Transfer out are we missing something

Andrew31

Bravepants said:

I'm just waiting for the swathe of people who will try to claim some sort of compensation for having been "mis-sold" a DB pension buy-out! This week's correction is just the sort of event that would trigger it!

Im pretty sure that any good IFA would have simulated and explained market crashes a lot bigger than this one.   Those that didn't probably deserve a complaint. 

Nebulous2

Bravepants said:

I'm just waiting for the swathe of people who will try to claim some sort of compensation for having been "mis-sold" a DB pension buy-out! This week's correction is just the sort of event that would trigger it!

It was happening before this drop. Only one IFA with full cover. 

https://www.standard.co.uk/business/greedy-advisers-wrongly-transferred-40bn-of-direct-benefit-pensions-a4373301.html?amp

Albermarle

For the British Steel people , the worst part was that they were transferred in some cases to very bad investments/SIPPS that were largely unregulated . If they had transferred to a more mainstream SIPP, with regulated investments and low fees it would not have been so bad, and may have worked OK for more of them. 

tigerspill

Bhodigirl said:

Hi Thanks for your replies.  They are helpful and appreciated. Hubby and I now work at the same place ,I joined well after the dB closed, that’s how I know what people are doing with there pensions as everyone over the age of  55 likes to talk about it myself included.  One person I know with a pot of 400k said his  pot made 12k in the last 12 months. I am surprised how so many people are getting advice to move, there is one particular advisor who seems to have a number of clients from our place and they all seem happy. That said most of them have moved in the last 5 years and maybe not looking st the long term. Had not thought about going at 60 but now reading this it’s making me think. Both hubby and I will get full state pension. Once again thanks for taking the time to reply 

So 12K on 400K is 3%ish.  That is not a fantastic return.  My Life Strategy 40 is up 9% in the last year and that includes the fall in the last week.  It was up 12.8% before the drop.  And VLS 40 would be considered lower risk.
I would be very unhappy with 3% in the past year.

Bhodigirl

Scary stuff, we are so pleased we have not  been tempted now to move, theres rumblings  of people losing significant sums last week,  We are going to take german_keepers advice and put a bit more in our DC pots while we are working, we have been paying  the mortgage off but thats just about done so should be able to pay a bit more in now. We have fouind these comments very informative and interesting, Thank you

MarkCarnage

Scary stuff, we are so pleased we have not  been tempted now to move, theres rumblings  of people losing significant sums last week

Mainstream SIPP/personal pension portfolios will have fallen in value between 5-15% last week, depending on asset allocations and fund/stock selections. 

Are these 'significant sums'? Not in the context of long term market behaviour. It will only take the value of the portfolios back to where they were anywhere between 3 and 12 months ago in most cases.

Have they 'lost' this money? Only if they jump ship, sell into cash and don't go back in again. It does annoy me the term 'losing money'. You don't lose it until you crystallise the loss. It's mark to market on the portfolio. Same as you haven't gained until you crystallise it. The income from your portfolio is the only known and permanent component of your return until you sell.