Quite right, she did not invent private pensions, but she did bring in legislation to encourage company pension members to switch to private ones. Company pension administrators could see the disadvantages but were not allowed to advise employees to remain with their company pension. As a result of this many sharks got in on the act and were able to persuade employees to transfer their accumulated benefits before mysteriously ceasing to exist. Lots of retired people are suffering from this legislation today.
Yes, she did. She also taxed the State Pension which costs me £1200 a year -- well over £10,000 paid in tax since I retired.
I had a bloke aged 57 come to me for advice when this legislation came in. He had worked for British Steel for 29 years and was thinking of taking his pension elsewhere, in spite of the BS Scheme being a final salary index linked pension. I advised him not to change, pointing out that when he paid £1 into his BS Pension, BS paid £1 also. He was steadfast and changed.
A year later the works closed and all the employees over 55 were allowed to draw their BS pension without actuarial reduction from their date of redundancy. He came back to me a complained that his new pension provider would not let him have his pension till he was 65. The only advice I could then give him was to write to Thatcher.
Trust in Widnes
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