pension now

82much

Keep reading about a disaster looming for the country!

So in light of this for someone wanting to start drawing their pension would it be best to go for an anniuty to safeguard the pot rather than drawdown which could potentially fall if the SM does a wobbly?
TIA

dunstonh

Keep reading about a disaster looming for the country!

What fiction do you enjoy?

So in light of this for someone wanting to start drawing their pension would it be best to go for an anniuty to safeguard the pot rather than drawdown which could potentially fall if the SM does a wobbly?

Which stockmarket are you referring to?

atush

The Disaster looming isn't a problem with pensions, but more like 2/3 of adults in the UK are not currently saving for retirement- that is the disaster.

Apart from that, we had a disaster (the credit crunch, bank failure, QE, etc) and that is what is causing the annuity rates to be so low.

82much

dunstonh
Emails coming from various sources keep saying we are in for a shock due to govt debt. Don't know how far to believe it but I don't like to put head too far in sand!
UK stockmarket

grey_gym_sock

the UK government debt situation could play out in a few different ways. but it'll take a few years at least for much to happen. and the worse scenarios wouldn't necessarily be bad for the stock market. for 1 thing, listed companies are much less heavily indebted than the government is.

stock markets are usually racing up or down. if you go for income drawdown, you need to be prepared to live with that. but i don't think it's much riskier than it usually is at present.

there is always a real possibility that your income from drawdown will fall. if you'll be spending all the income you draw, and have no way to replace it if it falls, then an annuity may be safer. if you have more room for manoeuvre, drawdown may be a better bet, since annuity rates are rather low now (until you get some way into your 70s).

dunstonh

Emails coming from various sources keep saying we are in for a shock due to govt debt.

Put them in the same place as your viagra and nigerian prince emails.

UK stockmarket

There is more to life than the UK stockmarket. It is actually very unusual for anyone to be heavy in the UK. That said, the country has been in a worse position before and turned it around. Nothing to suggest it cannot do it again.

82much

thanks guys. The FA recommended the drawdown way and he didn't seem worried about the future at present but just thought I'd get views on here before committing to anything.

ps I always try to help out the Nigerian chaps - they are so polite!

atush

82, you need a better spam filter.

and don't see an FA, see an IFA.

jamesd

Ignore those emails. They are probably the sort of scam emails that try to get you to invest in dubious things like foreign property.

There's absolutely no reason to stick to just the UK stock market or to just stock markets when there are also bond and other markets around. A broad mixture of global investments is the way to go, not a very high UK shares concentration.