Capita workplace pension - huge loss

Bostonerimus1

woolly_wombat said:

Bostonerimus1 said:

People approaching retirement will be switched into bond heavy funds as those are seen as less volatile than equities. However, the last year couple of years has seen interest rates skyrocket as central banks have risen rates to control inflation and in the UK bond prices have also been depressed by the performance of recent UK governments. So the pension pots of many UK retirees will have been hit and this is a double danger to their retirement if it comes close to the retirement date as this "sequence of return" loss will propagate to later years.

Not 50% down though surely.

It depends on how your money is being invested and how much is being charged in fees. You need to investigate and understand the reasons for your losses.

loveprada

woolly_wombat said:

Who was the employer?

A magic circle law firm but I wasn't there for long

loveprada

woolly_wombat said:

Bostonerimus1 said:

People approaching retirement will be switched into bond heavy funds as those are seen as less volatile than equities. However, the last year couple of years has seen interest rates skyrocket as central banks have risen rates to control inflation and in the UK bond prices have also been depressed by the performance of recent UK governments. So the pension pots of many UK retirees will have been hit and this is a double danger to their retirement if it comes close to the retirement date as this "sequence of return" loss will propagate to later years.

Not 50% down though surely.

As at January 22 it was over £21k. Now it is around £13k. I'm basing this on my conversation with them in January/February 22 where someone told me they had already lost 20% of the value so I'm guessing it was worth more than £21k towards late 2021.

Bostonerimus1

loveprada said:

woolly_wombat said:

Bostonerimus1 said:

People approaching retirement will be switched into bond heavy funds as those are seen as less volatile than equities. However, the last year couple of years has seen interest rates skyrocket as central banks have risen rates to control inflation and in the UK bond prices have also been depressed by the performance of recent UK governments. So the pension pots of many UK retirees will have been hit and this is a double danger to their retirement if it comes close to the retirement date as this "sequence of return" loss will propagate to later years.

Not 50% down though surely.

As at January 22 it was over £21k. Now it is around £13k. I'm basing this on my conversation with them in January/February 22 where someone told me they had already lost 20% of the value so I'm guessing it was worth more than £21k towards late 2021.

If you were invested in long term gilts and bonds you could have easily seen losses on that scale over the last few years because of increases in interest rates and the shock to the bond markets caused by the Truss Government. I imagine you are not alone. You need to find out how your money is being invested.

QrizB

Bostonerimus1 said:

You need to find out how your money is being invested.

We know that; it was quoted a page or two back.

25% cash, 75% gilts/bonds.

Bostonerimus1

QrizB said:

Bostonerimus1 said:

You need to find out how your money is being invested.

We know that; it was quoted a page or two back.

25% cash, 75% gilts/bonds.

OK, so that explains the large losses. Lots of people will be in a similar situation.

loveprada

Bostonerimus1 said:

QrizB said:

Bostonerimus1 said:

You need to find out how your money is being invested.

We know that; it was quoted a page or two back.

25% cash, 75% gilts/bonds.

OK, so that explains the large losses. Lots of people will be in a similar situation.

Bostonerimus1 said:

QrizB said:

Bostonerimus1 said:

You need to find out how your money is being invested.

We know that; it was quoted a page or two back.

25% cash, 75% gilts/bonds.

OK, so that explains the large losses. Lots of people will be in a similar situation.

Am I supposed to just take the hit? Is there any point in raising a complaint?

QrizB

loveprada said:

Am I supposed to just take the hit? Is there any point in raising a complaint?

Not wishing to sound unsympathetic, but yes I think you need to take the hit.

What specifically would you complain about?

You were in a lifestyle scheme that was designed to let you buy an annuity at your declared pension age. Capita managed your funds to achieve this end and your funds are still invested in a way that lets you but an annuity.

Exactly how have they failed to follow your instructions?

Back on page 1 of this thread you wrote:

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.

Can you prove that this happened, and that Capita were happy to take your instructions verbally over the phone? Or dod Capita send out some paperwork for you to complete?

loveprada

QrizB said:

loveprada said:

Am I supposed to just take the hit? Is there any point in raising a complaint?

Not wishing to sound unsympathetic, but yes I think you need to take the hit.

What specifically would you complain about?

You were in a lifestyle scheme that was designed to let you buy an annuity at your declared pension age. Capita managed your funds to achieve this end and your funds are still invested in a way that lets you but an annuity.

Exactly how have they failed to follow your instructions?

Back on page 1 of this thread you wrote:

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.

Can you prove that this happened, and that Capita were happy to take your instructions verbally over the phone? Or dod Capita send out some paperwork for you to complete?

There is a clause in the paperwork saying "If you no longer intend to draw your benefits at your currently selected retirement date please contact the Capita administration team on... (phone number)". So what was the point of it if they dont follow through? They haven't sent me a statement in 3 years or even bothered to notify me what they're doing with my money but it has been constantly changing from one fund to another from what they've now sent me. They're just inflicting whatever they've wanted to do on me. No I doubt I can actually prove this happened. It's their word against mine.

Bostonerimus1

There's fault to shared here. The pension company doesn't really care what happens to the OP's money, they just apply some accepted algorithm, take their fees and shrug. If the OP asked for another investment strategy and were ignored then the pension company has some questions to answer, but so does the OP if they were silent when they didn't receive any statements for 3 years.