What do people mean by "pension value"?

DRS1

MyRealNameToo said:

coyrls said:

MyRealNameToo said:

MR_Johnson67 said:

On other threads I read stuff like

My private pension value is approx £171K

Do they mean they get £171K annually? 

In principle they could, there are certainly people with pensions of that size and larger however more likely they are saying what the value of the whole pot is, which makes a lot of sense when it comes to DC as thats all it is (a pot) and can be applied to DB pensions but is more merky in meaning given a DB is a promise of payment not a fixed value pot and how you calculate its ultimate worth varies heavily as market and longevity assumptions change etc and potentially the reason you are asking for. 

I think it's very unlikely that there are people contributing to this forum that have pensions of £171K pa or more.

Why do you think that @coyrls?

I have no proof eitherway but suspect at least some members are very well off. 

Maybe someone should start a "How big is your pension" poll?

I suspect that the LTA would have something to do with the pension income of high earners being less than it used to be.  In the good old days when you could have 2/3rds of unrestricted Final Remuneration all you needed was Final Remuneration of £300k to get £200k pa pension.  Then they capped it and then they brought in the LTA.  What level of annuity could you buy with a pot of just over £1million? £70kpa?  Even if you go for a level annuity and wait till you're 75 you're not going to get £171k pa.

I know the LTA has gone but it was in place for long enough to restrict a lot of current pensions.

Silvertabby

saucer said:

Silvertabby said:

saucer said:

Or in public sector pensions it is an estimate of how much you would have to pay for a guaranteed annual pension to a particular level (an annuity).

No, the 'notional' value of a public sector pension is 20 X the annual pension plus 1 X any automatic lump sum.

This would be used in commutation calculations etc, but not more complicated procedures such as a CETV (particularly on divorce) when other factors come in to play.

I stand corrected. However in NHS Total Reward Statement there is an equivalent annuity cost. 

That's probably just to tell you how generous the NHS scheme is!  

coyrls

MyRealNameToo said:

coyrls said:

MyRealNameToo said:

MR_Johnson67 said:

On other threads I read stuff like

My private pension value is approx £171K

Do they mean they get £171K annually? 

In principle they could, there are certainly people with pensions of that size and larger however more likely they are saying what the value of the whole pot is, which makes a lot of sense when it comes to DC as thats all it is (a pot) and can be applied to DB pensions but is more merky in meaning given a DB is a promise of payment not a fixed value pot and how you calculate its ultimate worth varies heavily as market and longevity assumptions change etc and potentially the reason you are asking for. 

I think it's very unlikely that there are people contributing to this forum that have pensions of £171K pa or more.

Why do you think that @coyrls?

I have no proof eitherway but suspect at least some members are very well off. 

I am willing to be proved wrong, but £171K of pension income (not total income) must be very very rare (I did try to find some relevant statistics but failed) and my guess would be that anybody with that sort of pension income would be vanishingly unlikely to be contributing to this forum.

MeteredOut

coyrls said:

MyRealNameToo said:

coyrls said:

MyRealNameToo said:

MR_Johnson67 said:

On other threads I read stuff like

My private pension value is approx £171K

Do they mean they get £171K annually? 

In principle they could, there are certainly people with pensions of that size and larger however more likely they are saying what the value of the whole pot is, which makes a lot of sense when it comes to DC as thats all it is (a pot) and can be applied to DB pensions but is more merky in meaning given a DB is a promise of payment not a fixed value pot and how you calculate its ultimate worth varies heavily as market and longevity assumptions change etc and potentially the reason you are asking for. 

I think it's very unlikely that there are people contributing to this forum that have pensions of £171K pa or more.

Why do you think that @coyrls?

I have no proof eitherway but suspect at least some members are very well off. 

I am willing to be proved wrong, but £171K of pension income (not total income) must be very very rare (I did try to find some relevant statistics but failed) and my guess would be that anybody with that sort of pension income would be vanishingly unlikely to be contributing to this forum.

...but they might get one of their staff to post on their behalf

Albermarle

coyrls said:

MyRealNameToo said:

coyrls said:

MyRealNameToo said:

MR_Johnson67 said:

On other threads I read stuff like

My private pension value is approx £171K

Do they mean they get £171K annually? 

In principle they could, there are certainly people with pensions of that size and larger however more likely they are saying what the value of the whole pot is, which makes a lot of sense when it comes to DC as thats all it is (a pot) and can be applied to DB pensions but is more merky in meaning given a DB is a promise of payment not a fixed value pot and how you calculate its ultimate worth varies heavily as market and longevity assumptions change etc and potentially the reason you are asking for. 

I think it's very unlikely that there are people contributing to this forum that have pensions of £171K pa or more.

Why do you think that @coyrls?

I have no proof eitherway but suspect at least some members are very well off. 

I am willing to be proved wrong, but £171K of pension income (not total income) must be very very rare (I did try to find some relevant statistics but failed) and my guess would be that anybody with that sort of pension income would be vanishingly unlikely to be contributing to this forum.

I would agree with you . If it was a DC pension you would have to be looking at a pot value in the region of £4 Million.
However there was a recent poster who as a couple had £3Million in their mid 50's, and were both still working, although it was a mixture of different pensions, ISA's etc.

Albermarle

MR_Johnson67 said:

On other threads I read stuff like

My private pension value is approx £171K

Do they mean they get £171K annually? 

OP,
Normally it means they have a pension pot of money of £171K.
If this was the case when the person was say 60, that amount could sustain a secure income for say 30 years of around £7,000 pa + inflation increases each year.

Cus

coyrls said:

MyRealNameToo said:

coyrls said:

MyRealNameToo said:

MR_Johnson67 said:

On other threads I read stuff like

My private pension value is approx £171K

Do they mean they get £171K annually? 

In principle they could, there are certainly people with pensions of that size and larger however more likely they are saying what the value of the whole pot is, which makes a lot of sense when it comes to DC as thats all it is (a pot) and can be applied to DB pensions but is more merky in meaning given a DB is a promise of payment not a fixed value pot and how you calculate its ultimate worth varies heavily as market and longevity assumptions change etc and potentially the reason you are asking for. 

I think it's very unlikely that there are people contributing to this forum that have pensions of £171K pa or more.

Why do you think that @coyrls?

I have no proof eitherway but suspect at least some members are very well off. 

I am willing to be proved wrong, but £171K of pension income (not total income) must be very very rare (I did try to find some relevant statistics but failed) and my guess would be that anybody with that sort of pension income would be vanishingly unlikely to be contributing to this forum.

I reckon that if say 0.1% of pension receivers have above that income then at least 0.1% of forum members have it. No reason to believe they wouldn't be on here. Money saving is for everyone no?

coyrls

Cus said:

coyrls said:

MyRealNameToo said:

coyrls said:

MyRealNameToo said:

MR_Johnson67 said:

On other threads I read stuff like

My private pension value is approx £171K

Do they mean they get £171K annually? 

In principle they could, there are certainly people with pensions of that size and larger however more likely they are saying what the value of the whole pot is, which makes a lot of sense when it comes to DC as thats all it is (a pot) and can be applied to DB pensions but is more merky in meaning given a DB is a promise of payment not a fixed value pot and how you calculate its ultimate worth varies heavily as market and longevity assumptions change etc and potentially the reason you are asking for. 

I think it's very unlikely that there are people contributing to this forum that have pensions of £171K pa or more.

Why do you think that @coyrls?

I have no proof eitherway but suspect at least some members are very well off. 

I am willing to be proved wrong, but £171K of pension income (not total income) must be very very rare (I did try to find some relevant statistics but failed) and my guess would be that anybody with that sort of pension income would be vanishingly unlikely to be contributing to this forum.

I reckon that if say 0.1% of pension receivers have above that income then at least 0.1% of forum members have it. No reason to believe they wouldn't be on here. Money saving is for everyone no?

There are two assumptions in what you say.  The first is that the percentage is such that if applied to the forum membership it would result in a number of at least one.  I couldn't find data on pension income equal or greater than £171K but I would suggest the percentage of the population that have a pension income of £171K or greater is far, far smaller than 0.1%.  The second assumption is that the forum membership reflects the income distribution of the population.  Again I don't think that is true.  I don't believe that money saving is of that much interest to the super rich, as mentioned in this thread, they have staff to worry about that sort of thing.

Cus

I appreciate the reply. For my first assumption, it didn't need a rounding up of 1 person or not, the point was that the percentage would be similar. For my second assumption, I believe that people with £5mn in pension assets (rough equivalent to a £171k pension) are not that rare, not do I consider them super rich, and I reckon they also likely to frequent these forums, if anything they are the ultimate super savers perhaps?  

The number of posters with very large pensions debating annual fees of 0.1% savings I anecdotally see here suggests they do car about the minutae.  Unless they were staff lol. Anyway, all the best

coyrls

Cus said:

I appreciate the reply. For my first assumption, it didn't need a rounding up of 1 person or not, the point was that the percentage would be similar. For my second assumption, I believe that people with £5mn in pension assets (rough equivalent to a £171k pension) are not that rare, not do I consider them super rich, and I reckon they also likely to frequent these forums, if anything they are the ultimate super savers perhaps?  

The number of posters with very large pensions debating annual fees of 0.1% savings I anecdotally see here suggests they do car about the minutae.  Unless they were staff lol. Anyway, all the best

Anyone with £5m in DC pensions would have been very badly advised and would have had the error of their ways pointed out to them in this forum, given that the LTA has only recently been abolished.