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Clerical Medical - Loss in pension value?
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As above, CM have not done anything wrong here, it would seem that you are guilty of not keeping an eye on how your pension was invested. You're not alone. I started taking much greater interest in my pensions a few years ago, and realised that a Scottish Widows pension had lifestyling that began 15 years out from retirement, and that my fund had already been subject to two years of that lifestyling. I didn't plan to use the fund to buy an annuity, I was going to use it for drawdown in retirement. A quick call to SW and I was given the option to pick a different fund or to change the retirement date so that future lifestyling would be deferred. I did the latter, and it became academic because a few months later I moved from SW to another platform to save on fees.
I don't have any lifestyling for any of my pension funds, I review my fund allocation annually and adjust it myself to suit my risk profile, latest thinking on retirement date, the amount I have in savings, etc., but I can see the attractiveness of lifestyling to those that have neither the appetite, the time nor the interest to manage their pensions as they approach retirement and then from retirement onwards.
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It was a default plan, with preset parameters. I know all about it now…. not as it evolved.
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The cash was wanted…not an annuity.
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It was a default plan, in the end cash was required. Not an annuity.
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Over what period did you want the cash?
The point about the annuity was that all of the money would be needed in one go, so if you wanted all the cash in one go then the same comments apply, whereas if you wanted to draw down over a period then that would drive a different investment strategy…
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But I'm sure the scheme booklet or welcome pack or whatever explained it all, including when and to what extent lifestyling would begin. Did you read it at the time, or just file it away in a drawer, which I suspect is what the majority of people do?
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I don't have it, and CM cant find a copy of that or the agreement.
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How do you know so much about its performance, etc.? Have you received annual statements, for example? I received an annual personalised booklet from Scottish Widows and Prudential for each of those pensions, which gave me the current value, performance, projections, options at retirements, details on lifestyling and alternative funds.
What correspondence do you get from CM?
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What outcome are you looking for? Are you suggesting some sort of mis-selling? I suspect that will be hard to prove, and CM aren't going to let you retrospectively change your fund/lifestyling choice, unless you have evidence that they enacted a fund choice that was contrary to your instructions.
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A default plan is where you're invested unless and until you actively make a decision (and tell the provider!) that you wish to switch to other fund(s). It was up to you to ensure your investment choices were aimed at achieving your preferred objective. Given the vast amount of coverage in the media about pensions, especially since the so-called pension freedoms were introduced over a decade ago, it's pretty alarming how few people recognise that.
Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0
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