Pension question

Fattyfoggon

Fattyfoggon

Well-known member
Bit selfish with the world in turmoil but a Question for any pension experts, I was hoping to retire in a few years time so have been adding avc's to my pension each month and normally put my yearly bonus into it as well. However, with the stock market crashing, is there any point topping up my pension atm would I be better just saving the money ?
 
A pension is a savings vehicle and probably now represents a good time to invest if you feel we are reaching the bottom of the market. Other investments are either very risky or in terms of deposit accounts negligible interest rates.
 
Well depends where its distributed. A company one might have a provision that it has to have a minimum performance value. Mine has at 1%. Was always mad the last 4 to 5 years when they didn't achieve much more than that when the markets was going up around 10%+ per year.
I'll be waiting for the "Due to exceptional circumstances" excuse coming soon.

Unless you believe this is the end of the world then its probably a great time to invest but who knows.

If it is a private pension you are most likely to be at the mercy of the markets. You should be able to see the valuation either online or a phone call.
 
it is just a works pension, but with shares crashing and i am guessing they will continue to do so for a bit yet, thought it might be safer just to stick the money in the back until things bottom out
 
You are getting tax relief on them ie it comes out of your pay before tax is calculated. This is quite a benefit.

Pension schemes spread their investment so it should not all be in shares.

A few years is plenty of time for markets to recover, it's been on a long bull run so some correction was due.

I reckon your pension will benefit more for the contributions than what you would get elsewhere.
 
Yes Millbrook is right. Your work pension scheme will be weighted across many different asset classes. Bonds equities and even commodities and property and also hedged against currency movement if some of these assets are based outside UK.

Private pension investment give you a much greater control but not all of where your money goes.

If the work pension trustees are worth their salt your pension should have not suffered not much if at all during recent movements.
but these are exceptional times
 
Cheers everyone, sounds like best to play the long game and keep adding to the pension as usual, fingers crossed the world does not be end..
 
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