:02:04.

of households here don't have any private pension whatsoever.

:02:05.:02:06.

But if you thought you could just retire and rely on the statd,

:02:07.:02:10.

Can we help you save on your energy bills?

:02:11.:02:23.

Most of the staff members here are in their early 20s.

:02:24.:02:35.

One notable exception is Charles West.

:02:36.:02:40.

What is your date of birth, please? 1971. What are you doing here?

:02:41.:03:07.

Working. I need to. I need the extra money. The pension isn't enough I

:03:08.:03:12.

don't think they realise wh`t it is like to try to live on a pension.

:03:13.:03:14.

So to supplement what he receives from the state,

:03:15.:03:18.

Charles works the phones fotr hours a day for an energy company.

:03:19.:03:23.

There is nobody cheaper than we are. Why didn't you save when yot were

:03:24.:03:32.

younger? I was made redundant. If a firm takes over your firm, they sack

:03:33.:03:39.

their laps and put their own in place. So you weren't able to save

:03:40.:03:47.

in your lifetime? No, not at all. I'm losing my voice again. Ht is all

:03:48.:03:55.

the talking you do. What it is like being surrounded by these young

:03:56.:04:00.

people. Great. They keep me young. Save that as much as you can. Do

:04:01.:04:06.

they listen to you? They ard too young, they don't care. Good start?

:04:07.:04:23.

Good. We do get a lot of older customers bringing in. It is good

:04:24.:04:27.

that he can use his stories to get the sale. The only requiremdnt he

:04:28.:04:38.

has at times is his technology. Put in your password. Happy days,

:04:39.:04:44.

sorted. You don't find it odd that he is he a? I did at the st`rt. But

:04:45.:04:51.

he grows on you. He is like one of the lads. Another sale. Another

:04:52.:05:06.

sale. Thank you. Not bad at all I am very pleased. You are finished

:05:07.:05:10.

now. I have been finished four years! Do you think you will have to

:05:11.:05:17.

keep on working? Yes. How c`n I live otherwise? They are going to carry

:05:18.:05:31.

you out in a box? Yes. Charles isn't as unusual as you think.

:05:32.:05:34.

The number of over`65s still working h`s more

:05:35.:05:36.

There are now over one million working pensioners.

:05:37.:05:43.

So at the time of your life when you thought you might be out watering

:05:44.:05:47.

the garden, you might be sttck in the office at the water cooler.

:05:48.:05:55.

It is one of the greatest achievements of mankind that we are

:05:56.:06:01.

living longer. The critical issue is we need to plan for this. This is an

:06:02.:06:06.

education issue in schools to help people plan for later life. Invest

:06:07.:06:13.

in both income and health bdcause the prevention of AIDS`related

:06:14.:06:16.

condition such as diabetes, stroke, heart disease is critical. `` of

:06:17.:06:22.

health related conditions. Staying fit is vital

:06:23.:06:25.

for 70`year`old Pat Thompson. Seven o'clock in the morning and I

:06:26.:06:36.

am about to start by paper round. I hope it doesn't rain.

:06:37.:06:38.

Pat retired three years ago with just a small private pension.

:06:39.:06:44.

She's since had to take on two part time jobs.

:06:45.:06:51.

And she depends on her bike for both of them.

:06:52.:06:57.

I am extremely lucky my health is good. The fact that I have had a

:06:58.:07:06.

head and to knee replacements has helped enormously. `` hip. Hf your

:07:07.:07:16.

health happens been improved like that, you might thus be abld to do

:07:17.:07:22.

the work you need? I wouldn't, no. I you keeping your head above water?

:07:23.:07:28.

Just about. So these jobs aren't about phone? No. It is that's close

:07:29.:07:40.

to the bone? Deserts will you? Sometimes. But now I have t`ken

:07:41.:07:44.

steps to improve things, I `m not so scared.

:07:45.:07:45.

Many more pensioners will bd following in Pat's tracks,

:07:46.:07:47.

We need more in place to have good pension schemes. We have sedn

:07:48.:07:57.

stagnation in wages and for many people in the north`east, the

:07:58.:08:03.

priority is how they tackle their cost of living. How they get through

:08:04.:08:07.

the week, how they get throtgh the mud, how the feed and clothd their

:08:08.:08:11.

family. For many workers we speak to, paying into a pension isn't

:08:12.:08:14.

absolute luxury for them. For Charles, another day of work

:08:15.:08:24.

at the call centre is over. Just a small loaf I get and there

:08:25.:08:44.

aren't any. I am going to h`ve those, they are produced. How does

:08:45.:08:49.

the maths add up for you? I just about get through. I get a ` week.

:08:50.:09:05.

`` ?169 week. How much goes out Things like gas and Electric, ? 09 a

:09:06.:09:11.

month. I have got about 60 or ? 0 a week. That is not a lot. No. How

:09:12.:09:19.

would you cope with that? Jtst take care, don't spend a lot. Anxthing

:09:20.:09:28.

you miss you would like to get? Not really, no. I don't think so.

:09:29.:09:35.

Luxuries `` are there any ltxuries you can afford? Not really, apart

:09:36.:09:47.

from the odd beer. That's md, thank you ladies. I can't buy you the kind

:09:48.:09:58.

of clothes I'd like to wear. I like to wear nice clothes. I do find I

:09:59.:10:03.

have to go into charity shops and have a look round and see if there

:10:04.:10:07.

is anything there for me. If it is a special occasion, I do panic quite a

:10:08.:10:11.

lot because I think what can I possibly where? That is ?7.25. Keep

:10:12.:10:22.

on smiling. I you leading the life you hoped you would lead now? No, I

:10:23.:10:28.

did think it'd be nice to h`ve a relaxed retirement where I could sit

:10:29.:10:37.

and enjoy the view. It has been a pleasure talking to you. I wish

:10:38.:10:42.

everybody was exactly like xou. Due you wish you had set money `side?

:10:43.:10:53.

Yes, yes they do. But I didn't so I am stuck with it.

:10:54.:10:55.

Charles and Pat both wish they'd been able to save earlier in life.

:10:56.:10:58.

But a survey for BBC Inside Out has reve`led that

:10:59.:11:01.

almost one in five people don't trust pensions companies and almost

:11:02.:11:04.

as many are looking for othdr ways to save for their old age,

:11:05.:11:07.

Jon Cuthill has been on a road trip to investigate.

:11:08.:11:23.

Previous generations retired at 60, got on with the gardening and were

:11:24.:11:27.

But with life expectancy continuing to rise, even if we retire later,

:11:28.:11:34.

These days most of Britain's workers don't have a pension sorted,

:11:35.:11:41.

which could leave us relying entirely on the state or like our

:11:42.:11:45.

65`year`old bus and its 70`xear`old driver Mervyn, still working.

:11:46.:11:51.

I enjoy it and I'm part of the business.

:11:52.:11:53.

It's a nice job, you meet nice people so while I can,

:11:54.:11:57.

I did invest into a pension but it went down the pan.

:11:58.:12:05.

And where better to meet th`n the Pensioners Pub.

:12:06.:12:10.

Half of our passengers on our 1949 Bedford bus are retired.

:12:11.:12:14.

The other half are pension refuseniks, a handful of Brhtain's

:12:15.:12:17.

13 million company employees who don't have a private pension.

:12:18.:12:22.

The government's rolling out a scheme to try to put that right.

:12:23.:12:26.

Auto enrolment makes it a legal requirement for companies to

:12:27.:12:32.

But if you earn less than ?10,000 you won't qualify.

:12:33.:12:38.

And anyone self`employed will have to sort themselves out.

:12:39.:12:42.

Here's a question for you, who has got a pension?

:12:43.:12:47.

Saving up for a pension, putting money aside each month just

:12:48.:12:57.

I'm Adam Fox, I'm 27 and I'm a senior colour technician.

:12:58.:13:03.

I get paid ?500 a month so there's no extra funds there

:13:04.:13:07.

I'm still doing my studying so it's not beneficial to md to pay

:13:08.:13:23.

Hilda's celebrating her 100th birthday today.

:13:24.:13:38.

These days you're 44 times lore likely to do the same than 60 years

:13:39.:13:42.

ago which has prompted the government to make the most sweeping

:13:43.:13:45.

Time to make room on the bus for Minister of State for Pdnsions

:13:46.:13:54.

Steve Webb, the man responshble for the radical reforms.

:13:55.:13:58.

The first thing we've got to do is get millions of people

:13:59.:14:00.

into a pension at all, parthcularly starting with young people, then

:14:01.:14:04.

8% of your salary, for most people, won't give you

:14:05.:14:09.

It's a start but we've got to build on that.

:14:10.:14:12.

Once you get a pension you're going to be nailed by chargds.

:14:13.:14:17.

In the past, too many people have been rhpped

:14:18.:14:21.

These new workplace pensions will be different because wd're

:14:22.:14:26.

From next April, more than 99 pence in a pound that

:14:27.:14:31.

you put into a pension will go into a pension not into charges

:14:32.:14:34.

So they will be the best value pensions, particularly becatse firms

:14:35.:14:37.

are putting money in as well, one of the best things you can invdst in.

:14:38.:14:40.

With a captive audience Steve Webb can't resist the opportunitx to

:14:41.:14:43.

Tell me about your pension experience?

:14:44.:14:48.

I do weddings and events, things like that and I don't think

:14:49.:14:55.

a return you get from a pension is going to be valid.

:14:56.:14:58.

Instead of a pension he's opted for a buy to let.

:14:59.:15:01.

My property's going to be rdnted out to students in Southampton.

:15:02.:15:06.

A really high student population there.

:15:07.:15:09.

It's right in the centre of town, a wicked location and it's `lways

:15:10.:15:13.

The people who think it is too hard, there is always something

:15:14.:15:32.

that'll make it easier for them search if they work for an dmployer

:15:33.:15:35.

it could be the employer cotld contribute into the pension scheme.

:15:36.:15:41.

Phone people like this and we can give people little hints to make it

:15:42.:15:46.

helpful. Don't rely on one service of income on retirement. Don't just

:15:47.:15:47.

rely on property. Things are different

:15:48.:16:03.

on the retired side of the bus where some have the sort of gold plated

:16:04.:16:06.

final salary schemes that anyone who's signing up to a pension now

:16:07.:16:09.

will probably never get. I don't see myself as being

:16:10.:16:12.

in any way privileged. I see myself as having workdd

:16:13.:16:14.

in public service for a rel`tively reasonable salary but the attraction

:16:15.:16:17.

of it was always the reason`ble My pension is pretty good rdally

:16:18.:16:20.

because it's index linked and I know from year to year exactly what

:16:21.:16:24.

it is I'm probably going to get Recently ?17,000 per household was

:16:25.:16:54.

quoted as the amount needed When you're young you don?t think

:16:55.:16:59.

about 40 years hence, do yot? It creeps up on you until you get

:17:00.:17:08.

to about 45, 50, and you thhnk. side of the bus, you're not alone,

:17:09.:18:28.

there's lots of people like you However, the main message h`s to be

:18:29.:18:31.

if you don't save for your later The state pension, certainlx

:18:32.:18:36.

for those who are relativelx young now, is changing dramatically

:18:37.:18:42.

and from 2016 inwards, younger people will know that when they get

:18:43.:18:48.

to retirement the state pension is Now if you think you'll be happy

:18:49.:18:54.

living on ?20 a day for the rest of your life when you've re`ched

:18:55.:19:02.

retirement, fine don't do anything. So it's all about being prepared,

:19:03.:19:11.

or is it? I was planning to start sorting out

:19:12.:19:13.

my pension at the age 40 whhch, after today,

:19:14.:19:17.

I've realised is far too late. The property is going well so I m

:19:18.:19:21.

happy with how things are going One thing's for certain thotgh,

:19:22.:19:25.

when it comes to keeping our heads above water when we retire we're all

:19:26.:19:30.

going to have to plan ahead. You'd like to think any mondy you do

:19:31.:19:48.

save towards a pension is s`fe, but we ve gone undercover to expose

:19:49.:19:52.

one of the biggest scams When we take out a pension,

:19:53.:19:55.

it's all about securing our future. But what happens if I want to

:19:56.:20:02.

cash mine in before I'm 55? Well according to some

:20:03.:20:11.

companies age is no barrier. In fact that?s what they call it,

:20:12.:20:14.

pension liberation. When John, not his real namd,

:20:15.:20:20.

from Sussex needed to free tp some I'd been unemployed for abott two

:20:21.:20:24.

years hardly earned any mondy. I've got a wife, two kids and,

:20:25.:20:32.

you know, I was struggling really badly financially, in debt, and was

:20:33.:20:36.

basically offered up to 50% of your pension fund before thd age of

:20:37.:20:41.

55 and my main concern when I first heard about it was obviouslx firstly

:20:42.:20:46.

that it was legal and secondly you know that xou

:20:47.:20:51.

weren?t going to get taxed on it. The scheme freed up ?47,000 in cash

:20:52.:20:55.

but John's relief was short lived. First the pensions' regulator

:20:56.:21:01.

and then the high court ruldd he'd taken what?s called

:21:02.:21:04.

an unauthorised payment. I can't tell you how extremdly

:21:05.:21:08.

stressful that was because I'd made great pains to make

:21:09.:21:12.

sure that the loans were legal. I thought it was

:21:13.:21:19.

the only way to get out of The great thing about pensions

:21:20.:21:21.

is that they are tax efficidnt. In other words, we get tax relief

:21:22.:21:31.

on them to encourage us to save And if you try to cash yours

:21:32.:21:34.

in before you're 55, cutting those You'll have to pay up to 70$

:21:35.:21:42.

of what you get back in tax. You actually cannot take anxthing

:21:43.:21:54.

from your pension until age 55. Now he owes the taxman thousands

:21:55.:22:08.

of pounds. Many of the people here had

:22:09.:22:26.

joined the same scheme. Some, as they've told me,

:22:27.:22:34.

face financial ruin. It's why they formed

:22:35.:22:36.

this support group. The people who were selling these

:22:37.:22:42.

schemes were very, very crafty, very clever, very slick,

:22:43.:22:45.

very convincing and they believed There are numerous people who have

:22:46.:22:58.

said to me, that they somethmes feel the only way out of this misery is

:22:59.:23:02.

to commit suicide because there is no escape.

:23:03.:23:03.

For those of us stuck in a financial hole, freeing up

:23:04.:23:06.

our pension pot might seem like the light at the end of the tunnel.

:23:07.:23:09.

But the people I've met so far say they were kept

:23:10.:23:12.

That's why I?m doing my own research.

:23:13.:23:15.

I want to find out if companies are really telling

:23:16.:23:17.

I can cash my pension in early and not pay tax.

:23:18.:23:25.

So we'll start with the initial pension, ?37,600.

:23:26.:23:29.

Now this company is going to take away a certain amount in feds.

:23:30.:23:32.

What you're left with is ?24,83 which is 68% of your pension.

:23:33.:23:40.

What it doesn't tell you is that HMRC are going to take a further

:23:41.:23:45.

55%, minimum, which leaves xou with about 10% left of your penshon.

:23:46.:23:52.

But are companies setting ott to mislead or just being short

:23:53.:23:56.

I'm hoping a few calls will help me to find out.

:23:57.:24:02.

We've chosen a selection of companies at random and H've

:24:03.:24:05.

asked pensions expert Richard Jacobs to listen in.

:24:06.:24:09.

I'm just wondering if you guys could help?

:24:10.:24:11.

I'm pretending I'm 48, so if I did cash in my penshon there

:24:12.:24:15.

You can't get money out of your pension before the age of 5.

:24:16.:24:22.

So the first company knows the rules.

:24:23.:24:23.

Ok, so you never know, maybe I won't be misled.

:24:24.:24:29.

Operation Scorpion might have something to do with that.

:24:30.:24:32.

It's what the police and pensions regulator are calling

:24:33.:24:36.

their crackdown on pension liberation companies.

:24:37.:24:37.

Since being set up it's invdstigated a sector worth almost half

:24:38.:24:41.

I want to know what Richard thinks of them.

:24:42.:24:56.

I'd just like you to listen and pick out the wrongdoings gohng on.

:24:57.:25:00.

We've made clear I?m under 45 but need cash and fast.

:25:01.:25:06.

The moneys are 20% of the v`lue of your transfer

:25:07.:25:10.

and those moneys are paid b`ck to you through another channel.

:25:11.:25:14.

Effectively you switch your pension fund and you will receive 20%

:25:15.:25:18.

Already you're licking your lips at this.

:25:19.:25:24.

Whoever that business is, if money is coming out it's got to

:25:25.:25:33.

There?s no money magic'd from anywhere

:25:34.:25:38.

but that is pension liberathon whatever name they put on it.

:25:39.:25:43.

In fact, of the nine companhes we contacted online and on the phone,

:25:44.:25:52.

The money is not coming out of the pension fund. That isn't out an

:25:53.:26:05.

outcome. He is going to losd his pension. That is some message. Well

:26:06.:26:18.

the next be just as misleadhng. That is dreadful.

:26:19.:26:26.

In fact, of the nine companhes we contacted online and on the phone,

:26:27.:26:29.

The message we need to get out to consumers is that anybody comes and

:26:30.:26:51.

offers access to your pension scheme before 55 they are telling xou

:26:52.:26:54.

alive. You need to walk awax very fast indeed. But if people `re still

:26:55.:27:01.

being misled, why are the vhctims paying? I'm hoping Ruthann can

:27:02.:27:08.

answer that question. There are some innocent people here being stung

:27:09.:27:12.

left right and centre. You telling me people actually have to pay this

:27:13.:27:17.

back even if they didn't know it in the first place? If there w`s a tax

:27:18.:27:26.

due H M RC has apply. If yot have accessed money from your pension pot

:27:27.:27:29.

that breaks the rules then we do have to charge you the tax because

:27:30.:27:33.

you got tax relief you were not eligible to receive. You will be

:27:34.:27:38.

charged. What is there to protect the consumer? I have seen m`ny

:27:39.:27:45.

cases, really tragic circumstances, where people have been misldd and

:27:46.:27:50.

lost their savings. I do fedl for the people involved. Some are real

:27:51.:27:53.

innocent victims in these situations. But from a tax point of

:27:54.:27:59.

view, we have to do apply the rules equally and fairly and if you have

:28:00.:28:03.

chosen to take your pension out of the safety of the retirement pension

:28:04.:28:08.

pot then tax will apply. A lessened the victims are learning thd hard

:28:09.:28:21.

way. It never leaves you mine. You are never able to relax. Opdration

:28:22.:28:30.

Scorpion is helping to raisd awareness but as you can sed,

:28:31.:28:32.

victims are still getting stung It?s great to hear what you think

:28:33.:28:39.

and your suggestions Next week, the recycling cowboys who

:28:40.:28:42.

employ cows to do the dirty work. Until then, from Inside Out,

:28:43.:28:51.

goodnight. Hello, I'm Ellie Crisell with

:28:52.:29:05.

your 90 second update. There's no return

:29:06.:29:07.

if you decide to leave the UK.

:29:08.:29:11.

Download Subtitles

SRT

ASS