Capita workplace pension - huge loss

loveprada

I have a small workplace pension pot with Capita. They have lost almost half of it in the last couple of years. In fact its as if everything that was earned on my and my employer's contributions since I left that firm has been stripped away and now they just want to palm me off with a paltry annuity.  About 18 months ago I was trying to consolidate my pensions and at that point they completely obstructed it and I lost my nerve due to the big falls. How stupid was I as it has been to my detriment. I keep asking for information as to where my money was lost but they won't tell me. They have not sent me a statement since 2020. It is just one bizarre thing after another. Also I had asked them to keep my money invested instead of collecting a pension at age 60 but they ignored me and have done their stupid lifecycle thing whereby I'm assuming they have bought overpriced government bonds which have lost value due the increase in interest rates, but who knows what they've done as they're not telling me. Also I've noticed a massive drop in the number of units, which they've explained away stating the units they bought had a higher price than the units I previously had. However if they had purchased supposedly safer investments surely the price of the units should be lower and I should have more units not less?  Everything about this appears suspicious. What should I do? Is there a chance in hell I could get my money back by being aggressive with them and threatening to go to court? I am now 65 and I'm not working and do not have the opportunity to build up any further income. 

Prism

I didn't know that Capita provided workplace pensions? How are you communicating with them? Are you using an online portal to see your investments?

El_Torro

There seem to be various issues here.

Firstly what they invest in is decided by you, not Capita. If they have done lifestyling (i.e. selling equities and buying bonds as you get closer to your retirement age) then it's because that is the fund you chose. If you told them to switch it somewhere else and they didn't do it that's an issue. How did you tell them? Do you have an online account where you can view your investments? Or you told them on the phone? 

If the only option with Capita is to buy an annuity and not drawdown while staying invested then you can always switch provider. Ideally to one that lets you do what you want to do. 

As for the value of the investment: Stocks and shares investments have struggled in the last 18 months, especially those with high percentages of bonds and gilts. I don't know if a fund with 100% bonds would have lost 50% in value, on the face of it that sounds too much of a drop to me. 

As for your question about getting your money back: I don't see that happening, no matter how much you complain. Capita don't control the stock market, neither do they control what you choose to invest in. 

Marcon

loveprada said:

I have a small workplace pension pot with Capita. They have lost almost half of it in the last couple of years. In fact it's as if everything they earned on my and my employer's contributions since I left that firm have been stripped away and now they just want to palm me off with a paltry annuity.  About 18 months ago I was trying to consolidate my pensions and at that point they completely obstructed it and I lost my nerve due to the big falls. How stupid was I as it has been to my detriment. I keep asking for information as to where my money was lost but they won't tell me. They have not sent me a statement since 2020. It is just one bizarre thing after another. Also I had asked them to keep my money invested instead of collecting a pension at age 60 but they ignored me and have done their stupid lifecycle thing whereby I'm assuming they have bought overpriced government bonds which have lost value due the increase in interest rates, but who knows what they've done as they're not telling me. Also I've noticed a massive drop in the number of units, which they've explained away stating the units they bought had a higher price than the units I previously had. However if they had purchases supposedly safer investments surely the price of the units should be lower and I should have more units not less?  Everything about this appears suspicious. What should I do? Is there a chance in hell I could get my money back by being aggressive with them and threatening to go to court? I am now 65 and I'm not working and do not have the opportunity to build up any further income. 

Capita hasn't lost anything. The funds in which you are invested are the things which have lost value. You're the one who has chosen (albeit passively) to invest in lifestyle funds. If you wanted to change your choice of funds and/or retirement age, have you followed the necessary procedures to do so? Simply 'asking' them isn't likely to have given them the necessary instructions.

Do you have access to your account online? Given your comments about the number of units, it sounds as if you do - which could explain why you've not been sent a hard copy statement if the relevant information is available online.

Unless a pension provider has done something which is actually wrong (and there's nothing in your post to suggest that's the case), what sort of court action do you envisage? And do you have a clue what it would cost? You don't 'get your money back' just because you've made a poor choice of funds.

It sounds as if you are just thoroughly confused and fed up, so perhaps some free, impartial and expert help from https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-problems is your next step, so you can understand what's happened and why, and - importantly - change your choices for the future if that's what you still wish to do.

noclaf

Prism said:

I didn't know that Capita provided workplace pensions?

One of my old work pensions used Capita as the administrator so the portal, statements and  comms were managed by them, funds were mainly SW passives with a few random actives available too. Poor choice of expensive funds and a clunky user interface that appeared to belong in a different era. They didn't use Origo either so when I transferred out was all paper-based and numerous delays on their side processing the paperwork. So glad I transferred away.

loveprada

Prism said:

I didn't know that Capita provided workplace pensions? How are you communicating with them? Are you using an online portal to see your investments?

Yes, they administer workplace pensions, mostly of very big firms. I'm communicating via email. Their portal is really primitive, it only shows more or less only a current snapshot.

loveprada

El_Torro said:

There seem to be various issues here.

Firstly what they invest in is decided by you, not Capita. If they have done lifestyling (i.e. selling equities and buying bonds as you get closer to your retirement age) then it's because that is the fund you chose. If you told them to switch it somewhere else and they didn't do it that's an issue. How did you tell them? Do you have an online account where you can view your investments? Or you told them on the phone? 

If the only option with Capita is to buy an annuity and not drawdown while staying invested then you can always switch provider. Ideally to one that lets you do what you want to do. 

As for the value of the investment: Stocks and shares investments have struggled in the last 18 months, especially those with high percentages of bonds and gilts. I don't know if a fund with 100% bonds would have lost 50% in value, on the face of it that sounds too much of a drop to me. 

As for your question about getting your money back: I don't see that happening, no matter how much you complain. Capita don't control the stock market, neither do they control what you choose to invest in. 

I recall a few years ago I received some paperwork asking me what I want to do and how I want to receive the pension. I called them and discussed this and told them I wanted to remain invested.  I've been very busy with other issues in my family dealing with cancer and my mother's dementia. I admit I didn't grasp the reins to keep logging on to see what was going on. In the meantime the value of the pension pot has halved since January 22. I've been emailing them and they seem to have an attitude that either things are done their way or not at all. They're not even blaming me for not managing my pension. They've made it clear their intention was to have palmed me off at age 60 and I've been overstaying my welcome! I'm pretty sure I can move the money to another provider but I dont have a clue what to do with it. 

With regard to your last sentence, no they don't control the stock market but they have made bad decisions with my money. Probably moved it after making a loss, then moved it elsewhere and made more losses.  How would you explain the number of units issue?

Marcon

loveprada said:

El_Torro said:

There seem to be various issues here.

Firstly what they invest in is decided by you, not Capita. If they have done lifestyling (i.e. selling equities and buying bonds as you get closer to your retirement age) then it's because that is the fund you chose. If you told them to switch it somewhere else and they didn't do it that's an issue. How did you tell them? Do you have an online account where you can view your investments? Or you told them on the phone? 

If the only option with Capita is to buy an annuity and not drawdown while staying invested then you can always switch provider. Ideally to one that lets you do what you want to do. 

As for the value of the investment: Stocks and shares investments have struggled in the last 18 months, especially those with high percentages of bonds and gilts. I don't know if a fund with 100% bonds would have lost 50% in value, on the face of it that sounds too much of a drop to me. 

As for your question about getting your money back: I don't see that happening, no matter how much you complain. Capita don't control the stock market, neither do they control what you choose to invest in. 

I recall a few years ago I received some paperwork asking me what I want to do and how I want to receive the pension. I called them and discussed this and told them I wanted to remain invested.  I've been very busy with other issues in my family dealing with cancer and my mother's dementia. I admit I didn't grasp the reins to keep logging on to see what was going on. In the meantime the value of the pension pot has halved since January 22. I've been emailing them and they seem to have an attitude that either things are done their way or not at all. They're not even blaming me for not managing my pension. They've made it clear their intention was to have palmed me off at age 60 and I've been overstaying my welcome! I'm pretty sure I can move the money to another provider but I dont have a clue what to do with it. 

With regard to your last sentence, no they don't control the stock market but they have made bad decisions with my money. Probably moved it after making a loss, then moved it elsewhere and made more losses.  How would you explain the number of units issue?

They haven't made any decisions with your money. It's invested in the funds you have chosen. Capita are your scheme administrators, not your financial advisers.

Is this a trust based occupational scheme (if so it'll have trustees), as opposed to some sort of group personal pension?

loveprada

Marcon said:

loveprada said:

El_Torro said:

There seem to be various issues here.

Firstly what they invest in is decided by you, not Capita. If they have done lifestyling (i.e. selling equities and buying bonds as you get closer to your retirement age) then it's because that is the fund you chose. If you told them to switch it somewhere else and they didn't do it that's an issue. How did you tell them? Do you have an online account where you can view your investments? Or you told them on the phone? 

If the only option with Capita is to buy an annuity and not drawdown while staying invested then you can always switch provider. Ideally to one that lets you do what you want to do. 

As for the value of the investment: Stocks and shares investments have struggled in the last 18 months, especially those with high percentages of bonds and gilts. I don't know if a fund with 100% bonds would have lost 50% in value, on the face of it that sounds too much of a drop to me. 

As for your question about getting your money back: I don't see that happening, no matter how much you complain. Capita don't control the stock market, neither do they control what you choose to invest in. 

I recall a few years ago I received some paperwork asking me what I want to do and how I want to receive the pension. I called them and discussed this and told them I wanted to remain invested.  I've been very busy with other issues in my family dealing with cancer and my mother's dementia. I admit I didn't grasp the reins to keep logging on to see what was going on. In the meantime the value of the pension pot has halved since January 22. I've been emailing them and they seem to have an attitude that either things are done their way or not at all. They're not even blaming me for not managing my pension. They've made it clear their intention was to have palmed me off at age 60 and I've been overstaying my welcome! I'm pretty sure I can move the money to another provider but I dont have a clue what to do with it. 

With regard to your last sentence, no they don't control the stock market but they have made bad decisions with my money. Probably moved it after making a loss, then moved it elsewhere and made more losses.  How would you explain the number of units issue?

They haven't made any decisions with your money. It's invested in the funds you have chosen. Capita are your scheme administrators, not your financial advisers.

Is this a trust based occupational scheme (if so it'll have trustees), as opposed to some sort of group personal pension?

Thanks, yes I think it is trust based. I would have thought someone makes the decisions to switch, don't they have actuaries and connections in the city who they deal with? The transactions took place, somebody did it and made a bad call and obviously it will affect a lot of people, not just me.

QrizB

loveprada said:

In the meantime the value of the pension pot has halved since January 22.

This seems quite odd.

What fund(s) is your pension invested in? Have there been any changes over that period?

What was the value in January 2022, and what is the value today?

loveprada said:

I would have thought someone makes the decisions to switch, don't they have actuaries and connections in the city who they deal with? The transactions took place, somebody did it and made a bad call and obviously it will affect a lot of people, not just me.

Capita are not fund managers. If Capita moved your money, it will have been on your instructions - either explicitly, by telling them to do so, or implicitly, by agreeing to a pension lifestyle.

Marcon

loveprada said:

Marcon said:

loveprada said:

El_Torro said:

There seem to be various issues here.

Firstly what they invest in is decided by you, not Capita. If they have done lifestyling (i.e. selling equities and buying bonds as you get closer to your retirement age) then it's because that is the fund you chose. If you told them to switch it somewhere else and they didn't do it that's an issue. How did you tell them? Do you have an online account where you can view your investments? Or you told them on the phone? 

If the only option with Capita is to buy an annuity and not drawdown while staying invested then you can always switch provider. Ideally to one that lets you do what you want to do. 

As for the value of the investment: Stocks and shares investments have struggled in the last 18 months, especially those with high percentages of bonds and gilts. I don't know if a fund with 100% bonds would have lost 50% in value, on the face of it that sounds too much of a drop to me. 

As for your question about getting your money back: I don't see that happening, no matter how much you complain. Capita don't control the stock market, neither do they control what you choose to invest in. 

I recall a few years ago I received some paperwork asking me what I want to do and how I want to receive the pension. I called them and discussed this and told them I wanted to remain invested.  I've been very busy with other issues in my family dealing with cancer and my mother's dementia. I admit I didn't grasp the reins to keep logging on to see what was going on. In the meantime the value of the pension pot has halved since January 22. I've been emailing them and they seem to have an attitude that either things are done their way or not at all. They're not even blaming me for not managing my pension. They've made it clear their intention was to have palmed me off at age 60 and I've been overstaying my welcome! I'm pretty sure I can move the money to another provider but I dont have a clue what to do with it. 

With regard to your last sentence, no they don't control the stock market but they have made bad decisions with my money. Probably moved it after making a loss, then moved it elsewhere and made more losses.  How would you explain the number of units issue?

They haven't made any decisions with your money. It's invested in the funds you have chosen. Capita are your scheme administrators, not your financial advisers.

Is this a trust based occupational scheme (if so it'll have trustees), as opposed to some sort of group personal pension?

Thanks, yes I think it is trust based. I would have thought someone makes the decisions to switch, don't they have actuaries and connections in the city who they deal with? The transactions took place, somebody did it and made a bad call and obviously it will affect a lot of people, not just me.

If it's trust based, then it will have rules particular to your scheme - which might include a normal retirement age of 60. If so, that could explain why Capita were endeavouring to pay out your pension once you reached the age of 60 - they weren't 'palming you off', just trying to implement the scheme rules. 

Without knowing the funds in which you are invested, it's impossible to comment from an informed position - but you sound as if you opted for the default investment position (ie you didn't take any active involvement in making choices) and any fund switching would have happened automatically as you headed towards the scheme's retirement age.