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Warning – if your work pension has the wrong retirement date, it could cost you £1,000s - MSE News
MSE_Chris_D
Posts: 31 MSE Staff
Millions of savers risk missing out on £1,000s from their final pension pot if their provider doesn't have their correct planned retirement date, it's been claimed – so check your date now to avoid losing out...
Read the full story:
Warning – if your work pension has the wrong retirement date, it could cost you £1,000s
Click reply below to discuss. If you haven't already, join the forum to reply.
Warning – if your work pension has the wrong retirement date, it could cost you £1,000s
Click reply below to discuss. If you haven't already, join the forum to reply.
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Comments
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The Government should declare a lifestyling amnesty and force all pension providers to terminate all lifestyling options, unless the member specifically opts out of the amnesty.
It was a stupid concept even before pension freedoms. It encourages complacency. The problem that some people complacently stay in high-risk portfolios in the run-up to buying an annuity (leaving aside that increasingly few people buy an annuity) cannot be solved by encouraging more complacency. As this article illustrates, doing so has created a worse problem.0 -
I have no intention of being in work after my "planned" retirement age.
And given the pitifully low rate of return on the "safe" lifestyle investments, I would rather keep my money in a growth fund for longer, so at least it has a chance of going up in value. I have two separate pension funds, which I do not intend to merge, so I get some extra diversification there.If it sticks, force it.
If it breaks, well it wasn't working right anyway.0 -
I opted out of the lifestyle fund once I realised that my works pension pretty much transfers your pension into cash at 10% a year for ten years leading up to your retirement. It is old fashioned, and set up so that you can buy an annuity with the cash when you retire. Which is not something I plan on doing, and I would have missed out on many years of potential growth if I hadn't realised beforehand.Think first of your goal, then make it happen!0
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Funnily enough we have just encountered this situation with the OH new employment works group pension, run by Royal London. It has 'defaulted' (??) in to the 'Flexible Lifestyle Strategy' which would be ok but I have been unable to find a way to change the investment profile (funds). Have asked RL the question and will be interested to read their response.
If it is a 'group policy' setting/decision and we cannot change the investment profile then I'll have to ask if they can extend the OHs retirement date by approx 30 years.
Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
The combination of lifestyling and the wrong retirement date worked out just right for me. Because I was retiring earlier than my DC scheme thought, I was able to intercept the annuity glide path before my fund lost too much height.0
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Funnily enough we have just encountered this situation with the OH new employment works group pension, run by Royal London. It has 'defaulted' (??) in to the 'Flexible Lifestyle Strategy' which would be ok but I have been unable to find a way to change the investment profile (funds). Have asked RL the question and will be interested to read their response.
If it is a 'group policy' setting/decision and we cannot change the investment profile then I'll have to ask if they can extend the OHs retirement date by approx 30 years.
RL have a range of strategies where they pick the underlying funds. Including their Governed Portfolios which do not have lifestyling. So, you should be able to move to an alternative strategy.
So, as long as the employer has not restricted the range to a ridiculous level, you should be ok to pick alternatives.0 -
Not sure about Royal London but with most of the big pension providers you can change your planned retirement date online .If it is a 'group policy' setting/decision and we cannot change the investment profile then I'll have to ask if they can extend the OHs retirement date by approx 30 years
So if you are in a lifestyle option you can adjust the risk level by changing your retirement date .
A somewhat unsophisticated way of managing investments but it does work after a fashion.0
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