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How much has your pension dropped during covid 19 crisis?


Ďouglas Peel
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Just got a statement through 2nd June,regarding a pension i have,which was built up during 24 years in the building industry,it is due to mature and pay out in 5 years time.Not a huge pension really, but i would have had enough to buy a new car 5 years on .In 4 months it has devalued by 20% since February ,i.e 6k down. Im told the average downturn in values is circa 15%. This isnt good for anyone retiring in the next  year or two.

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13 minutes ago, Ďouglas Peel said:

Just got a statement through 2nd June,regarding a pension i have,which was built up during 24 years in the building industry,it is due to mature and pay out in 5 years time.Not a huge pension really, but i would have had enough to buy a new car 5 years on .In 4 months it has devalued by 20% since February ,i.e 6k down. Im told the average downturn in values is circa 15%. This isnt good for anyone retiring in the next  year or two.

You can probably defer taking the pension. I'm down ~12%, will probably defer until I'm 70.

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3 minutes ago, GD4ELI said:

You can probably defer taking the pension. I'm down ~12%, will probably defer until I'm 70.

Interesting,a woman i know has been to a professional pension advisor in the last few days and it was said it probably will take years to get back to Feb 2020 levels,who knows?

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58 minutes ago, Ďouglas Peel said:

Interesting,a woman i know has been to a professional pension advisor in the last few days and it was said it probably will take years to get back to Feb 2020 levels,who knows?

A couple of years at least, depends on whether there's a solution to Covid 19, also there's already a fundamental shift in the world's economy.

Seems also that enough info has leaked from China which firmly places the blame on an accident in a laboratory where the first cases were reported, apparently they were modifying Corona anyway and it went wrong. If there's a resulting economic war (which Donnie 'Darko' Trump would love) then it may take even longer.

 

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37 minutes ago, Manxberry said:

You can definitely tell the age gap here. Anyone under 35 is like "What pension?"

Yes i used to think like that too,i used to work with building workers in the late 80s  who at 65 got £1500  per month and their gov pensions at that time, and that was " blue collar" workers on the tools,but i was told you cant join (1979) as the company (Tarmac group co) cant sustain this.so its not a new thing.As somebody who had a endowment mortgage that failed by 10 k after being promised a 6 k surplus,and when started work, was told the pension would be £200,000 plus and its now 25K.i would remind young people that,banks, insurance companies,pension providers,have the keys of the till,and you know what that means.

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3 minutes ago, Ďouglas Peel said:

Yes i used to think like that too,i used to work with building workers in the late 80s  who at 65 got £1500  per month and their gov pensions at that time, and that was " blue collar" workers on the tools,but i was told you cant join (1979) as the company (Tarmac group co) cant sustain this.so its not a new thing.As somebody who had a endowment mortgage that failed by 10 k after being promised a 6 k surplus,and when started work, was told the pension would be £200,000 plus and its now 25K.i would remind young people that,banks, insurance companies,pension providers,have the keys of the till,and you know what that means.

Or,

When you were young there was high inflation and high interest rates. Inflation is now under control, hence the difference. Final salary schemes were unsustainable anyway, sent some companies to the wall.

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2 hours ago, Ďouglas Peel said:

Yes i used to think like that too,i used to work with building workers in the late 80s  who at 65 got £1500  per month and their gov pensions at that time, and that was " blue collar" workers on the tools,but i was told you cant join (1979) as the company (Tarmac group co) cant sustain this.so its not a new thing.As somebody who had a endowment mortgage that failed by 10 k after being promised a 6 k surplus,and when started work, was told the pension would be £200,000 plus and its now 25K.i would remind young people that,banks, insurance companies,pension providers,have the keys of the till,and you know what that means.

Wow. Endowment mortgages. Almost forgotten about those. When we first married and bought our first property, early 80s, we were talked into an endowment mortgage by our solicitor. It was a bit cheaper than the repayment version because of the tax relief on the insurance element at the time. What he didn't tell us was that he would be trousering our first 18 months of premiums as commission. We only found that out when the scandal erupted years later.

Anyway, he must have finished up disappointed because I was talking to my uncle about the deal and he pulled his face and said "Get rid of it." So we did after just a few months. By the time we sold the property 5 years later we'd saved enough to pay off the mortgage.

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9 hours ago, Ďouglas Peel said:

Just got a statement through 2nd June,regarding a pension i have,which was built up during 24 years in the building industry,it is due to mature and pay out in 5 years time.Not a huge pension really, but i would have had enough to buy a new car 5 years on .In 4 months it has devalued by 20% since February ,i.e 6k down. Im told the average downturn in values is circa 15%. This isnt good for anyone retiring in the next  year or two.

Mines gone up (marginally). You can’t have a good adviser. 

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7 minutes ago, Mr Newbie said:

Mines gone up (marginally). You can’t have a good adviser. 

Blimey, just checked mine and it's up ~25% since Jan 1st.

Crazy.

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Mine is up a bit.  I switched out about 6% down and switched back in a few weeks back.  I've made up the losses and slightly ahead now.  But I really switched out for peace of mind.  I could have switched back sooner but it wasn't a risk I wanted to take. Although I've got another 20 plus years at it anyway.

I didnt touch another pension I've got.  It's level.  If you are exposed to US markets primarily rather than just the Ftse you won't be far behind probably.

Markets have bounced back quicker than I thought they would.  

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2 minutes ago, The Dog's Dangly Bits said:

Mine is up a bit.  I switched out about 6% down and switched back in a few weeks back.  I've made up the losses and slightly ahead now.  But I really switched out for peace of mind.  I could have switched back sooner but it wasn't a risk I wanted to take. Although I've got another 20 plus years at it anyway.

I didnt touch another pension I've got.  It's level.  If you are exposed to US markets primarily rather than just the Ftse you won't be far behind probably.

Markets have bounced back quicker than I thought they would.  

True,

And this is where it does pay to have good managers. I've actually got 3 different investment funds, never really been much of a fan of the high life.

Biggest issue I'll have is an annuity - ~25% of the total will have to be taken as such by the time I'm 75 (13 years to go), rates are low and going nowhere. That'll just about pay for dog food and the occasional hooker pizza.

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