BOE & Pensions Collapse?

L9XSS

dunstonh said:

digging a bit deeper the funding had dropped by circa 350 million from 2020 to 2021 due to less than anticipated growth...

Snapshot dates would be important.  Winter 2020 had the coronavirus falls.
Late 2021 saw the start of the gilts falling and tech stocks going into major decline.

£350m to some DB schemes is a drop in the ocean.  To others it could be very serious.

March 2020 to March 2021, surplus funding dropped 32% over this period.....

Rory101

Albermarle said:

Assuming your pot is a standard DC pension, it is affected by share and bond movements, but no possibility it will suddenly collapse to nothing.
It is a complicated technical issue relating only to some private sector DB( final salary ) schemes.

Although, nearing retirement, one of my bond funds being down near 40% is pretty painful.

L9XSS

And my DB pension was “gold plated” allegedly......so won’t be entering the world of retirement anytime soon, my Vanguard SIPP rightly or wrongly has been in cash since November......my graphs show I made the right call, yes inflation etc etc....but that wave I rode and got off, for a while anyway, I’m not timing the market, more preserving what I have.

p00hsticks

LHW99 said:

we also have a bit of a dilemma that my OH doesn’t work and therefore all the pension is mine really. 

Even if she is a non-earner you could start a pension for her and put in £2880 pa and she would get the tax relief paid in on top. Doesn't reduce your tax bill, but helps to equalise provision a bit. You could also fill her ISA / LISA as well as your own.

And keep an eye on her (and your) State Pension forecast to make sure she is either getting NI credits (e.g via Child Benefit) or taking any opportunity to make voluntary payments if needed so that she wil lget a full State Pension when the time comes.

Jaguar_Skills

p00hsticks said:

LHW99 said:

we also have a bit of a dilemma that my OH doesn’t work and therefore all the pension is mine really. 

Even if she is a non-earner you could start a pension for her and put in £2880 pa and she would get the tax relief paid in on top. Doesn't reduce your tax bill, but helps to equalise provision a bit. You could also fill her ISA / LISA as well as your own.

And keep an eye on her (and your) State Pension forecast to make sure she is either getting NI credits (e.g via Child Benefit) or taking any opportunity to make voluntary payments if needed so that she wil lget a full State Pension when the time comes.

Not sure how we check this? But would be good to know .

SMcGill

But when one does have a couple of Private Sector DB pensions, due to start paying out in a few years....it's a little worrying!!!

I’m 59, with my USS pension due to start next autumn and my rail pension 5 years later. I stopped work 6 months ago and I’m definitely twitching …

HappyHarry

L9XSS said:

And my DB pension was “gold plated” allegedly......so won’t be entering the world of retirement anytime soon, my Vanguard SIPP rightly or wrongly has been in cash since November......my graphs show I made the right call, yes inflation etc etc....but that wave I rode and got off, for a while anyway, I’m not timing the market, more preserving what I have.

No reason for that to have changed - DB pensions have plenty of protection.

Albermarle

Jaguar_Skills said:

p00hsticks said:

LHW99 said:

we also have a bit of a dilemma that my OH doesn’t work and therefore all the pension is mine really. 

Even if she is a non-earner you could start a pension for her and put in £2880 pa and she would get the tax relief paid in on top. Doesn't reduce your tax bill, but helps to equalise provision a bit. You could also fill her ISA / LISA as well as your own.

And keep an eye on her (and your) State Pension forecast to make sure she is either getting NI credits (e.g via Child Benefit) or taking any opportunity to make voluntary payments if needed so that she wil lget a full State Pension when the time comes.

Not sure how we check this? But would be good to know .

Check your State Pension forecast - GOV.UK (www.gov.uk)

Jaguar_Skills

Albermarle said:

Jaguar_Skills said:

p00hsticks said:

LHW99 said:

we also have a bit of a dilemma that my OH doesn’t work and therefore all the pension is mine really. 

Even if she is a non-earner you could start a pension for her and put in £2880 pa and she would get the tax relief paid in on top. Doesn't reduce your tax bill, but helps to equalise provision a bit. You could also fill her ISA / LISA as well as your own.

And keep an eye on her (and your) State Pension forecast to make sure she is either getting NI credits (e.g via Child Benefit) or taking any opportunity to make voluntary payments if needed so that she wil lget a full State Pension when the time comes.

Not sure how we check this? But would be good to know .

Check your State Pension forecast - GOV.UK (www.gov.uk)

Thanks, just checked and she is entitled to £145 per week and I am entitled to £185 it looks like.

Rory101

L9XSS said:

.... my Vanguard SIPP rightly or wrongly has been in cash since November......my graphs show I made the right call, yes inflation etc etc....but that wave I rode and got off, for a while anyway, I’m not timing the market, more preserving what I have.

That was inspired, or lucky, timing - I wish I could go back to last November.  I was around 50/50 cash anyway and that seemed too much but didn't seriously consider the bonds issues - I thought they'd just bobble along.