Dwindling Pension Fund (as with everyone) Do i carry on contributing?

Markneath

QrizB said:

doris540 said:

And all those in the public sector continue to sit totally unaffected whilst we see our pots plummet quicker than Norwich out the Premiership

Swings and roundabouts.

In 2021, VLS80 (as a passive-fund example from this list) rose 14.4%. I don't recall anyone saying "oh those poor public sector workers with their CPI-linked DB pensions".

And VLS80 is still up 28.5% over the past 5 years.

I think the majority of people would take a public sector pension any day of the week over the alternative. 

You generally need really good growth on dc pensions just to get close to a db pension.

My girlfriend doesn’t take pension’s seriously neither did my ex wife, they were both in public sector schemes and didn’t need too.

Leigh-Anne_60

dunstonh said

If you don't look, you don't see it.  If you don't see it,  you don't worry about it.  The best thing you can do in a negative period is close your eyes to your investments.

I’ve now deleted my Halifax app which shows my Scottish Widows..Not my main bank anyway so no real need to go in there. Will go back to my bi monthly checks only. Let’s see how long I last

Random47

Markneath said:

QrizB said:

doris540 said:

And all those in the public sector continue to sit totally unaffected whilst we see our pots plummet quicker than Norwich out the Premiership

Swings and roundabouts.

In 2021, VLS80 (as a passive-fund example from this list) rose 14.4%. I don't recall anyone saying "oh those poor public sector workers with their CPI-linked DB pensions".

And VLS80 is still up 28.5% over the past 5 years.

I think the majority of people would take a public sector pension any day of the week over the alternative. 

You generally need really good growth on dc pensions just to get close to a db pension.

My girlfriend doesn’t take pension’s seriously neither did my ex wife, they were both in public sector schemes and didn’t need too.

Working in the public sector does come with DB Pension.
HOWEVER, its not the only thing it comes with, try below inflation pay rises, if you even get one; 2012 to 2014 0% pay rise, 2015 1%. What did the private sector get ???
What about generally lower wages than private sector. What about the slashing of staff with the remaining picking up the task. 
Over the last 35 years I have worked in 5 Public sector roles, and interspersed this with private sector roles in blue chip companies and self employment. IMO they balance each other out in the end when you consider working conditions, pay rates, benefits (inc pensions), etc.
So to Doris540, if you are so envious of public sector DB pension, go and get a job in the NHS, Civil Service, Police, Local Government and live with the other not so good bits...
 

Workerdrone

I'm in a very similar position. 46 years old, 37k gross salary but putting £1400 a month into pension using sal sac (raising this every time I get a chance). No BTL. I'm down 17% since December from 250k.

It's not nice but I agree with the above sentiment. Now is absolutely the time to continue with contributions and hoover up those units at a lower price.

I know its hard not to look too often and also hard not to over analyse. My two ha'peth would be do nothing. Don't change your investments and risk turning a paper loss into a real one. Just hold tight.

This forum isn't awash with people screaming get out. It's full of level heads for the most part. I think you can take that as an aggregate indication that you'd be best to hold tight

YBR

Markneath said:

QrizB said:

I think the majority of people would take a public sector pension any day of the week over the alternative. 

You generally need really good growth on dc pensions just to get close to a db pension.

Or to contribute as much as goes into a DB pension.
I'm having to contribute 15% into my DB pension and my employer contributes 20%.
In contrast my colleagues in the DC scheme have their contributions matched up to 8% so many put no more than 8% in themselves. Apparently it's not worth putting in more than the company does (I'm trying to educate them but ...).

So 35% vs 16% total contributions - that's how to get close to a DB pension!

Workerdrone

YBR said:

Markneath said:

QrizB said:

I think the majority of people would take a public sector pension any day of the week over the alternative. 

You generally need really good growth on dc pensions just to get close to a db pension.

Or to contribute as much as goes into a DB pension.
I'm having to contribute 15% into my DB pension and my employer contributes 20%.
In contrast my colleagues in the DC scheme have their contributions matched up to 8% so many put no more than 8% in themselves. Apparently it's not worth putting in more than the company does (I'm trying to educate them but ...).

So 35% vs 16% total contributions - that's how to get close to a DB pension!

I started upping mine years ago after an IFA suggested to get close to the DB type scheme you would need 25%+ contribution (Although in hindsight that seems a bit low)

I'm currently at 40.3% combined contribution. I don't discuss it with my colleagues. Theres no point. They either think you're crazy or you have to endure the "You might die before your 60", or all the other excuses as to why they can't/won't do the same.

Yes I might die before I'm 60, but my wife and kids will be left without financial worries. Plus I quite like the feeling of saving and investing.

2nd_time_buyer

Maybe work backwards and ask how much you need in your DC pension pot? My gut feeling is that the markets will continue to fall for a while yet. On this basis, I am intending to de-risk most of my pot (i.e. putting into cash or bonds). However, I will continue to keep  contributing at around 50% of my salary for the 33.5% SS tax benefits. I can afford to do this as I think I have enough in final salary pension and property that I don't need to take the risk with DC investments and I wouldn't beat myself up too much if this was the bottom of the market. 

bostonerimus

doris540 said:

And all those in the public sector continue to sit totally unaffected whilst we see our pots plummet quicker than Norwich out the Premiership

Right now, insulation of pensions to some extent from market fluctuations looks like a good thing. So people in the private sector without DB benefits should be arguing for reform of their own pension arrangements. Seek to better your own situation.

Of course, when things are going well in the stock markets people like the freedom and the rosy projections attached to DC pensions. But private employers understood the risk and trouble associated with pensions and now that they've largely shifted that risk to employees I'm sure they are all a lot more comfortable in every way.

PParka

I see this drop as an opportunity to buy low.  I've increase my pension contribution to 60%.  It's salary sacrifice so I'm saving 32% in tax and NI to start with.
A colleague has just done the opposite and stopped their contributions all together.    They couldn't understand why I was contributing more.  The best analogy I could think of was "if you found a garage that was selling petrol for £1 per litre, would you fill your car up?"

eastcorkram

 The best analogy I could think of was "if you found a garage that was selling petrol for £1 per litre, would you fill your car up?"

Well, I wouldn't if I had enough in the tank for now, and I thought it was going to be 70p next week