Time to get a personal pension?

[neviboss]

I don't know what everybody elses thoughts are, but I can see the pension fund not being around in 5 or 10 years time!

I'm lucky, I have a personal pension which I have had for 30 years, however those who are relying on their RM pension, may need to look at buying a plan with a reputable pension provider. It's also essential that fees and costs are looked at, as these can eat up, early on in a plans life!

[freespeech]

I don't know what everybody elses thoughts are, but I can see the pension fund not being around in 5 or 10 years time!

I'm lucky, I have a personal pension which I have had for 30 years, however those who are relying on their RM pension, may need to look at buying a plan with a reputable pension provider. It's also essential that fees and costs are looked at, as these can eat up, early on in a plans life!

Madness in my view given one through the employer attracts a significant contribution.

[RobertT]

I don't know what everybody elses thoughts are, but I can see the pension fund not being around in 5 or 10 years time!

The first thing to understand is that section A, B & C pensions up to 2012, via the RMSPS, are backed by the government and are effectively paid for by the UK taxpayers. There is no pot of money with our names on it and so no fund that can reduce in value!

The RMPP however, is invested in the markets and has been the subject of some of the turmoil we've seen recently, as have other schemes.

There are some who think the worst case scenario will happen and we're basically all in the sh!t. But it's important to realise that:

The RMPP recently announced it was in surplus.
It's sponsoring employer(RM) is a solvent company.
It also has the lifeline of the Pension Protection Fund, which recently announced it was in good shape and reducing the levy schemes pay into it.

My view is that the worst case scenario won't be allowed to happen. Hopefully that turns out to be true.

I'm lucky, I have a personal pension which I have had for 30 years, however those who are relying on their RM pension, may need to look at buying a plan with a reputable pension provider. It's also essential that fees and costs are looked at, as these can eat up, early on in a plans life!

You only have to look at your annual statement to know that the RM pension won't be enough for most people to retire on comfortably, particularly before state pension age. So saving extra is always a good idea.

It's obviously hard to do, especially at the moment with the cost of living, interest rates and being on strike, etc. But my advice is, if you can afford to save extra, do so. Your future self will be glad you did!

[milly]

Rumours circulating tonight that Companies are being asked for loans by their Pension schemes.
Starting to look like our Pension Scheme is nothing more than a pyramid scheme.
I hope these rumours are unfounded.

[Hyrrokkin]

Please RobertT no more sage sensible clear pension advice
I would like far more doomsday scaremongering hyperbole please

[milly]

Please RobertT no more sage sensible clear pension advice
I would like far more doomsday scaremongering hyperbole please

We are in the biggest debt bubble in human history and most occupational Pensions are invested in it.
Because interest rates have been far too low for many years occupational Pensions have resorted to using risky financial instruments such as LDI's to juice up returns as Gilt yields have been so low.
Ostrich syndrome isn't a viable strategy .

[hans solo]

Rumours circulating tonight that Companies are being asked for loans by their Pension schemes.
Starting to look like our Pension Scheme is nothing more than a pyramid scheme.
I hope these rumours are unfounded.

Can’t see Simon authorising that

[RobertT]

We are in the biggest debt bubble in human history and most occupational Pensions are invested in it.
Because interest rates have been far too low for many years occupational Pensions have resorted to using risky financial instruments such as LDI's to juice up returns as Gilt yields have been so low.
Ostrich syndrome isn't a viable strategy .

I don't know if you're suggesting I have my head in the sand, but I can assure you, I haven't. I'm taking a sensible, level headed and logical view of recent events!

Many DB pension schemes have been found out due to investing in LDI's, which was compounded by the incompetence of the new residents of numbers 10 & 11 Downing Street.

The Bank of England stepped in to steady the ship and now those schemes are getting out of said investments. Some may well need assistance to do that.
RM have already helped out financially, as was reported on these forums a week ago: https://royalmailchat.co.uk/community/v ... 7&t=106800

DB pension benefits don't just reduce in value in the same way as DC pensions or equity ISA's might! They have the sponsoring employer who are legally obliged to put more money in, and if they're unable to do that due to bankruptcy, the PPF is the last resort.

The PPF recently announced it had a total of £1,450 Billion worth of assets, compared to £1,076 Billion of liabilities. The RMPP's assets are less than 1% of the PPF's at £13.5 Billion.

What's been going on is obviously worrying, but any immediate chance of meltdown has clearly been averted. Did anyone seriously think there wouldn't be a reaction in one way or another? As I said up thread, the worst case scenario won't be allowed to happen.

This BBC article sums up where we currently are: https://www.bbc.co.uk/news/business-63231132

[milly]

We are in the biggest debt bubble in human history and most occupational Pensions are invested in it.
Because interest rates have been far too low for many years occupational Pensions have resorted to using risky financial instruments such as LDI's to juice up returns as Gilt yields have been so low.
Ostrich syndrome isn't a viable strategy .

I don't know if you're suggesting I have my head in the sand, but I can assure you, I haven't. I'm taking a sensible, level headed and logical view of recent events!

Many DB pension schemes have been found out due to investing in LDI's, which was compounded by the incompetence of the new residents of numbers 10 & 11 Downing Street.

The Bank of England stepped in to steady the ship and now those schemes are getting out of said investments. Some may well need assistance to do that.
RM have already helped out financially, as was reported on these forums a week ago: https://royalmailchat.co.uk/community/v ... 7&t=106800

DB pension benefits don't just reduce in value in the same way as DC pensions or equity ISA's might! They have the sponsoring employer who are legally obliged to put more money in, and if they're unable to do that due to bankruptcy, the PPF is the last resort.

The PPF recently announced it had a total of £1,450 Billion worth of assets, compared to £1,076 Billion of liabilities. The RMPP's assets are less than 1% of the PPF's at £13.5 Billion.

What's been going on is obviously worrying, but any immediate chance of meltdown has clearly been averted. Did anyone seriously think there wouldn't be a reaction in one way or another? As I said up thread, the worst case scenario won't be allowed to happen.

This BBC article sums up where we currently are: https://www.bbc.co.uk/news/business-63231132

Our Pensions will be paid out and nominally our benefits won't go down but that's not much use if a loaf of bread costs a fiver.
I'm afraid the Welfare state is consuming the UK and it will take our Pension with it.
I think you need to look at the Macro picture, this isn't just happening in the UK it is also happening in most of the Western World.

[Tman]

So what would you suggest that most of Western World should do?

[milly]

So what would you suggest that most of Western World should do?

It's probably too late, systematic collapse looks baked in along with financial repression.
The State is too big to sustain itself and nobody can handle the reality of the situation so collapse it is.
The Welfare bill has been monetised by the Bank of England for the past 10 years, our Taxes don't cover our Countries expenditure.
All of our saved Labour is being handed to the bloated State to pay for immigrants in Hotels, the War in Ukraine, Public sector Pensions, Billions wasted on Covid and an ever expanding Welfare State.
What Politician is ever going to ask for all of this to be reigned in and keep their Seat.
And one other thing which will be the final nail in the Coffin is that we now have to try and run our economy on expensive energy thanks to our insane Politicians and their Climate Change and Warmongering policies.
Apart from all that things look pretty good .

[Tman]

Did your dad used to walk up and down Oxford Street wearing an A board saying "The end of the World is nigh" some years back?

[Tman]

Did your dad used to walk up and down Oxford Street wearing an A board saying "The end of the World is nigh" some years back?

[milly]

Did your dad used to walk up and down Oxford Street wearing an A board saying "The end of the World is nigh" some years back?

Attack my arguments don't attack my character.
Perhaps you could tell me why I'm wrong .

[RobertT]

So what would you suggest that most of Western World should do?

I'd like to second this question!

Milly, you've told us over and over again what you think the worst case scenario will be. That's your opinion and that's fine. But you haven't given your opinions on what should be done to correct it.
I'd be interested to know!

Your ranting diatribe is nothing without meaningful alternatives.