My Pension looks rubbish

sandsy

It's basically telling you that the fund you're invested in is expected to produce year on year returns less than the rate of inflation over the foreseeable future.


This appears to be compounded by the lack of any assumption on earnings growth.

Thrugelmir

You'll need to increase your own contributions whenever you can. The impact of inflation is the one thing that many people underestimate when saving for a pension. There's no secret to obtaining a good pension other than minimising fees paid and maximising contributions. The more you can save earlier the higher the pension that you'll likely to receive.

ajsexton

Remember that a lot of pension estimates show it terms of today's money so your pension may well be a lot more than £3100, but after inflation is taken into account (~40 years at 2.5%) it would be roughly equivalent today at £3100.

I make 40 years inflation 2.69 so the pension might well be about £8,300 and the pot more like 287K

Edit::

A quick shufty based on that inflation rate and assuming no increase in payment (which appears to be what the OP mentioned) then I get their estimated growth rate to be about 4.5%

silverwhistle

Thrugelmir wrote: »

There's no secret to obtaining a good pension other than minimising fees paid and maximising contributions.

Just out of interest OP, to save us the bother, what percentage management fee is your provider charging (for all charges including dealing costs)?

pheonix254

That fund is broken down as follows:

• Global Fixed Interest 24.16%
• UK Equities 22.26%
• UK Corporate Fixed Interest 17.81%
• International Equities 15.10%
• Property 10.77%
• Others, Managed funds & Investment Trusts 4.97%
• Cash & Cash Equivalents 3.70%
• UK Gilts 1.21%
• Alternative Trading Strategies 0.02%

Which gives you around 37% equities in your portfolio. If you're 28, I'd say that's playing it very very safe in terms of risk/return, (in which case you will end up with a low potential pension that you're more likely to recieve, as opposed to a higher value pension which may suffer more in the event of a market fall)

Personally, at 25, my pension is invested in multiple asset classes but equity to fixed income split is more like 80%/20%. However, for a £260pcm contribution my estimated pension is £10k p.a. at retirement in todays money. Which is still low, but I can live with that. Have a look at the different funds on offer to you, and pick something with a higher risk/reward profile if you're not happy. When you're young (comparitvely) you can afford to take on a higher risk because if you lose it all, you've still got time to save up some more for retirement. If you're 57, then you don't (so going all in on equities is less of a good idea.)

atush

ffacoffipawb wrote: »

Unless you are Max Clifford, in which case if you want to make money you're going to have to expose yourself.

Completely uncalled for, and in poor taste.

I am no fan of the man, but geez

atush

pheonix254 wrote: »

That fund is broken down as follows:

• Global Fixed Interest 24.16%
• UK Equities 22.26%
• UK Corporate Fixed Interest 17.81%
• International Equities 15.10%
• Property 10.77%
• Others, Managed funds & Investment Trusts 4.97%
• Cash & Cash Equivalents 3.70%
• UK Gilts 1.21%
• Alternative Trading Strategies 0.02%

Which gives you around 37% equities in your portfolio. If you're 28, I'd say that's playing it very very safe in terms of risk/return, (in which case you will end up with a low potential pension that you're more likely to recieve, as opposed to a higher value pension which may suffer more in the event of a market fall)

Personally, at 25, my pension is invested in multiple asset classes but equity to fixed income split is more like 80%/20%. However, for a £260pcm contribution my estimated pension is £10k p.a. at retirement in todays money. Which is still low, but I can live with that. Have a look at the different funds on offer to you, and pick something with a higher risk/reward profile if you're not happy. When you're young (comparitvely) you can afford to take on a higher risk because if you lose it all, you've still got time to save up some more for retirement. If you're 57, then you don't (so going all in on equities is less of a good idea.)

I agree, you are investing Very cautiously for one your age. And remember with employers contribs and tax relief, there would have to be a global disaster for you to lose money on your contributions.

My more equity exposed pensions are up 20% and more in t he the last year.

mgdavid

atush wrote: »

Completely uncalled for, and in poor taste.

I am no fan of the man, but geez

well I chortled, thought it was rather good in the circumstances.
No offence but maybe there's a grain of truth in the old saying that Americans don't really get the British sense of humour? (or maybe I just have a warped bloke-ish SOH).

atush

Nope I have lived here over 20 years now, so I understand British humor.

What I don't understand, is the male who would accept the whole no smoke w/o a fire thing, as it could all be rubbish? And ruin someone's life? Esp for celebrities of late? Seems to be a bit of a bandwagon going on, much of which is unsubstantiated, but the costs born by the accused very high.

a big backlash to the whole 'let him get away with it as he is cool/famous' thing of the past. Plus the putting todays standards on things that were common place 20-40 years ago. such as work place and other casual groping. was never a good thing, but was quite accepted back then as 'normal'.

So many recent cases have turned out to be false, or inconsistant.

Obv it is funny and you can have a laugh. If I was a man i'd think twice though. There for the love of god/chance you could be.

System

atush wrote: »

Nope I have lived here over 20 years now, so I understand British humor.

.

I don't think so. Never explain, just chuckle.