Pensions
Comments
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Now that would be interesting but we don't get that option. I figure mine is not that bad a situation to be in.surrey_commuter said:
If you opt out we get a 10% pay rise which makes the decision more interestingStevo_666 said:
Sometimes it makes sense - occupational schemes such as my current one has my employer putting in twice what I do, so if I 'save' money by stopping my contributions I lose twice that.surrey_commuter said:
and still making contributions 6 years later is still more nichekingstongraham said:I think those who had over £1m invested in pensions in 2016 and haven't got financial advice yet are a pretty niche market.
"I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]0 -
I'd question the legality of that as the employer is not allowed to try to influence the decision of an employee to remain part of an AE qualifying scheme or opt out. Suspect the Pensions Regulator would not like it.surrey_commuter said:
If you opt out we get a 10% pay rise which makes the decision more interestingStevo_666 said:
Sometimes it makes sense - occupational schemes such as my current one has my employer putting in twice what I do, so if I 'save' money by stopping my contributions I lose twice that.surrey_commuter said:
and still making contributions 6 years later is still more nichekingstongraham said:I think those who had over £1m invested in pensions in 2016 and haven't got financial advice yet are a pretty niche market.
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if it's fun/creative, why not? i've friends in their 70s still at it, not because they need to, they just enjoy itStevo_666 said:SG you are right, you can still apply in certain circumstances:
https://gov.uk/guidance/pension-schemes-protect-your-lifetime-allowance#individual-protection-2016
So worth doing if you can. That said, if you are several times over the LTA then I'm surprised you're still bothering to get up and go work.
still remember a restaurant opening bash a few years ago, met an old couple, he looked like private godfrey of dad's army, still ran the aerospace business he'd built from scratch, way older than us, his passion for it was wonderful
unlike the restaurant, which went titsup fairly soon, i think they chose the serving staff for haute svelteness rather than competence, this one...
https://www.harpersbazaar.com/uk/culture/going-out/news/a7384/wabi-holborn/
my bike - faster than god's and twice as shiny1 -
To clarify this is for people who have hit the LTA or even triggered an event to stop the clockDorset_Boy said:
I'd question the legality of that as the employer is not allowed to try to influence the decision of an employee to remain part of an AE qualifying scheme or opt out. Suspect the Pensions Regulator would not like it.surrey_commuter said:
If you opt out we get a 10% pay rise which makes the decision more interestingStevo_666 said:
Sometimes it makes sense - occupational schemes such as my current one has my employer putting in twice what I do, so if I 'save' money by stopping my contributions I lose twice that.surrey_commuter said:
and still making contributions 6 years later is still more nichekingstongraham said:I think those who had over £1m invested in pensions in 2016 and haven't got financial advice yet are a pretty niche market.
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Brian could have lectured them on need and wantsungod said:
if it's fun/creative, why not? i've friends in their 70s still at it, not because they need to, they just enjoy itStevo_666 said:SG you are right, you can still apply in certain circumstances:
https://gov.uk/guidance/pension-schemes-protect-your-lifetime-allowance#individual-protection-2016
So worth doing if you can. That said, if you are several times over the LTA then I'm surprised you're still bothering to get up and go work.
still remember a restaurant opening bash a few years ago, met an old couple, he looked like private godfrey of dad's army, still ran the aerospace business he'd built from scratch, way older than us, his passion for it was wonderful
unlike the restaurant, which went titsup fairly soon, i think they chose the serving staff for haute svelteness rather than competence, this one...
https://www.harpersbazaar.com/uk/culture/going-out/news/a7384/wabi-holborn/2 -
OK. I misunderstood.surrey_commuter said:
To clarify this is for people who have hit the LTA or even triggered an event to stop the clockDorset_Boy said:
I'd question the legality of that as the employer is not allowed to try to influence the decision of an employee to remain part of an AE qualifying scheme or opt out. Suspect the Pensions Regulator would not like it.surrey_commuter said:
If you opt out we get a 10% pay rise which makes the decision more interestingStevo_666 said:
Sometimes it makes sense - occupational schemes such as my current one has my employer putting in twice what I do, so if I 'save' money by stopping my contributions I lose twice that.surrey_commuter said:
and still making contributions 6 years later is still more nichekingstongraham said:I think those who had over £1m invested in pensions in 2016 and haven't got financial advice yet are a pretty niche market.
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Fair play, I get that and tbh I have no intention of retiring any time soon for those sorts of reasons (tried a year or so out a decade back and went back before I had to).sungod said:
if it's fun/creative, why not? i've friends in their 70s still at it, not because they need to, they just enjoy itStevo_666 said:SG you are right, you can still apply in certain circumstances:
https://gov.uk/guidance/pension-schemes-protect-your-lifetime-allowance#individual-protection-2016
So worth doing if you can. That said, if you are several times over the LTA then I'm surprised you're still bothering to get up and go work.
still remember a restaurant opening bash a few years ago, met an old couple, he looked like private godfrey of dad's army, still ran the aerospace business he'd built from scratch, way older than us, his passion for it was wonderful
unlike the restaurant, which went titsup fairly soon, i think they chose the serving staff for haute svelteness rather than competence, this one...
https://www.harpersbazaar.com/uk/culture/going-out/news/a7384/wabi-holborn/"I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]0 -
Fvck that if I won 2 million quid tomorrow I would be off.Stevo_666 said:
Fair play, I get that and tbh I have no intention of retiring any time soon for those sorts of reasons (tried a year or so out a decade back and went back before I had to).sungod said:
if it's fun/creative, why not? i've friends in their 70s still at it, not because they need to, they just enjoy itStevo_666 said:SG you are right, you can still apply in certain circumstances:
https://gov.uk/guidance/pension-schemes-protect-your-lifetime-allowance#individual-protection-2016
So worth doing if you can. That said, if you are several times over the LTA then I'm surprised you're still bothering to get up and go work.
still remember a restaurant opening bash a few years ago, met an old couple, he looked like private godfrey of dad's army, still ran the aerospace business he'd built from scratch, way older than us, his passion for it was wonderful
unlike the restaurant, which went titsup fairly soon, i think they chose the serving staff for haute svelteness rather than competence, this one...
https://www.harpersbazaar.com/uk/culture/going-out/news/a7384/wabi-holborn/1 -
To be so cheaply bought.1985 Mercian King of Mercia - work in progress (Hah! Who am I kidding?)
Pinnacle Monzonite
Part of the anti-growth coalition0 -
I'm much cheaper than that! 🤣rjsterry said:To be so cheaply bought.
The above may be fact, or fiction, I may be serious, I may be jesting.
I am not sure. You have no chance.Veronese68 wrote:PB is the most sensible person on here.0 -
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I suspect that the small PPP into which I've been paying about £70 a month for the last 30 years is going to be worth about £70 by the time this is all over. Fortunately I hope it won't be the only thing left once the dust has settled, otherwise I might be working for somewhat longer than I'm planning...0
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I've already resigned myself to an additional year.briantrumpet said:...otherwise I might be working for somewhat longer than I'm planning...
At least...The above may be fact, or fiction, I may be serious, I may be jesting.
I am not sure. You have no chance.Veronese68 wrote:PB is the most sensible person on here.0 -
I’m no expert on pensions but I think the current turmoil relates specifically to defined benefit schemes, where there are specific liabilities. The current issues arise from managers trying to match these liabilities with derivatives, to keep cash spare to invest in higher yielding assets to generate higher returns overall.briantrumpet said:I suspect that the small PPP into which I've been paying about £70 a month for the last 30 years is going to be worth about £70 by the time this is all over. Fortunately I hope it won't be the only thing left once the dust has settled, otherwise I might be working for somewhat longer than I'm planning...
Your PPP is most likely a defined contribution scheme where there are no specific liabilities and so your fund can’t go insolvent. Its value will fluctuate depending on the value of the underlying assets, but these are likely to be equities and bonds, which are less volatile than the derivatives held by defined benefit schemes.
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wallace_and_gromit said:
I’m no expert on pensions but I think the current turmoil relates specifically to defined benefit schemes, where there are specific liabilities. The current issues arise from managers trying to match these liabilities with derivatives, to keep cash spare to invest in higher yielding assets to generate higher returns overall.briantrumpet said:I suspect that the small PPP into which I've been paying about £70 a month for the last 30 years is going to be worth about £70 by the time this is all over. Fortunately I hope it won't be the only thing left once the dust has settled, otherwise I might be working for somewhat longer than I'm planning...
Your PPP is most likely a defined contribution scheme where there are no specific liabilities and so your fund can’t go insolvent. Its value will fluctuate depending on the value of the underlying assets, but these are likely to be equities and bonds, which are less volatile than the derivatives held by defined benefit schemes.
I think you're probably right, from my very limited understanding, but it's obviously disappointing to see the fund shrink from one year to the next despite still making contributions. It's just that in the current climate one wonders if the financial systems are more a house of cards.0 -
I was saying that prior to 2008. People said I was stupid. I maintain that the whole financial industry is a house of cards built on sand. Doesn't take much to knock it over.briantrumpet said:.... It's just that in the current climate one wonders if the financial systems are more a house of cards.
The above may be fact, or fiction, I may be serious, I may be jesting.
I am not sure. You have no chance.Veronese68 wrote:PB is the most sensible person on here.0 -
I would suggest that you do not understand what the whole financial system encompassespblakeney said:
I was saying that prior to 2008. People said I was stupid. I maintain that the whole financial industry is a house of cards built on sand. Doesn't take much to knock it over.briantrumpet said:.... It's just that in the current climate one wonders if the financial systems are more a house of cards.
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The flip side of this is that the associated interest rate rises make annuity rates much more attractive than they have been throughout the low interest rate era.briantrumpet said:wallace_and_gromit said:
I’m no expert on pensions but I think the current turmoil relates specifically to defined benefit schemes, where there are specific liabilities. The current issues arise from managers trying to match these liabilities with derivatives, to keep cash spare to invest in higher yielding assets to generate higher returns overall.briantrumpet said:I suspect that the small PPP into which I've been paying about £70 a month for the last 30 years is going to be worth about £70 by the time this is all over. Fortunately I hope it won't be the only thing left once the dust has settled, otherwise I might be working for somewhat longer than I'm planning...
Your PPP is most likely a defined contribution scheme where there are no specific liabilities and so your fund can’t go insolvent. Its value will fluctuate depending on the value of the underlying assets, but these are likely to be equities and bonds, which are less volatile than the derivatives held by defined benefit schemes.
I think you're probably right, from my very limited understanding, but it's obviously disappointing to see the fund shrink from one year to the next despite still making contributions.
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It is concerning that the investment strategy of a few UK pension funds can apparently get the US Federal Reserve nervous about "contagion".surrey_commuter said:
I would suggest that you do not understand what the whole financial system encompassespblakeney said:
I was saying that prior to 2008. People said I was stupid. I maintain that the whole financial industry is a house of cards built on sand. Doesn't take much to knock it over.briantrumpet said:.... It's just that in the current climate one wonders if the financial systems are more a house of cards.
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I seem to know enough to know that it is unstable.surrey_commuter said:
I would suggest that you do not understand what the whole financial system encompassespblakeney said:
I was saying that prior to 2008. People said I was stupid. I maintain that the whole financial industry is a house of cards built on sand. Doesn't take much to knock it over.briantrumpet said:.... It's just that in the current climate one wonders if the financial systems are more a house of cards.
I may not know the mechanisms behind that but the evidence is front page news.The above may be fact, or fiction, I may be serious, I may be jesting.
I am not sure. You have no chance.Veronese68 wrote:PB is the most sensible person on here.0 -
My slightly informed guess is that it is more like virtually every pension fund and that group think of their advisors is causing them to act like a herd.wallace_and_gromit said:
It is concerning that the investment strategy of a few UK pension funds can apparently get the US Federal Reserve nervous about "contagion".surrey_commuter said:
I would suggest that you do not understand what the whole financial system encompassespblakeney said:
I was saying that prior to 2008. People said I was stupid. I maintain that the whole financial industry is a house of cards built on sand. Doesn't take much to knock it over.briantrumpet said:.... It's just that in the current climate one wonders if the financial systems are more a house of cards.
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Fair point. But it's still noteworthy that the Fed (and the ECB) are worried.surrey_commuter said:
My slightly informed guess is that it is more like virtually every pension fund and that group think of their advisors is causing them to act like a herd.wallace_and_gromit said:
It is concerning that the investment strategy of a few UK pension funds can apparently get the US Federal Reserve nervous about "contagion".surrey_commuter said:
I would suggest that you do not understand what the whole financial system encompassespblakeney said:
I was saying that prior to 2008. People said I was stupid. I maintain that the whole financial industry is a house of cards built on sand. Doesn't take much to knock it over.briantrumpet said:.... It's just that in the current climate one wonders if the financial systems are more a house of cards.
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The closer you get to retirement age the scarier it all seems. I'm now 65, in receipt of a couple of DB pensions but also still working, OH is 63 and doing only occasional paid work. I have another 2 DC pensions and OH has one; we've not done anything with these yet. I'm fully paid up for State Pension, OH is nearly so.
We had an IFA do some retirement planning 3 years ago when I was made redundant, and his then cash flow projections made it look like we'd be comfortably well off in retirement.
Since then we've been watching successive pension statements showing funds either not growing, or actively shrinking. We should probably have another session with an IFA, see if they say the same things as the last one. Instinct tells me that this would be the worst time to be making important decisions about retirement / pensions0 -
wallace_and_gromit said:
The flip side of this is that the associated interest rate rises make annuity rates much more attractive than they have been throughout the low interest rate era.briantrumpet said:wallace_and_gromit said:
I’m no expert on pensions but I think the current turmoil relates specifically to defined benefit schemes, where there are specific liabilities. The current issues arise from managers trying to match these liabilities with derivatives, to keep cash spare to invest in higher yielding assets to generate higher returns overall.briantrumpet said:I suspect that the small PPP into which I've been paying about £70 a month for the last 30 years is going to be worth about £70 by the time this is all over. Fortunately I hope it won't be the only thing left once the dust has settled, otherwise I might be working for somewhat longer than I'm planning...
Your PPP is most likely a defined contribution scheme where there are no specific liabilities and so your fund can’t go insolvent. Its value will fluctuate depending on the value of the underlying assets, but these are likely to be equities and bonds, which are less volatile than the derivatives held by defined benefit schemes.
I think you're probably right, from my very limited understanding, but it's obviously disappointing to see the fund shrink from one year to the next despite still making contributions.
Yeah, I've got funds elsewhere, and though the pot has decreased by about 7% in 6 months, the projected income has increased. Quite glad I set the risk to low though.0 -
The timing depends what you are going to do with the DC pots. You will soon be getting a £10k pay rise when the state pension kicks in so that should give you the breathing space to make decisionsMunsford0 said:The closer you get to retirement age the scarier it all seems. I'm now 65, in receipt of a couple of DB pensions but also still working, OH is 63 and doing only occasional paid work. I have another 2 DC pensions and OH has one; we've not done anything with these yet. I'm fully paid up for State Pension, OH is nearly so.
We had an IFA do some retirement planning 3 years ago when I was made redundant, and his then cash flow projections made it look like we'd be comfortably well off in retirement.
Since then we've been watching successive pension statements showing funds either not growing, or actively shrinking. We should probably have another session with an IFA, see if they say the same things as the last one. Instinct tells me that this would be the worst time to be making important decisions about retirement / pensions0 -
surrey_commuter said:
The timing depends what you are going to do with the DC pots. You will soon be getting a £10k pay rise when the state pension kicks in so that should give you the breathing space to make decisionsMunsford0 said:The closer you get to retirement age the scarier it all seems. I'm now 65, in receipt of a couple of DB pensions but also still working, OH is 63 and doing only occasional paid work. I have another 2 DC pensions and OH has one; we've not done anything with these yet. I'm fully paid up for State Pension, OH is nearly so.
We had an IFA do some retirement planning 3 years ago when I was made redundant, and his then cash flow projections made it look like we'd be comfortably well off in retirement.
Since then we've been watching successive pension statements showing funds either not growing, or actively shrinking. We should probably have another session with an IFA, see if they say the same things as the last one. Instinct tells me that this would be the worst time to be making important decisions about retirement / pensions
That's the bit I'll be making a call on... whether I can reasonably safely retire at 60 and not take too big a hit on capital before that 'pay rise' kick in. I'm a very cheap date, so that £10k goes quite a long way in % terms to my basic living costs.
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Don't quit the day job.Munsford0 said:I'm now 65, in receipt of a couple of DB pensions but also still working
Basically the money you thought you had only exists on paper because people don't want to buy that paper. The issues are largely of the BoE's making (at the behest of successive govts from Blair onwards) with Truss being the straw that has broken the camel's back.
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Instagramme0 -
I was doing this maths recently and was picturing it as a bar graph with the different income streams kicking in between me and the wife. I figured that up to 67 I could draw down funds at an unsustainable rate. Wife is 7 years younger than me so her "pay rise" won't kick in for 8 years after me.briantrumpet said:surrey_commuter said:
The timing depends what you are going to do with the DC pots. You will soon be getting a £10k pay rise when the state pension kicks in so that should give you the breathing space to make decisionsMunsford0 said:The closer you get to retirement age the scarier it all seems. I'm now 65, in receipt of a couple of DB pensions but also still working, OH is 63 and doing only occasional paid work. I have another 2 DC pensions and OH has one; we've not done anything with these yet. I'm fully paid up for State Pension, OH is nearly so.
We had an IFA do some retirement planning 3 years ago when I was made redundant, and his then cash flow projections made it look like we'd be comfortably well off in retirement.
Since then we've been watching successive pension statements showing funds either not growing, or actively shrinking. We should probably have another session with an IFA, see if they say the same things as the last one. Instinct tells me that this would be the worst time to be making important decisions about retirement / pensions
That's the bit I'll be making a call on... whether I can reasonably safely retire at 60 and not take too big a hit on capital before that 'pay rise' kick in. I'm a very cheap date, so that £10k goes quite a long way in % terms to my basic living costs.0 -
Low risk will likely mean you have a realtively high exposure to fixed interest (gilts, corporate bonds). The capital value of these was always going to get hammered when there was a normalisation of interest rates.briantrumpet said:wallace_and_gromit said:
The flip side of this is that the associated interest rate rises make annuity rates much more attractive than they have been throughout the low interest rate era.briantrumpet said:wallace_and_gromit said:
I’m no expert on pensions but I think the current turmoil relates specifically to defined benefit schemes, where there are specific liabilities. The current issues arise from managers trying to match these liabilities with derivatives, to keep cash spare to invest in higher yielding assets to generate higher returns overall.briantrumpet said:I suspect that the small PPP into which I've been paying about £70 a month for the last 30 years is going to be worth about £70 by the time this is all over. Fortunately I hope it won't be the only thing left once the dust has settled, otherwise I might be working for somewhat longer than I'm planning...
Your PPP is most likely a defined contribution scheme where there are no specific liabilities and so your fund can’t go insolvent. Its value will fluctuate depending on the value of the underlying assets, but these are likely to be equities and bonds, which are less volatile than the derivatives held by defined benefit schemes.
I think you're probably right, from my very limited understanding, but it's obviously disappointing to see the fund shrink from one year to the next despite still making contributions.
Yeah, I've got funds elsewhere, and though the pot has decreased by about 7% in 6 months, the projected income has increased. Quite glad I set the risk to low though.
If you have a gilt paying £1.00 pa, and rates rise so new gilts pay £4.00 pa then the capital value of your gilt will fall.
Remember your time horizon. Unless you are going to buy an annuity (no flexibility, but a secure income), then you will be invested for 20-35 years.0