Safe Draw Down pension company

ajcmather

I want to move my draw down pension to a company that does not have huge liabilities if there is a major disaster, e.g. the Thwaites glacier breaks off and world sea levels rise by 2 feet or the Yellowstone super volcano goes pop. Any suggestions.

artyboy

ajcmather said:

I want to move my draw down pension to a company that does not have huge liabilities if there is a major disaster, e.g. the Thwaites glacier breaks off and world sea levels rise by 2 feet or the Yellowstone super volcano goes pop. Any suggestions.

Where to start with this one....

Ok let's keep it simple. Unless you are holding all your pension funds as uninvested cash, the company administering your pension is irrelevant to the risks you're talking about. The risk sits with the funds or investments themselves, and that doesn't change just by moving pension provider.

What, precisely, is your pension currently invested IN (as opposed to who is it invested WITH)?

Albermarle

ajcmather said:

I want to move my draw down pension to a company that does not have huge liabilities if there is a major disaster, e.g. the Thwaites glacier breaks off and world sea levels rise by 2 feet or the Yellowstone super volcano goes pop. Any suggestions.

The pension provider will not have much liabilities at all. They are simply providing an administrative service.

Regarding any investments that you choose to hold within the pension, they will be affected differently by different world events.

dunstonh

I want to move my draw down pension to a company that does not have huge liabilities if there is a major disaster, e.g. the Thwaites glacier breaks off and world sea levels rise by 2 feet or the Yellowstone super volcano goes pop. Any suggestions.

Pension providers nowadays are just administrators handling the admin.  You don't invest in the fund offered by the insurer with modern plans.  That method is only still used on legacy plans from a previous era.   

The investments you select are where the risk is and with over 30,000 different investment options on modern plans (and near infinite combinations), you can pick what you like.

Being worried about extreme events that happen once every 600,000 years or thereabouts then it is going to be hard to find any suitable investment that would satisfy you.   The odds given by USGS for a super eruption in Yellowstone are lower than being hit by a civilisation ending asteroid.    If you are investing with those odds being a factor then its going to be hard to satisfy you with any solution.

westv

Don't forget the super tsunami from the collapse of La Palma island.

ajcmather

I haven't forgotten La Palma or a large asteroid, just wondering if there is any way to safeguard hard earned pension funds from natural or man made e.g. nuclear war, disaster.. 

eastcorkram

I'd have thought , in nuclear war, your pension will be the least of your worries.

artyboy

ajcmather said:

I haven't forgotten La Palma or a large asteroid, just wondering if there is any way to safeguard hard earned pension funds from natural or man made e.g. nuclear war, disaster.. 

Withdraw it all. You might take a hit on tax but hopefully there will be enough left to buy a few acres of woodland, build an underground bunker, and fill it with tinned foods and bottled water. If your portfolio currently has an ESG element, you might also want to consider a bow and arrow, some solar panels/windmill and a small water purification plant to go with that.

Or you could just accept there are some things not worth worrying about because you can't realistically plan for them. Then say the serenity prayer to yourself 10 times, and google the Tom Lehrer classic "We will all go together when we go"

Bianchiintenso

artyboy said:

ajcmather said:

I haven't forgotten La Palma or a large asteroid, just wondering if there is any way to safeguard hard earned pension funds from natural or man made e.g. nuclear war, disaster.. 

Withdraw it all. You might take a hit on tax but hopefully there will be enough left to buy a few acres of woodland, build an underground bunker, and fill it with tinned foods and bottled water. If your portfolio currently has an ESG element, you might also want to consider a bow and arrow, some solar panels/windmill and a small water purification plant to go with that.

Or you could just accept there are some things not worth worrying about because you can't realistically plan for them. Then say the serenity prayer to yourself 10 times, and google the Tom Lehrer classic "We will all go together when we go"

and save something for a roll of tinfoil

ajcmather

If we all get passed 2025 intact I will relax.

LHW99

If there is a significant sea-level rise, its not the pension providers but the internet servers that may have problems (don't think they like working underwater) so actually getting the money out rather than losing it all.

Possibly a strong safe under the bed with plenty of cash / gold coins (or baked beans) would serve.