Why do posters here have disproportionately higher than average pension funds...

[Deleted User]

Thrugelmir said:

doris540 said:

.Everything ive contributed to my company pension in last 12 months has been lost due to the markets 

Then you need a financial advisor. 

Does not follow. There is nothing particularly wrong with underperforming the market over short periods of time. 

BritishInvestor

Prism said:

Audaxer said:

Albermarle said:

If I was invested in super safe funds, then I'd imagine they would not still be 15% down after the Corona crash

Typical well known medium risk funds , such as Vanguard Life strategy 60 or HSBC global strategy balanced  are at almost exactly the same level as on Jan 1st ( minus 0.2% and minus 0.1 % respectively )

One with home bias and one without .

Apart from the bond content, both these funds have a greater percentage of value equity than growth equity. It seems that those portfolios with more higher risk growth funds have bounced back better since March than portfolios that contain more value equity.  

I wouldn't say that growth equities are higher risk than value equities. You would normally expect quality and growth companies to survive a downturn pretty well, whereas value equities which are usually pretty cyclical tend to struggle regardless of the fact that they are already cheap. 
Risk is all pretty subjective though. I would say that my portfolio of only growth based funds is lower risk than the index but others would look at it and disagree.

I think you'd have to look at where we are in the current cycle and also determine what you mean by riskier. As Morkdo has pointed out, small cap value has historically given greater returns yet this last decade has seen the complete opposite (for reasons which are often debated).

For the growth style of shares, what happens if:
1. They don't deliver on earnings growth that the market is fully pricing in?
2. Investors no longer want to pay so much for a share given the current measures (e.g. price to earnings etc).

Albermarle

£18k pa at sixty is far above the National average. 

Thanks Thruglemir, I didn't actually know that.
To buy a £18Kpa retirement income at age 60 rising with inflation , it would cost over half a million pounds .
So when you see these large pension figures mentioned on this forum , they do not necessarily translate into some kind of gold plated retirement . Comfortable yes ; well above average yes; but not yachts and 6 months holiday a year lifestyle . Unless of course the figure is Millions, rather than just one !

Gin_and_Milk

doris540 said:

I never said you were parasites its the system it just annoys alot of us in the private sector that our pensions are worth five times less on average .Everything ive contributed to my company pension in last 12 months has been lost due to the markets Public sector ones totally untouched. The public sector say their salaries are lower and the pension is a form of compensation. So if thats the case our wages should be five times more than the public sector wages...................never in a month of sundays . Parasites no , milk the system yes. One example large government dept many staff were claiming first class travel on the train for meetings in London it got to a point that it was cheaper for them to have their own coaches which they do now all kitted out tables the lot and go by road. Friend of mine husband in the FCO all their kids went to private school from day one till they went to uni all their fees paid by the taxpayer and all the travel etc. Can the average man in the street afford to pay Private school fees ...............exactly.. 

If I submitted a claim at work for first class rail fare, it would be refused flat out and stern words would be had.  You are not describing the average public sector worker, who also wouldn't be able to pay private school fees.    
You don't see us as parasites, but you describe us as milking the system.
I don't see much difference between the two myself.

german_keeper

Gin_and_Milk said:

doris540 said:

I never said you were parasites its the system it just annoys alot of us in the private sector that our pensions are worth five times less on average .Everything ive contributed to my company pension in last 12 months has been lost due to the markets Public sector ones totally untouched. The public sector say their salaries are lower and the pension is a form of compensation. So if thats the case our wages should be five times more than the public sector wages...................never in a month of sundays . Parasites no , milk the system yes. One example large government dept many staff were claiming first class travel on the train for meetings in London it got to a point that it was cheaper for them to have their own coaches which they do now all kitted out tables the lot and go by road. Friend of mine husband in the FCO all their kids went to private school from day one till they went to uni all their fees paid by the taxpayer and all the travel etc. Can the average man in the street afford to pay Private school fees ...............exactly.. 

If I submitted a claim at work for first class rail fare, it would be refused flat out and stern words would be had.  You are not describing the average public sector worker, who also wouldn't be able to pay private school fees.    
You don't see us as parasites, but you describe us as milking the system.
I don't see much difference between the two myself.

Apart from 4 weeks "cleaning" lettuces whilst I waited for a start date I have never worked in the private sector,so I have no idea what it is like. It always amazes me how many people who have never worked in the public sector consider themselves experts on what goes on there. 

garmeg

Prism said:

I'm thinking that you don't contribute enough then. If a private sector salary paid just 10% more than a public sector salary then you could choose to put all of that into a workplace pension or SIPP. Thats probably all it would take.

Need to pay at least 35% into a pension to match the public sector pension really.

pensionpawn

Prism said:

doris540 said:

I never said you were parasites its the system it just annoys alot of us in the private sector that our pensions are worth five times less on average .Everything ive contributed to my company pension in last 12 months has been lost due to the markets Public sector ones totally untouched. The public sector say their salaries are lower and the pension is a form of compensation. So if thats the case our wages should be five times more than the public sector wages...................never in a month of sundays . Parasites no , milk the system yes. One example large government dept many staff were claiming first class travel on the train for meetings in London it got to a point that it was cheaper for them to have their own coaches which they do now all kitted out tables the lot and go by road. Friend of mine husband in the FCO all their kids went to private school from day one till they went to uni all their fees paid by the taxpayer and all the travel etc. Can the average man in the street afford to pay Private school fees ...............exactly.. 

I'm thinking that you don't contribute enough then. If a private sector salary paid just 10% more than a public sector salary then you could choose to put all of that into a workplace pension or SIPP. Thats probably all it would take.

And if your pension is still down over the last 12 months then something is wrong. Most are up between 4% - 6%. Some are up over 15%

5.2%, not including contributions. Not great, but getting there...

Prism

garmeg said:

Prism said:

I'm thinking that you don't contribute enough then. If a private sector salary paid just 10% more than a public sector salary then you could choose to put all of that into a workplace pension or SIPP. Thats probably all it would take.

Need to pay at least 35% into a pension to match the public sector pension really.

Possibly but I would say with a standard contribution of 8%, plus an extra 10%, then over a full working career that should be plenty. 

Audaxer

Prism said:

Audaxer said:

Prism said:

doris540 said:

I never said you were parasites its the system it just annoys alot of us in the private sector that our pensions are worth five times less on average .Everything ive contributed to my company pension in last 12 months has been lost due to the markets Public sector ones totally untouched. The public sector say their salaries are lower and the pension is a form of compensation. So if thats the case our wages should be five times more than the public sector wages...................never in a month of sundays . Parasites no , milk the system yes. One example large government dept many staff were claiming first class travel on the train for meetings in London it got to a point that it was cheaper for them to have their own coaches which they do now all kitted out tables the lot and go by road. Friend of mine husband in the FCO all their kids went to private school from day one till they went to uni all their fees paid by the taxpayer and all the travel etc. Can the average man in the street afford to pay Private school fees ...............exactly.. 

And if your pension is still down over the last 12 months then something is wrong. Most are up between 4% - 6%. Some are up over 15%

They might simply have too much invested in the UK rather than mostly global. My UK equity income funds have suffered more than others, but I'm still hoping they recover to previous levels.

Maybe thats the bit thats wrong. Investing in UK income funds at all. It seems that shares prices nor dividends have held up during this crash.

I think there is still a place in retiree portfolios for some equity income funds, although dividends are being hit worse than in previous crashes. Maybe the equity income ITs that have managed to pay rising dividends for decades are a better bet to ensure the income continues through this crisis.

Albermarle

Prism said:

garmeg said:

Prism said:

I'm thinking that you don't contribute enough then. If a private sector salary paid just 10% more than a public sector salary then you could choose to put all of that into a workplace pension or SIPP. Thats probably all it would take.

Need to pay at least 35% into a pension to match the public sector pension really.

Possibly but I would say with a standard contribution of 8%, plus an extra 10%, then over a full working career that should be plenty. 

Most private sector pension schemes need regular one off top ups from the company to keep their head above water .