21 Feb 2020, 20:19
23 Feb 2020, 04:33
23 Feb 2020, 15:10
renrag40 wrote:The more I look into CDC pensions the more unease I have about them. The article above just adds to the unease. I don’t like the idea of being a guinea pig for anything..... especially, anything to do with my pension provision.
I don’t think I would want to join a CDC scheme if I was in my mid 20s...... after contributing for nearly 50 years what are they guaranteed? Nothing really .... a promise..... an “ambition amount”.
I can see what’s in it for RM....... stump up their contributions (which they are already moaning about) and wash their hands of it........ if it goes tits up....... sorry we’ve met our limited obligations....... tough, enjoy your less ambitious “ambition amount”.
People in retirement who have contributed their whole working life want and deserve to have certainty with their finances........... they don’t want to find their pension income being cut year on year due to the financial vandalism and recklessness perpetrated by greedy city fat cats who quite happily nearly destroyed the whole financial system in 2008 and then demanded bailing out ....... how many of them went to prison for their actions? Any ideas? They were selling investments they knew were toxic but that didn’t matter. As a direct consequence of the continual quantitive easing that central banks have been forced to do to keep the show on the road for over a decade the US is now sitting on an asset bubble time bomb......... the historic average PE of S & P 500 stocks is 15...... the current average PE is 24 ....... what do we think is going to happen in the near future..... (light bulb moment) a 30%+ stock market correction........ hows that going to effect the “ambition amount” of people already receiving CDC pensions....... perhaps we should go and ask the Dutch..... a lot of their pensions are a form of CDC and they are having their pension cut on a yearly basis. Though in their case the pension provision is far more generous than ours to start with...... might have something to do with the fact that their average pension contributions (employee and employer combined) are around 25% of their pay.
I’d just like to state that I am not that concerned about my own situation as I will not be greatly effected by the introduction of the CDC pension because I’m 56 this year and the majority of my pension is (thank God!!) Defined Benefit. My concerns are for people in their 20s and 30s who could contribute all their working lives and through no fault of their own be left in penury in their old age...... because they are working to an “ambition amount” which isn’t even guaranteed when they are actually receiving it.
23 Feb 2020, 16:02
heapsy wrote:Great post. In effect RM are hedging their bets with our money.
I have said it before that I also am unhappy with the scheme. For one, why an NRA of 67? Yes I know the state pension is moving, but how many people in delivery will last until 67? Discrimination?
What is the investment strategy going to be and are there any plans to "life style" the scheme to protect those approaching 67? Some of those people may have already left the business due to ill health / injury.
What makes anybody actually think it will work when they couldn't, or wouldn't make the previous schemes work?
23 Feb 2020, 19:20
23 Feb 2020, 20:11
23 Feb 2020, 20:40