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

green_man

PParka said:

I see this drop as an opportunity to buy low.  I've increase my pension contribution to 60%. 

Yes, same here.  I am retired, so different scenario, but have a significant slice in cash currently (30%), so on Monday I put £60k back into the market (50k in HSBC global strategy, and 10k in a smaller company IT). If markets fall another 10% I’ll put another slice in.

bostonerimus

The UK has the lowest state pension in the developed world and a far greater reliance on private pensions than other countries. Now that those private pensions are increasingly DC based the UK retiree will be far more sensitive to inflation and stock market volatility than their counterparts in many other countries. It will be interesting how the changes to the UK pension system work out if we see a really deep recession and inflation.

SouthCoastBoy

I wonder if anybody who transferred from a db pension to a dc pension now wish they hadn't?

Kim1965

SouthCoastBoy said:

I wonder if anybody who transferred from a db pension to a dc pension now wish they hadn't?

Have to say, the forum has been quiet regarding db transfer "outrage" the last month. Annuities are being talked about too.
 I am sure there are people regretting selling off the family silver. 

bostonerimus

SouthCoastBoy said:

I wonder if anybody who transferred from a db pension to a dc pension now wish they hadn't?

In 2013 I went from DC to DB, I'm now very glad I did as I get a cheque every month and an annual inflation adjustment irrespective of what's happening to the markets. That's where annuities and DB pensions have it all over the DC approach.

The people who will be most hurt by an extended downturn are those recent DC retirees with low cash reserves who have to sell funds into a down market. They probably won't recover from that and will have to live on less income than they planned.

westv

bostonerimus said:

SouthCoastBoy said:

I wonder if anybody who transferred from a db pension to a dc pension now wish they hadn't?

In 2013 I went from DC to DB, I'm now very glad I did as I get a cheque every month and an annual inflation adjustment irrespective of what's happening to the markets. That's where annuities and DB pensions have it all over the DC approach.

I would be a bit annoyed if I got something as old fashioned as a cheque every month! 

sheslookinhot

SouthCoastBoy said:

I wonder if anybody who transferred from a db pension to a dc pension now wish they hadn't?

My OH is currently in the process of transferring a DB pension to a DC pension.

bostonerimus

westv said:

bostonerimus said:

SouthCoastBoy said:

I wonder if anybody who transferred from a db pension to a dc pension now wish they hadn't?

In 2013 I went from DC to DB, I'm now very glad I did as I get a cheque every month and an annual inflation adjustment irrespective of what's happening to the markets. That's where annuities and DB pensions have it all over the DC approach.

I would be a bit annoyed if I got something as old fashioned as a cheque every month! 

I'd never be annoyed with someone giving me money, but OK, the pension actually gets directly deposited to my bank account.

bostonerimus

sheslookinhot said:

SouthCoastBoy said:

I wonder if anybody who transferred from a db pension to a dc pension now wish they hadn't?

My OH is currently in the process of transferring a DB pension to a DC pension.

I assume you have a well thought out plan of how to invest, manage and eventually spend that DC pension. Going from DB to DC involves taking on more risk and a lot more responsibility.

JoeCrystal

Kim1965 said:

Have to say, the forum has been quiet regarding db transfer "outrage" the last month. Annuities are being talked about too.

I feel that it is mainly replaced by "outrage" and "concern" about the drops in the pension pot as if it was a total surprise...