Is anyone else not bothering with pension planning?

[Jockman]

treetops said:

Safer funds and a poorer return, fees and inflation wiping out returns.

Property funds like the ones frozen in recent times as investors dashed to get their cash out - which they couldn't.

Everyone assumes it's an upward trajectory, it not as we are deep in a bear market just now.

Sure, you need to be mindful of fees and inflation but if there is a correction 2% is better than minus 2%.

If you're drip feeding you'll be buying cheaper units in the event of a downturn.

Have a look at out of favour sectors. Take a punt. Be a contrarian.

[anonymous-user]

treetops said:

Rules changed on many, rarely available. Most moved onto DC.

Not so, I joined the civil service “alpha” pension only this month. Defined benefit, works out 7.35% contribution on my side and 25% on theirs.

[The Leaper]

The Civil Service Alpha Scheme is defined benefit, but not final salary. It's career average, a poor relation of final salary.

R

[Jockman]

career average 'revalued'.

[drainbrain]

With reference to the thread title...............

Into the third year of pension-free retirement.

Wonderful! And super-uncomplicated!

Sold our house the other month and paid off the IO mortgage. Moved into rented. Was hoping to move into a different one every year. That was supposed to be the plan, but we're only in the first one and the wife totally loves it so that plan's heading down the swanny......

[sidicks]

treetops said:

Safer funds and a poorer return, fees and inflation wiping out returns.

Many equity funds were up 12-25% last year.

treetops said:

Property funds like the ones frozen in recent times as investors dashed to get their cash out - which they couldn't.

Did you not realise that properties are illiquid assets and can’t be sold at a moment’s notice? Have you ever tried to buy or sell property?

treetops said:

Everyone assumes it's an upward trajectory, it not as we are deep in a bear market just now.

That’s quite different from claiming that pots will be ‘wiped out’...

Edited by sidicks on Thursday 1st February 22:43

[sidicks]

treetops said:

Rules changed on many, rarely available. Most moved onto DC.

Public sector pensions are still massively expensive despite having been tweaked over the years. They are available to the vast majority of public sector workers. Most have NOT been moved to DC, you are simply talking nonsense.

[sidicks]

The Leaper said:

The Civil Service Alpha Scheme is defined benefit, but not final salary. It's career average, a poor relation of final salary.

R

Not true.

It depends on the revaluation rate and the accrual rate. The public sector schemes that have been moved to CARE are not massively less expensive for many people, particularly those with lower pay progression.

[drainbrain]

sidicks said:

Did you not realise that properties are illiquid assets and can’t be sold at a moment’s notice? Have you ever tried to buy or sell property?

Yes. Both buying and selling.

Often the cheaper it's priced the faster it sells. Sometimes it's resold before it's even bought. Sometimes it's sold without needing marketed. Highly demanded prime property sells lightning fast when marketed. Some people make a living flipping property. Sometimes property's bought on a phone call and sold on the next call. Builders sell it before it's even built. etc etc etc etc

[Jockman]

drainbrain said:

Yes. Both buying and selling.

Often the cheaper it's priced the faster it sells. Sometimes it's resold before it's even bought. Sometimes it's sold without needing marketed. Highly demanded prime property sells lightning fast when marketed. Some people make a living flipping property. Sometimes property's bought on a phone call and sold on the next call. Builders sell it before it's even built. etc etc etc etc

Thought you'd done a runner - haven't heard for a while !!

Yeah, I've sold a residential on day one and also one in 9 months. A lot of these funds seem to invest in commercial property which is a whole different animal as I'm sure you know.

[sidicks]

Jockman said:

Thought you'd done a runner - haven't heard for a while !!

Yeah, I've sold a residential on day one and also one in 9 months. A lot of these funds seem to invest in commercial property which is a whole different animal as I'm sure you know.

These funds can only invest in commercial property - buildings worth tens of millions can’t get sold instantly.

[sidicks]

drainbrain said:

Yes. Both buying and selling.

Often the cheaper it's priced the faster it sells. Sometimes it's resold before it's even bought. Sometimes it's sold without needing marketed. Highly demanded prime property sells lightning fast when marketed. Some people make a living flipping property. Sometimes property's bought on a phone call and sold on the next call. Builders sell it before it's even built. etc etc etc etc

And how well does that analogy work when there are thousands of people owning a small share in multiple properties managed by a third party where (out of the blue) one person suddenly wants to sell their share?

[Jockman]

sidicks said:

Jockman said:

Thought you'd done a runner - haven't heard for a while !!

Yeah, I've sold a residential on day one and also one in 9 months. A lot of these funds seem to invest in commercial property which is a whole different animal as I'm sure you know.

These funds can only invest in commercial property - buildings worth tens of millions can’t get sold instantly.

Indeed. The Commercial side is a different sector, as mentioned. Less fluid but with a lot of tax saving attractions if approached through Pension or EIS.

[drainbrain]

Jockman said:

Thought you'd done a runner - haven't heard for a while !!

Yeah, I've sold a residential on day one and also one in 9 months. A lot of these funds seem to invest in commercial property which is a whole different animal as I'm sure you know.

Yeah got bored and finding Real World more fun.

Dunno about funds but comm (especially the best comm) never gets to market because the seller already knows who wants it because they've already expressed their interest. You've probably done the same. I know I have. "if you're ever in the selling mood I'd be delighted to take it off your hands". Owners of hi-val property know their markets just as well as owners of low-val stuff do. Anyone with anything prime is sitting on a load of interest in it. Wouldn't be prime if they didn't.

Should also say a bit of laid back flipping's another nice non-pension "retirement gig" for anyone following the thread title. You don't even need to know anything about property to do it either.

[anonymous-user]

sidicks said:

The Leaper said:

The Civil Service Alpha Scheme is defined benefit, but not final salary. It's career average, a poor relation of final salary.

R

Not true.

It depends on the revaluation rate and the accrual rate. The public sector schemes that have been moved to CARE are not massively less expensive for many people, particularly those with lower pay progression.

Agreed. It may not be final salary but it’s still better than you’ll get almost anywhere in the private sector and the government guarantees it. The suggestion that it’s nit worth having is just lazy Googling.

[oyster]

Since 2015, one of my retirement investments has increased from £15k to £200k.

I have only invested approx £60k of my own cash into it.



Not BTL
Not ISAs
Just good, old-fashioned pension contributions.

[treetops]

oyster said:

Since 2015, one of my retirement investments has increased from £15k to £200k.

I have only invested approx £60k of my own cash into it.



Not BTL
Not ISAs
Just good, old-fashioned pension contributions.

Pray tell us the fund.

[sidicks]

treetops said:

Pray tell us the fund.

Presumably not a fund, but a single investment?

[oyster]

treetops said:

oyster said:

Since 2015, one of my retirement investments has increased from £15k to £200k.

I have only invested approx £60k of my own cash into it.



Not BTL
Not ISAs
Just good, old-fashioned pension contributions.

Pray tell us the fund.

I'd say since 2015 the fund it's in has not increased any more or less than the general market.

It's the tax wrapper and employer matching that's really made the biggest difference.

[Brave Fart]

oyster said:

I'd say since 2015 the fund it's in has not increased any more or less than the general market.

It's the tax wrapper and employer matching that's really made the biggest difference.

I guess if you're a higher rate tax payer then your 60k becomes 100k, plus if your employer matched your contribution completely that's another 60k, making 175k including the starting 15k. Growth from 175k to 200k is very believable over the last two years.

See, this is where I don't get the people who say "property - much better than pension funds". If you are a higher rate taxpayer with employer matching then DC pensions are nigh on unbeatable I'd have thought.