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Retirement

Matt Hopkins said:
I would suggest most people have no idea what the split is in their pension, they'll be in the default fund in the works scheme and that's all they'll know, might not even know that.
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We recently changed our work pension provider and had a meeting to discuss the options. It was amazing how many people didn't have a clue where their pension was invested and just stuck with the default option.
 

Matt Hopkins said:
I would suggest most people have no idea what the split is in their pension, they'll be in the default fund in the works scheme and that's all they'll know, might not even know that.
Click to expand...
I moved mine to almost all equities having seen the standard funds do very little and since then it's shot up. I've got a long, long time until the retirement day comes though. It's a scandal that people aren't given better opportunities to educate themselves, or be forcibly educated, on financial matters. Most people won't even realise they can move their pension into different funds, or that the pot is even invested.
 
My main pension is split into 3 or 4 different funds. I'm not 100% on the split ref equities but each fund has a volatility number out of 10, 10 being the highest. When I retired I moved them all down from 6s and 7s to 3s and 4s. I did leave one small pot at an 8.
 
Horatio Moustache said:
I moved mine to almost all equities having seen the standard funds do very little and since then it's shot up. I've got a long, long time until the retirement day comes though. It's a scandal that people aren't given better opportunities to educate themselves, or be forcibly educated, on financial matters. Most people won't even realise they can move their pension into different funds, or that the pot is even invested.
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Said this for years instead of companies having Miss Menopause days, plant a sunflower day or blokes you're going to die early but no one gives a shit day they should be educating the staff on pensions
 
just swapped my entire allocation into a fund I would never have expected to use and thought would be quite tame.. an islamic fund :D
 
The said:
just swapped my entire allocation into a fund I would never have expected to use and thought would be quite tame.. an islamic fund :D
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The Islamic funds are just because they have no investments that generate interest as its prohibited under sharia law. NEST used to have one which was their only 100% equity fund, so loads used it just because of that. Then theyve found a workaround & dropped the equity allocation.
 
Horatio Moustache said:
I moved mine to almost all equities having seen the standard funds do very little and since then it's shot up. I've got a long, long time until the retirement day comes though. It's a scandal that people aren't given better opportunities to educate themselves, or be forcibly educated, on financial matters. Most people won't even realise they can move their pension into different funds, or that the pot is even invested.
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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.
 
42 said:
The Islamic funds are just because they have no investments that generate interest as its prohibited under sharia law. NEST used to have one which was their only 100% equity fund, so loads used it just because of that. Then theyve found a workaround & dropped the equity allocation.
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The NEST Sharia Fund was up about 50% over the year when my FA looked at it a few months back. She couldn't believe how well it had performed.
 
Ned Land said:
:lol: Exam marking/invigilating can be quite lucrative too.
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I quite fancy that as a side hustle. Is being thick as fuck a problem though 🤔
Matt Hopkins said:
I would suggest most people have no idea what the split is in their pension, they'll be in the default fund in the works scheme and that's all they'll know, might not even know that.
Click to expand...
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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Matt Hopkins said:
Said this for years instead of companies having Miss Menopause days, plant a sunflower day or blokes you're going to die early but no one gives a shit day they should be educating the staff on pensions
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Agreed. Also cover this, credit cards, loans and mortgages at school. We did an hour a week in "Tutorial" sessions. I can not remember what we did in it, but it was a waste of an hour. Even back as a kid I suggested to the teacher if it is supposed to be life skills, let's do first aid courses and about bank accounts.

I don't think it is in the interest of companies though. A few years ago, I found none of my colleagues really understood the pension, and these were bright people.

I spent ages going through the info booklet in detail until I really understood. Then I discovered a cumulative rounding down issue with the pension provider long term estimator that understated projected pension by thousands.

They were not interested. They want people to invest more for longer.
 
My work pension is thru jock widows. It was forecast to be worth 9700 when I'm 65 back in 2019. It's now forecast to be 21000. Presume that means it's going in the right direction?
 
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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Indeed. Retirement isn't the end of your investment. You could only be halfway through it.
 
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 agree. I cannot see any reason to cash in my medium / high risk investments on retirement, other than a couple of years money, given I might live another 30 years and need the investment growth.
 
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