Pension stuff, how's it all looking ? HAve you prepared ?

[Horse]

My thoughts, C&P from the other thread.

But you say that... however not the 'how'. My pension is work based and 'invested' in different portfolios as i suspect many are...

The problem is... what to do, how to do it and the potential risk associated. I can't take mine out and move it (well, maybe i could but i suspect there'd be penalties) and even if i could, where would i move it to... As a customer/consumer/client, you make the assumption that whichever provider you're with are doing their best to make you money, because of course the more you make, the more they make... so makes sense.

But the 'guidance' here is often exceptionally vague... why, because, well, no-one really knows the answers.

Yes, I made that assumption too. Based on however many years of their history.

Caveat on what follows: I am, by no means, a financial whizz. Total amateur.

My 'wealth' (and I'm not in anything like the earnings, savings, spending leagues of many here) is spread around. Mortgage paid off (by overpaying), no debts, some savings, meagre pension pots, smaller final salary pension.

The lesson from last year is, as the financial companies always say, 'previous performance etc ... ' The last few years have shown how random the world can be when it puts its silly head on.

Potter and others have been fairly vociferous that 'poorer' financial times are ahead. In simple terms, prices of everything up, interest rates up. Worst case recession, depression.

Some planning for that is fairly obvious: reduce debt, increase reserves. If you invest or save, then diversify.

When I had the opportunity, I paid the maximum into the company scheme. I *might* have been better putting that into something else.

I had an AVC running independent of any company scheme - but it was on the farm truck.

As to 'what' or 'where' you invest, I have no idea! I'm certainly not the type of person to buy watches. I know one who, on a whim, bought £10k of bitcoin. He's now semi-retired with a £0.5M nest egg. There was a guy who ran a US safety forum who was saying 'buy them, now!' I didn't. Partly because (like watches), I've not really had chunks like that to risk, but also - this might surprise you - I'm fairly risk averse

Get views, thoughts, ideas, options
Talk to an IFA or two, tell them what and why
Take some control in a way that suits you

Most important: decide NOW what you and MrsW want in the future.

And a sad, upsetting, honest, fact: I saw the state-funded home my father went into for the final months of his life. Filly and I want to avoid that if the time comes.

There's an old line that "growing old is mandatory, but growing up isn't". In this instance, it is.

[Count Steer]

I **think** I dodged a bullet and started my pension payments before the value tanked. No idea if that is true but I was given a figure a year or so ago and that’s the figure I get now (except it just got bumped up by 10%).

So did I get lucky or will my monthly pension payment vary according to the vagaries in the market?

Sounds like the Willy Wonka golden ticket...a final salary pension, it should only go up in line with inflation.

[Horse]

I **think** I dodged a bullet and started my pension payments before the value tanked. No idea if that is true but I was given a figure a year or so ago and that’s the figure I get now (except it just got bumped up by 10%).

So did I get lucky or will my monthly pension payment vary according to the vagaries in the market?

Sounds like the Willy Wonka golden ticket...a final salary pension, it should only go up in line with inflation.

And, if so, the value should be guaranteed, shouldn't it?


AAMOI, if there are funds remaining when the final pensioner stops receiving payments, what happens? Party time at the providers?

[Count Steer]

Sounds like the Willy Wonka golden ticket...a final salary pension, it should only go up in line with inflation.

And, if so, the value should be guaranteed, shouldn't it?


AAMOI, if there are funds remaining when the final pensioner stops receiving payments, what happens? Party time at the providers?

Yes...but...I still consider what might happen if mine suddenly disappeared. In theory the government would step in but if you're going to do Domesday scenarios.. (Mine ended up with a UK, national, absolutely, fundamentally strategic organisation owned by....global asset management firms BlackRock and Vanguard, public pension funds, notably those of Norway and the Abu Dhabi Investment Authority ie asset/dividend removers not infrastructure investors, same as all the water companies).

WRT winding up a pension outfit, I always assumed the parent company took the major slab out as they'd also put in. If they're no longer extant...dunno.

[SSS]

I dont have any pensions, not one. Dont believe in them. Seen many getting stuffed over with pension providers and annuities.

Mrs SSSs dad was one of the Equitable Life pension holders when it went bust. He received nothing - retirement plans in tatters after many years paying in. Last i heard they were going to be offered pennies in the pound on wind up, but he died before that happened (happening?)

So given im 50 and getting closer to retirement, the plans ive put in place is invested in property, land, precious metals etc. The retirement plan is to become a part time farmer and set up a horse livery yard to supplement the state pension (if it even exists by the time I get there)

[Count Steer]

Mrs SSSs dad was one of the Equitable Life pension holders when it went bust. He received nothing - retirement plans in tatters after many years paying in. Last i heard they were going to be offered pennies in the pound on wind up, but he died before that happened (happening?)

I didn't realise this but it appears the government (taxpayer) shouldered some of the blame (cost) for the Equitable Life fiasco due to regulatory failings. (I know 2 people that fell foul of it). It appears people were offered something like 1/3 of the difference between what they got from EL and what they would have got from a different provider. That doesn't sound like what the people I know got, which was a fraction of what they expected in total ie not an amount + 1/3, more like 1/3 or less. It was a complete cluster-up because they'd over-contractually promised to some and that drained the coffers. The ones that did OK wouldn't take less in order to bail out the others, which is fair enough I suppose...'your problem, not mine'.

https://www.gov.uk/government/publicati ... nal-report

[Horse]

I dont have any pensions

the plans ive put in place is invested in property, land, precious metals etc.

You don't have formal pension savings * but you have planned and arranged diverse provision.

* perhaps with tax benefits

[SSS]

I dont have any pensions

the plans ive put in place is invested in property, land, precious metals etc.

You don't have formal pension savings * but you have planned and arranged diverse provision.

* perhaps with tax benefits

Indeed, for a workplace/contributory type pension scheme - I dont have any, but have tried to navigate as best I can the old age & income scenario as i see/saw it.
It may work, it may not. Suppose i'll soon find out At least i'll be safe in the knowledge i havent contributed to Spivs/Wideboys bonuses and fees

[weeksy]

[Screwdriver]

Just met up with an ex. MOD mate I went to university with. He's obviously just got his MOD pension too.

Turned up on a spanky new Ducati 950SP...

[gremlin]

Having seen my IFA, apparently the answer for me and Mrs. G is 'Looking good'.

However, as we now seem to be funding the Gremlinette's uni education and living fees, the dream of retirement at 55 is remains just that. A dream.

[JackyJoll]

Mrs SSSs dad was one of the Equitable Life pension holders when it went bust.

A work pension scheme I was in (AEAT) failed in 2012. I had transferred everything out to a new job 10 years earlier, so I escaped. The Government stepped in, in some way, but people still lost a lot. A legal case dragged on for years.

If I remember correctly, the Govt paid 90% of expected benefits but only post-1998 (I think) accruals were to be index linked. That may mean that some of those pensioners are now starting to suffer.

[Potter]

This may be of help.

https://www.hl.co.uk/retirement/preparing/pension-wise
"Pension Wise is a free and impartial government service designed for everyone aged 50 or over, who has a UK-based personal or workplace pension. "

[Count Steer]

This may be of help.

https://www.hl.co.uk/retirement/preparing/pension-wise
"Pension Wise is a free and impartial government service designed for everyone aged 50 or over, who has a UK-based personal or workplace pension. "

Good call. I used the service a while ago. Quite impressed with the response, info and advice. Actually got a human being assessing the question and providing a detailed response rather than lists of available info.

[Bustaspoke]

This may be of help.

https://www.hl.co.uk/retirement/preparing/pension-wise
"Pension Wise is a free and impartial government service designed for everyone aged 50 or over, who has a UK-based personal or workplace pension. "

I used them a couple of years back,same experience as count steer

[Dodgy69]

So where is the BEST place to put your personal pension. Drawdown jobby. ???

[Mr. Dazzle]

You need to figure out when you're gonna die, then it's way easier to identify the best

[Potter]

So where is the BEST place to put your personal pension. Drawdown jobby. ???

It's how long is a piece of string really, if there was one answer then it would be easy, but there are loads of things to consider, like what is your risk appetite, draw down when and how much, what's your tax situation...plus dozens of other questions that mean it's really worth paying someone who knows all the different products, how to facilitate entry into and out of them and what they will deliver.

Even then, it's a risk.
If I could guarantee 6% interest for the rest of my life then I'd put all my money into that and draw down until it's run out, which by my calculations will be well into my 90's - but I can't and so even with (what I think) is a decent sum of money, I still don't know how it will play out.

Any advisor that reckons he does know for certain is to be avoided, because he's trying to push you into something that works for him, not you.
Mine always gives his best guess, he's honest about it being his best guess, then I pick him apart on it so I understand the risks - FWIW he's dead against buying an annuity, he said in his opinion it's probably the worst of all the options out there, but then he's younger than me and a bit of a risk taker.

[Dodgy69]

I do believe we all have a common interest though, we all want our investments to grow every year.

[Count Steer]

I do believe we all have a common interest though, we all want our investments to grow every year.

Not necessarily.

Sometimes, if you're putting money in, you want dips in the market so your money/income reinvested buys more shares/units, then pick up again. A dip's not a good time to be taking money out though.

It's a ratchet thing.