Pension fund performance - do you monitor yours, how is it doing, do you actively change it?

bit late for moi, was told i could expect to live to 50 with my condition, thats a bit shakey as now 56:cry:, i only do pension as pays out 5 times salary when kick the bucket, so its there for the kids. i better hurry up and keel over by 67:cry:
 
slinxy said:

I got this from a youtube video

Bear in mind those are 2019 figures and we have had a lot of inflation recently. But putting away £1,755 in 2019 for a comfortable retirement is now £2,185.34 according to the BoE inflation calculator, and £799 for a moderate retirement is now £994.92. Also this is the amount per year if you started working at 18 till your 67, which you will need to bump up with the yearly inflation and it doesn't include the state pension which is asumed already adjusted for inflation.

Retirement is going to be rough... lol..
Click to expand...
Unless you're in your 50s you better start enjoying your job as you're going to be doing it till 80ish!
 
MCFC_ANDY said:
bit late for moi, was told i could expect to live to 50 with my condition, thats a bit shakey as now 56:cry:, i only do pension as pays out 5 times salary when kick the bucket, so its there for the kids. i better hurry up and keel over by 67:cry:
Click to expand...
Wouldn't it be great if we could all know exactly when we're gonna die? :D

It's all a bit of a gamble really. Someone could make sacrifices to fully fund a pension to generate what they think they need in retirement only to go into care soon after retirement and start seeing their cash start to burn down at £80k+ a year while those with no savings or pension receive the same care for free.
I've looked at my family history a bit and seems some die quite young, others live to 100+. One died soon after retirement, died before I was born.

It's interesting looking into opinions on what people might need but many examples I think don't take savings into consideration. As the guy in the video above said, you'd want to minimise what you pay in tax from the pension so would make sense to also draw down from an ISA if have one or other savings, rather than needing it all as retirement income from the pension.

I like the idea of retiring on my terms, which I've already done although calling it semi-retired for now, and if run out of money or in poor health (hopefully both at the exact same time) and the state pension isn't enough to have the option of a visit to one of those death pod things :D.
 
Last edited:
slinxy said:

I got this from a youtube video

Bear in mind those are 2019 figures and we have had a lot of inflation recently. But putting away £1,755 in 2019 for a comfortable retirement is now £2,185.34 according to the BoE inflation calculator, and £799 for a moderate retirement is now £994.92. Also this is the amount per year if you started working at 18 till your 67, which you will need to bump up with the yearly inflation and it doesn't include the state pension which is asumed already adjusted for inflation.

Retirement is going to be rough... lol..
Click to expand...
Those are the amounts per month you need to save, not the amount per year.
 
platinum87 said:
No point to post figures without explaining the detail.

2k per month if you are 50 years old already with nothing, sure

2k per month from 18 years old until 67 = filthy rich, filthy filthy filthy rich
Click to expand...
True, they aren't that useful without additional context except to highlight most people need to save significantly more than they currently do and hopefully encourage people to come up with an actual plan. Otherwise it's big lifestyle change or work til you drop time.
 
slinxy said:

I got this from a youtube video

Bear in mind those are 2019 figures and we have had a lot of inflation recently. But putting away £1,755 in 2019 for a comfortable retirement is now £2,185.34 according to the BoE inflation calculator, and £799 for a moderate retirement is now £994.92. Also this is the amount per *EDIT* month if you started working at 18 till your 67, which you will need to bump up with the yearly inflation and it doesn't include the state pension which is asumed already adjusted for inflation.

Retirement is going to be rough... lol..
Click to expand...


I normally like his videos but found that one a bit strange. About halfway through he comes out with a different set of figures which is quite a bit lower than the first set. Then starts talking about ISAs, which to my mind is odd because if you can't afford to save much into a pension how can you then afford to save into an ISA as well.
 
Pickers said:
So I've just joing an L&G pension... Any tips on what is a good investment???
Click to expand...


You can use this to search / filter for funds as it's a bit easier than using the search within the Workplace Pension app.

Obviously change the product type if your employer is not enrolled on WorkSave gen 3.

L&G PMC Global Developed Equity Index Fund 3 is what you probably want as it tracks FTSE Developed World Index and it's just Legal & General World Developed Equity Index Fund with a different name to it.
 
Pickers said:
So I've just joing an L&G pension... Any tips on what is a good investment???
Click to expand...
I got 50% in diversified fund which is the default fund.

45% in developed world https://fundcentres.lgim.com/srp/documents-id/c6e492c2-4bf3-42ef-a498-8aeb7dcb7e4b/Factsheet.pdf

And 5% in emerging markets

This roughly works for me as I put in 13% percent and work puts in 10% plus 12.5% extra of my 13%.. so half of the money I put in goes to a world fund while the other half that my work puts in goes to the default fund. Then my yearly bonus is just split between the two.

The default fund had out paced the world market this year.
 
slinxy said:
I got 50% in diversified fund which is the default fund.

45% in developed world https://fundcentres.lgim.com/srp/documents-id/c6e492c2-4bf3-42ef-a498-8aeb7dcb7e4b/Factsheet.pdf

And 5% in emerging markets

This roughly works for me as I put in 13% percent and work puts in 10% plus 12.5% extra of my 13%.. so half of the money I put in goes to a world fund while the other half that my work puts in goes to the default fund. Then my yearly bonus is just split between the two.

The default fund had out paced the world market this year.
Click to expand...
Well now that's interesting.. thanks
 
Azza said:
You can use this to search / filter for funds as it's a bit easier than using the search within the Workplace Pension app.

Obviously change the product type if your employer is not enrolled on WorkSave gen 3.

L&G PMC Global Developed Equity Index Fund 3 is what you probably want as it tracks FTSE Developed World Index and it's just Legal & General World Developed Equity Index Fund with a different name to it.
Click to expand...
This is great - thank you. I did believe that world fund may be better...
 
Last edited:
Was watching a youtube video by an IFS, and in relation to pensions he said that on death, a lot of pension providers only provide the facility to pay out a lump sum to the benficiary, they don't provide the option for the beneficiary to take an annuity or indeed carry it on as a nominee pension.

I've looked at vanguard, and thankfully they provide all of those options. Taking it as a lump sum will mean the beneficiary will be hit with a big tax bill, whereas having the other options might well mean that they pay little, or at least, less tax.

I note that my work pension provider, Nest, only provides a lump sum.
 
tangey said:
Was watching a youtube video by an IFS, and in relation to pensions he said that on death, a lot of pension providers only provide the facility to pay out a lump sum to the benficiary, they don't provide the option for the beneficiary to take an annuity or indeed carry it on as a nominee pension.

I've looked at vanguard, and thankfully they provide all of those options. Taking it as a lump sum will mean the beneficiary will be hit with a big tax bill, whereas having the other options might well mean that they pay little, or at least, less tax.

I note that my work pension provider, Nest, only provides a lump sum.
Click to expand...
Good to know, not something I ever considered. Glad to be with Vanguard, also got a ISA with them for each of my children.
 
tangey said:
I've looked at vanguard, and thankfully they provide all of those options. Taking it as a lump sum will mean the beneficiary will be hit with a big tax bill, whereas having the other options might well mean that they pay little, or at least, less tax.
Click to expand...
It depends, but not necessarily. Tax isn't paid on DC/SIPP pots if you die before 75, assuming pot isn't bigger than the lump sum allowance (£1m or so). Could be an issue if you expect to pass on a significant pot post 75.
www.gov.uk

Tax on a private pension you inherit

When and how to pay tax if you get money from someone's pension pot after they die - including 'death in service' benefits
www.gov.uk www.gov.uk
 
Last edited:
tangey said:
Was watching a youtube video by an IFS, and in relation to pensions he said that on death, a lot of pension providers only provide the facility to pay out a lump sum to the benficiary, they don't provide the option for the beneficiary to take an annuity or indeed carry it on as a nominee pension.

I've looked at vanguard, and thankfully they provide all of those options. Taking it as a lump sum will mean the beneficiary will be hit with a big tax bill, whereas having the other options might well mean that they pay little, or at least, less tax.

I note that my work pension provider, Nest, only provides a lump sum.
Click to expand...

easy to transfer to another provider that does provide all the options.

It's extremely rare for ALL options not to be offered. Any of the bigger providers will offer all options to the beneficiaries

NEST simply doesn't have the capacity/offerings as they are very basic provider of pensions to fulfil a need for employers to tick a box
 
Last edited:
You must log in or register to reply here.
Back
Top Bottom