Nice People Thread No. 15, a Cyber Summer

vivatifosi

I have a pension fund meeting tomorrow so have been doing some background pre-reading in anticipation. Some of it is about the general market. I don't have much to do with DCs as ours is a DB scheme, but found this surprising and unsurprising at the same time:

Annuity sales are down 87% since Pension Freedoms introduced. Those opting for flexibility have gone for cash instead.

Am I alone in being depressed by this?

silvercar

vivatifosi wrote: »

I have a pension fund meeting tomorrow so have been doing some background pre-reading in anticipation. Some of it is about the general market. I don't have much to do with DCs as ours is a DB scheme, but found this surprising and unsurprising at the same time:

Annuity sales are down 87% since Pension Freedoms introduced. Those opting for flexibility have gone for cash instead.

Am I alone in being depressed by this?

Let's hope people are doing something sensible with the cash rather than blowing it all on a round the world cruise.

I suspect that a lot of people are needing the cash to clear the shortfall on endowment policies to clear mortgages. Or there is a general distrust of annuities.

michaels

vivatifosi wrote: »

I have a pension fund meeting tomorrow so have been doing some background pre-reading in anticipation. Some of it is about the general market. I don't have much to do with DCs as ours is a DB scheme, but found this surprising and unsurprising at the same time:

Annuity sales are down 87% since Pension Freedoms introduced. Those opting for flexibility have gone for cash instead.

Am I alone in being depressed by this?

Good to see a well informed public are taking a short position on bonds (after all as Gen often bangs on about the only way interest rates can go is up and therefore long bond prices will fall) and looking to keep their money in cash in order to buy an income for life later and obtain a much better overall pension payout.

zagubov

Never mind emails being sent to the wrong people. There's a huge number of organisations whose website hosting companies have accidentally deleted them. One company's even deleted itself. I hope they all had backup strategies as good as the NPs!

Generali

silvercar wrote: »

Let's hope people are doing something sensible with the cash rather than blowing it all on a round the world cruise.

I suspect that a lot of people are needing the cash to clear the shortfall on endowment policies to clear mortgages. Or there is a general distrust of annuities.

I think there's a distrust of the financial services system, rightly IMHO, that manifests itself in things like BTL and also in people taking their money out of annuities.

Also for many, an annuity is basically worthless as they'll earn far more on benefits. If I had spent a long time in a low paid job and was retiring I'd consider taking the cash and doing the house up and buying a couple of new cars, things that will last me 10-15 years and give a real uplift in lifestyle. After all, the Government will make good on a large chunk of my income so why not?

Cradle to grave innit.

silvercar

Generali wrote: »

I think there's a distrust of the financial services system, rightly IMHO, that manifests itself in things like BTL and also in people taking their money out of annuities.

Also for many, an annuity is basically worthless as they'll earn far more on benefits. If I had spent a long time in a low paid job and was retiring I'd consider taking the cash and doing the house up and buying a couple of new cars, things that will last me 10-15 years and give a real uplift in lifestyle. After all, the Government will make good on a large chunk of my income so why not?

Cradle to grave innit.

We were having this discussion recently.

Whereas the state pension may be sufficient in your latter years, when you are less likely to be travelling and gadding about in general, in early retirement your wants may be greater.

Generali

silvercar wrote: »

We were having this discussion recently.

Whereas the state pension may be sufficient in your latter years, when you are less likely to be travelling and gadding about in general, in early retirement your wants may be greater.

In 'early retirement' maybe people should still be working these days.

IIRC, when the pension was brought in, life expectancy at retirement age was 18 months. The pension, which has a trillion quid cost at least stacked up, was not meant to give people a chance to bunk off work and swan around for a couple of decades before finally being in an actual position that they can't work.

If someone can work and can't afford not to why should we pay their way just because they don't fancy it? I don't see the difference between someone being 18 and 70 on that score.

Using up the cash from your savings early makes sense but so does a retirement system that insists people work while they can given modern healthcare.

PasturesNew

Mini oven + pizzas + pies = 4lbs weightloss.



I should eat more pizza, lose more weight! Although maybe it was the cheesecakes, jaffa cakes and sweeties that caused the loss.

Under 9stone now.

oldandhappy

Under 9stone now PN. I do not look at all good at that weight but then I am 1.73 metres thats about 5ft 8"...I guess you are a midget then...

you know I am joking liteweight

PasturesNew

oldandhappy wrote: »

I am 1.73 metres thats about 5ft 8"...I guess you are a midget then...

Yes, a midget
5'1"