Sure, these risky bets can sometimes pay off
big. We saw it in 2021. It was a historic year
when public pensions proudly bragged about huge
profits. Everyone cheered, I remember it. But
then 2022 rolled around with trust and a mini
-budget, bringing a market meltdown that delivered
a brutal drop, wiping out the prior year's gains
and then more. Surf in a giant wave. It's a thrilling
ride up followed by a brutal bone crushing wipe
out. Now this instability isn't just a small
problem. It matters a lot because pension maths
is absolutely ruthless. When the pensions investments
swing wildly up and down, the promises to keep
retirees, the promises to retirees just keep
getting bigger. thanks to the cost of living
increases. Now a single bad year can push your
plan from being relatively healthy all the way
to being in a dangerous position. What happens
then? It forces tax hikes, I'd starve local budgets,
we're seeing it now. We're talking fewer teachers
in classrooms, crumbling roads full of potholes
and higher taxes for everyone. Now we the taxpayer
end up paying on both ends. It's a double whammy.
and it's entirely avoidable so while the massive
funding black hole in uk pensions has recently
become a surplus for a while the high fee habits
picked up along the way remain now to get there
pension plans relied upon an overly optimistic
guests at the market betting on heavier and more
complicated high fee investments and you guessed
it they paid even bigger fees it's a vicious
cycle a financial treadmill that just keeps speeding
up and draining away the surpluses that have
existed now every tiny bit of extra cost added
to a 50 billion pound pension pot isn't just
pocket change it equals five million pounds per
year straight out of retirees pockets now managers
know this yet the fee growth consistently keeps
outpacing the cost of living why because the
bill for these excessive fees ultimately lands
on the taxpayer and future retirees not on the
people who approve these individual contracts
it's the easiest way to spend other people's
money and it's happening with our money now this
creates constant financial pressure forcing organizations
to increase their payments into their pension
funds and this can strain finances and usually
impact essential public services now the lack
of strong safety net means many plans are still
vulnerable to the perfect storm scenarios where
their investments crash just as the debts to
retirees climb and this devastates the finances
so let's talk solutions become your own detective
all right let's all right let's talk solutions
because you're not powerless here first become
a financial detective Find the annual report
for your pension plan. Now, don't be intimidated
by the name. It's a public document, and once
you've searched for it on Google, grab a calculator,
and with some patience, add up every single line
item with the word fee for the past five years.
I promise you, the total will absolutely blow
your mind. It's like... peeling back the layers
of that financial onion we talked about so next
compare that eye -watering number to what it
was a decade ago if the fees have grown faster
than the pension promises to retirees you've
spotted a massive red flag don't keep it to yourself
post these numbers on social media tag your local
tag your local pension trustee and politely but
firmly as for an explanation why are we paying
so much more sunshine my friends is the best
disinfectant for these hidden fees and transport
transparency forces them to be accountable so
the third thing we need to do is push for a simpler
strategy of just investing in the to push for
a simpler strategy of just investing in the whole
market through low -cost funds now this isn't
complicated it's just smart investing now take
the government back nest pension scheme for example
its main fund runs on a yearly fee of 0 .3 percent
plus a small charge when you contribute every
public pension in the country could do this for
a fraction of what they pay expensive managers
for if politics and self -interest simply kept
Now the savings for a mid -sized county council,
millions of pounds a year, think about that,
millions that could buy a whole lot of school
lunches, fix a lot of potholes or hire some more
essential care workers. It's not just about saving
money, it's about redirecting it to where it
truly belongs, serving the public. Changing the
whole system feels slow. You're not helpless.
You can still protect yourself right now. Now,
if your employer lets you choose your own funds
within your workplace pension, use that power.
Or maybe open a SIP, a self -invested personal
pension. This is your personal escape hatch.
Through it, you can build a simple, effective
portfolio with just three funds, maybe. one covering
the entire UK, one for international markets,
and maybe one in safer investments like bonds.
The average blended cost for this is a tiny 0
.04 % to 0 .06%. Check it once a year, ignore
all the noise. You might find you get better
results. It's simple, powerful, puts you back
in control. Now, members on here on my channel
get to see inside my SIP and I publish every
trade I make and explain why I made it. And my
SIP has always paid around 10 % per year. Now,
try getting 10 % with a high fee managed work
pension. It's not going to happen. Now, if you're
interested, click the join button on the channel
here. It's only 99p a month. Now, what if you
don't have? a choice on your work pension well
email hr i mean companies usually respond if
you know five to fifty people email them and
ask for a lower cost option and this is because
it's easy for them and it cuts the cost for the
company and it actually costs them virtually
nothing being a squeaky wheel because squeaky
wheels get the oil And here's another crucial
move. Every time you switch jobs, move your old
work pension into a low -cost SIP at a provider
like Vanguard, Interactive Investor, Free Trade,
Fidelity, AJ Bell. Leaving money stranded in
a former employer's high -fee plan is like forgetting
your suitcase full of cash. But just make sure
that you're not losing any benefits before you
move that. Benefits might include things like
additional spouse's pension, that kind of thing.
Just be careful you don't lose any of that. Now,
if this is the first time you've heard about
pension fees being piled on top of fees and the
silent skimming of your retirement, then frankly,
this channel's algorithm hasn't been doing its
job yet. But you can fix that. Hit the subscribe
button. and these crucial videos should and these
crucial videos will reach you before your next
contribution before your next pension contribution
gets eaten up by fees so let's build a community
that demands transparency protects our financial
futures now pension trustees answer to higher
authorities members of parliament the dwp the
pensions regulator and these are people with
real power to make change so i'm going to pick
up the phone call your mp's office read two simple
powerful sentences i'm a constituent i'm a voter
please support honest up -to -date reporting
and full fee transparency in public pensions
now the staff in the mp's office count these
calls believe me 20 voices just 20 can move a
critical policy from the back burner straight
to the front and emails work sure but phone calls
they get attention much faster they know a constituent
on the phone is a constituent who cares deeply
who cares deeply And don't keep this information
to yourself. Forward the video on. Share the
message with a teacher, a police officer, a firefighter.
Our public servants have the loudest moral voice
in the fight. They've bargained for the pension
in good faith. Dedicating their lives to our
communities. And they absolutely deserve to keep
what they've earned. And what they've earned
should be free from hidden fees. reckless management
the voices strengthen the message making it impossible
for the politicians to ignore so here's a golden
rule a simple benchmark you can use for life
when you look at any investment fund aim for
yearly fees under 0 .2 percent better yet shoot
for 0 .02 i mean top providers like vanguard
and fidelity all offer funds at this or even
below these levels i mean anything more expensive
well it must prove it can consistently beat the
market over say 10 years even after you've subtracted
the high fees the taxes and the and account for
the extra risk they took Most expensive funds,
despite their slick marketing, simply can't.
They claim they can, but the numbers really back
it up over the long haul. Now, tell your friends,
if enough people in the population complain about
high fees, understanding how much they can cost
over time, the city's fee machine will starve.
It'll be forced to adapt. or it will simply fade
away. Now, this isn't just about your retirement.
It's about building a future where financial
honesty becomes the norm, not the exception.
So sorry if this has been a bit of an angry rant,
but to finally finish up, I want to talk about
a history of risky bets and a system that's stacked.
against you legally picks your pocket while you
sleep it's a sobering reality but you're not
powerless far from it you've got the knowledge
and the tools to fight back expose the numbers
move your personal pensions to low -cost options
raise your voice raise your voice to change public
pensions every single day you delay the skim
can get worse growing larger more destructive
so let's take 10 minutes this week just 10 minutes
download that annual report move that old pension
pot if it's sensible to do so send that email
to hr the future will look back and thank you
the future look back and thank you it's your
money it's your future and it's time to claim
it back Thanks for listening.