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Retirement

Feed the Monster said:
I quite fancy that as a side hustle. Is being thick as fuck a problem though 🤔

Another daft question but how do you find out. I know the scheme, have the App etc and it seems to have been a decent return but nee idea what funds its in or if I can ask them to move it
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If you are still working ask fkn HR or pension dept if they have one, they should be able to give you the information*

*The fkn is not directed at you it's just fkn HR boiled my piss when I was at work :D
 

kevinarnott said:
This - I work as an adviser (30+ years) and if you ask many people where their money is invested they will say 'pension', not understanding that the underlying fund(s) will dictate what they accummulate. Part of the problem too is Lifestyle funds/portfolios, which as many will know move the monies from equities to bonds in the 5 years leading up to the retirement age of the pension. This can be disastrous, especially for those in 2022 when many bond funds fell 15-20%. My view is that during retirement the pot could be invested for 20-30 years, so personally I'll be leaving it 100% equities.
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True but some people might want a lump sum as well as income. For example I have investments in an AVC which I’ll be taking as 100% tax free cash, within a 3-5 year investment horizon. Equities could quite as easily fall as much as bonds did.

That’s why you explain to your clients about sequence of return risks, glide paths and cash buffers. ;)
 
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Ned Land said:
True but some people might want a lump sum as well as income. For example I have investments in an AVC which I’ll be taking as 100% tax free cash, within a 3-5 year investment horizon. Equities could quite as easily fall as much as bonds did.

That’s why you explain to your clients about sequence of return risks, glide paths and cash buffers. ;)
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Fook knows what all that means.
 
Devil71 said:
Well the day has finally arrived.
I've done my last shift, handed all my equipment back and left the building for the very last time after 37.5 years in the workforce.

Here's to the future and my new theme tune

You must be logged on to see media items
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Congratulations. Coming up to 3 months now for me, no particular hobbies, projects, etc and not in the slightest bit bored. Summer coming as well.
 
kevinarnott said:
This - I work as an adviser (30+ years) and if you ask many people where their money is invested they will say 'pension', not understanding that the underlying fund(s) will dictate what they accummulate. Part of the problem too is Lifestyle funds/portfolios, which as many will know move the monies from equities to bonds in the 5 years leading up to the retirement age of the pension. This can be disastrous, especially for those in 2022 when many bond funds fell 15-20%. My view is that during retirement the pot could be invested for 20-30 years, so personally I'll be leaving it 100% equities.
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I would say "pension" as well, because mine is in the default. How are you supposed to know what are the best funds to choose?
It seems like a minefield to me.
 
WHD said:
I would say "pension" as well, because mine is in the default. How are you supposed to know what are the best funds to choose?
It seems like a minefield to me.
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It's not easy as they (companies/pension companies) don't make it easy - the key is to obtain the full fund list and then even speak to an IFA to help, they may just charge an hourly fee. Or ask AI, which will arguably provide a better outcome that the staus quo.
 
kevinarnott said:
It's not easy as they (companies/pension companies) don't make it easy - the key is to obtain the full fund list and then even speak to an IFA to help, they may just charge an hourly fee. Or ask AI, which will arguably provide a better outcome that the staus quo.
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I binned the FA off last year. Claude, perplexity and chatgpt give you a great insight into investments and particular funds with as much information as you could want. I have chosen some funds lately that are very light on the mag 7.
 
Hi all

I have had a bit of an awakening over the last few days and am extremely worried I have completely screwed myself over.

Years ago when I started in my current place I picked a couple of low risk investments on Aviva and didn't think much of it. I pay the max percentage in and get a decent contribution from my employer but have had literally zero growth in that time. It is effectively within £200 of what I have ever paid in. Naively I always thought everyone was in the same boat especially over the last six years since covid, wars, cost of living etc. Only when I mentioned this in passing to someone I work with were they incredulous about it and got up their pension pot to show me about £10,000 of growth (in a genuine way, certainly not meant as a brag)

Just not sure where to go from here. I'd say half my pension pot has been added over the last 5 years, How do I get it into a fund that is going to work for me on this basis? I don't know where to start naively. I have read mixed things on funds, mixed things on using an advisor which takes 1.5% a year but does very little. Have I totally fucked myself over?

For context I have approx 30 odd years working ahead of me. Feel incredibly stupid to have assumed all along this was the norm as I am actually quite on top of my pension and have paid in the max percentage despite being under a cost of living crisis for a long time in a bit to actually retire at a normal age once older. Have I fucked myself right up?
 
EiffelTower said:
Hi all

I have had a bit of an awakening over the last few days and am extremely worried I have completely screwed myself over.

Years ago when I started in my current place I picked a couple of low risk investments on Aviva and didn't think much of it. I pay the max percentage in and get a decent contribution from my employer but have had literally zero growth in that time. It is effectively within £200 of what I have ever paid in. Naively I always thought everyone was in the same boat especially over the last six years since covid, wars, cost of living etc. Only when I mentioned this in passing to someone I work with were they incredulous about it and got up their pension pot to show me about £10,000 of growth (in a genuine way, certainly not meant as a brag)

Just not sure where to go from here. I'd say half my pension pot has been added over the last 5 years, How do I get it into a fund that is going to work for me on this basis? I don't know where to start naively. I have read mixed things on funds, mixed things on using an advisor which takes 1.5% a year but does very little. Have I totally fucked myself over?

For context I have approx 30 odd years working ahead of me. Feel incredibly stupid to have assumed all along this was the norm as I am actually quite on top of my pension and have paid in the max percentage despite being under a cost of living crisis for a long time in a bit to actually retire at a normal age once older. Have I fucked myself right up?
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Don't blame me if this goes wrong, but over a 20-30 year period, I would always go with a very high-risk / high-reward choice.

A typical worldwide tracker fund will achieve 8% pa over the long run. A low risk plan is what you move to when you're approaching retirement age so that you de-risk any sudden drops, as they will only just about beat inflation, as you've noticed.

And put as much in as you can, don't just add what your company suggests. I've got ~12 years of working left, and I'm putting 20% of my pay in, and my employers adds 5%. That 20% comes off before Tax and NI, so it gets topped up by about 27% which is better than nowt.
 
PTR said:
Don't blame me if this goes wrong, but over a 20-30 year period, I would always go with a very high-risk / high-reward choice.

A typical worldwide tracker fund will achieve 8% pa over the long run. A low risk plan is what you move to when you're approaching retirement age so that you de-risk any sudden drops, as they will only just about beat inflation, as you've noticed.

And put as much in as you can, don't just add what your company suggests. I've got ~12 years of working left, and I'm putting 20% of my pay in, and my employers adds 5%. That 20% comes off before Tax and NI, so it gets topped up by about 27% which is better than nowt.
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Is there any specific funds you would put in to get that 8%? Don't want specifics but just a common one everyone goes to. Would you diversify? Would you speak to someone professionally? Can Aviva help if I call them? I assume it is in their interets for me to have a pot that grows but do they advise on this type of stuff

Sorry for all the q's mate - feel like I've massively fucked up
 
EiffelTower said:
Is there any specific funds you would put in to get that 8%? Don't want specifics but just a common one everyone goes to. Would you diversify? Would you speak to someone professionally? Can Aviva help if I call them? I assume it is in their interets for me to have a pot that grows but do they advise on this type of stuff

Sorry for all the q's mate - feel like I've massively fucked up
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I've posted about this before, look on the ISA thread.
But generally mixed tracker funds with low fees and unmanaged do well over time. I've got a Vanguard Lifestrat 100% and a Fidelty Worldwide fund.
Your Aviva plan might only give you limited options though, worth checking what they allow you to do - might just be a "pick your risk from 1-5" type thing.
 
EiffelTower said:
Hi all

I have had a bit of an awakening over the last few days and am extremely worried I have completely screwed myself over.

Years ago when I started in my current place I picked a couple of low risk investments on Aviva and didn't think much of it. I pay the max percentage in and get a decent contribution from my employer but have had literally zero growth in that time. It is effectively within £200 of what I have ever paid in. Naively I always thought everyone was in the same boat especially over the last six years since covid, wars, cost of living etc. Only when I mentioned this in passing to someone I work with were they incredulous about it and got up their pension pot to show me about £10,000 of growth (in a genuine way, certainly not meant as a brag)

Just not sure where to go from here. I'd say half my pension pot has been added over the last 5 years, How do I get it into a fund that is going to work for me on this basis? I don't know where to start naively. I have read mixed things on funds, mixed things on using an advisor which takes 1.5% a year but does very little. Have I totally fucked myself over?

For context I have approx 30 odd years working ahead of me. Feel incredibly stupid to have assumed all along this was the norm as I am actually quite on top of my pension and have paid in the max percentage despite being under a cost of living crisis for a long time in a bit to actually retire at a normal age once older. Have I fucked myself right up?
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This is not advice or taking the piss but if your workmate is in the same scheme as you and has showed you how much his has gone up why don't you put your money in the same fund as him especially if you have 30 years to go?
Don't feel stupid, I never joined my first employers DB scheme so missed out on 8 years DB, now that's stupid 👍
 
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