Will recent "events" cause a rethink of DC pensions?

Bostonerimus1

Stock markets have suddenly become very volatile. What does this mean for DC pension strategies in both the accumulation and spending phases? Those of us either retired, or close to it, have lived through the decline of the DB pension and rise of the DC pension based on individual exposure to equities and fixed income. The investment and withdrawal strategies have always included some nod to volatility, but after the UK bond crisis of a few years ago and the current fall in markets are you reassessing things...or is this all covered by your plan? 

SouthCoastBoy

For me, I think I will stick to my current plan. I've  never held bonds, just cash, and I have at least a 10 year cash buffer. 60% in equities, lost around 150k in the last 2 to 3 weeks, but hoping over the next 5 or so years that will be regained. My total portfolio in nominal terms is back to around where it was 12 to 18 mths ago.

Think the last few weeks means I will carry on working for a while yet.

Aylesbury_Duck

It hasn't changed my plan.  As things stand, this 'volatility' is a relatively small movement in a graph of the last five years.  I've only been taking pensions and investments seriously for 10 years and I've already experienced some reasonable ups and downs, but the general trend has been healthily up.  I expect that to be the same over the next 10 years so I'll just continue as I have been.

400ixl

Nope, a good strategy covers such events. This isn't the first such event and won't be the last.

Cobbler_tone

It’s just reminded me the true value of a good DB pension and can’t believe I considered transferring it at one point.
The markets are definitely up in the air but think the UK might do well out of it.

barnstar2077

Time to buy!

Hoenir

Perhaps there'll be a new fad called "Lifestyling".  Majority of people would prefer the more staid returns of a well managed portfolio. Than focus on minimising cutting costs to the bone while following the herd that bases their decision making on flawed social media commentary. 

Investing fads are cyclical. Always have been. Every new generation of investors believes that "This Time is Different".  Human nature being what it is , never the case. 

Marcon

Bostonerimus1 said:

Stock markets have suddenly become very volatile. 

I don't think that's anything new....

Bostonerimus1

It might be a good time to research Japan's lost decade. We might not be just looking at market volatility, we might be looking at years of low growth and poor returns. 

DRS1

From the heading I wondered if you were suggesting a revival in nice secure DB pension schemes to replace these scary roller coaster DC newcomers.  Don't think so.  You are on your own at the mercy of the markets.

squirrelpie

barnstar2077 said:

Time to buy!

Drip feed purchases at least ...