Work place pension

QrizB

https://forums.moneysavingexpert.com/discussion/comment/82098163#Comment_82098163

I don't know why you say that?

3% employer pension contributions are part of the rewards package for the job. If you decline to join the employer's pension scheme, you're giving up those 3% of your rewards.

EnPointe

https://forums.moneysavingexpert.com/discussion/comment/82098189#Comment_82098189

unfortunately that is not what you said in your post , and would be confusing for someone, like the OP who is struggling with the concept of workplace pensions

QrizB

https://forums.moneysavingexpert.com/discussion/comment/82098192#Comment_82098192

It's quite literally what I said in my post, you've even quoted it!

I've only contributed once to this thread (twice including this reply). Are you confusing me with @daveyjp ?

DRS1

NEST have a thing called the Lower Growth Fund. It is for very cautious investors and holds bonds rather than shares. If you look at their performance tables it is the worst performer over 5 years and hasn't beaten CPI over that time but the last two years have shown over 4% growth. I could be wrong but it looks like the closest thing to a cash ISA that they have. The Post Retirement Fund or the Guided Retirement Fund would probably give you better performance though because they are not just in bonds.

One thing to think about is what you will do with the pension when you get to 67. A pension is really meant to pay you an income over the rest of your life so you would have a long investment time horizon. But if you think this one is going to be so small you want to take it all at once then it is different and a more cash like approach would be more the thing. Bonds are thought of as safe but a few years ago they (well gilts really) had a nightmare. Hopefully that was a once in a lifetime horror and you won't see another one in the next 4 years.

PractisingIFA

https://forums.moneysavingexpert.com/discussion/comment/82098296#Comment_82098296

Gilts had a nightmare because they were in a bubble that was always going to burst with interest rates being so low. There was literally only one way for them to go.

Nowadays, they're in a normal range where you it's unlikely that we'll get that kind of inflation spike from this base rate, especially given the current risk free rate of return on gilts.

jimjames

I don't know what to do as nobody in work seems to be able to tell me any detail atall. I am currently 63 only just started the pension I retire at 67 so only got 4 years left

Most people don't take all their pension at 67, it's meant to last your whole retirement so having some invested will help ensure it lasts. If you're taking out an annuity for a guaranteed income in retirement when you reach 67 then it might well be better to not have it invested (but still have it in the pension)

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82098739#Comment_82098739

If you really are a 'Practising IFA' then you have to declare it at the bottom of each post. There is some mechanism for this in the forum rules I think. Also no touting for business allowed, but otherwise professional input is good.

PractisingIFA

https://forums.moneysavingexpert.com/discussion/comment/82099405#Comment_82099405

https://forums.moneysavingexpert.com/discussion/comment/82099405#Comment_82099405

Thanks. I read the rules and it doesn't mention I have to declare it on each post. I had to state why I was joining the forum and got accepted after a few days. I most definitely don't want to gain any business here! I'm far too busy with the 9-5. For transparency, my company has a high minimum threshold and I come from a far more working class background, so my motivation is to help those that need it more than perhaps my paying clients!

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82099897#Comment_82099897

Helping others with free knowledgeable guidance fits in very well with the forum, and would be most welcome .

I am not an IFA, but will tag our most prolific IFA contributor for their comments about the rules about professional contributors.

@dunstonh

dunstonh

Thanks. I read the rules and it doesn't mention I have to declare it on each post. 

It was a requirement for mortgage brokers. They had a few bad eggs here for a short while, and the board admin required a disclosure in the signature, which was an agreement to abide by certain rules. After Martin sold the site and the board moved to the new software, a lot of the requirements were rewritten and the requirement for a disclosure in the signature disappeared and wasn't replaced. However, most of the mortgage brokers still retain it.

They never extended it to IFAs, as at the time there were only a couple of us active on the board, and we were acting responsibly. However, my signature on posts is at the regulator's recommendation.

Many, many years ago, I had someone report a thread I responded to on Usenet directly to the regulator. The report was bogus, which taught me how unscrupulous some trolls can be (they changed the order of posts, and left some out and even edited some of the text). The regulator arranged a visit, and as soon as he arrived, he said, "We don't have a problem. You've done nothing wrong, but we've got nothing in the rulebook about the internet, and we wanted to understand more about it."

Basically, keep it generic, don't give advice, and add a compliance message to the bottom of your posts to make it clear that it's only for discussion. And the signature I've got is the one I've run for the last 30 years (OMG - that long!).

I'm far too busy with the 9-5. 

In which case, you're not a real IFA 🤪. That is far too short a working day.