Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
I am expecting to lose a massive chunk of our Pension within the next few years as the Trustees suffer from recency bias with regards to investing in debt, they will also be looking to invest in ideology based investments such as ESG.
Of course I am only a humble Postman, what do I know?
You are in the DB scheme aren't you?
If so, your pension will not go down!
No offence, but you don't seem to understand how DB schemes work, or able to take on the replies already given.
In nominally terms it won't go down but in real terms the Pension's purchasing power will be destroyed due to persistent inflation.
Too much money has been printed by the BOE and their only way out is to inflate away the debt, the BOE has no intention of tackling inflation.
And by transferring out into cash, it'll lose even more purchasing power!
Plus, don't underestimate the compounding effects of an index linked pension over 20-30 years. Your transferred out money, wherever it ultimately ends up, will need to perform exceptionally well to keep pace.
There's a reason most IFA's won't sanction a transfer!
Does cash lose purchasing power when the market crashes or can it buy more assets?
The outlook for the debt markets and stock markets are dire.
In the short term Cash is King but not in the long term as Central Banks will sacrifice their Currencies.
Your money will lose purchasing power while it's in cash. Whether it regains that once you've transferred to equities will depend on exact percentages and investment choices. It's not a black or white thing.
Dividends need to be factored in too.
As I said earlier, time in the market is better than trying to time the market. Get it wrong and it's possible to miss out on the recovery days.
Take a look at this article as an example: https://blackswanfp.co.uk/why-time-in-t ... investing/
It's difficult to predict where the economy will go.
For the past 14 years the stock market has been propelled by QE money not company value so there are a lot of overvalued stocks and shares out there.
Is that house of cards about to fall now the tap has been turned off?
Usually recessions caused by high inflation result in mass unemployment but the country is facing an employment shortfall.
In no previous recession have people had such a high level of assets locked up in property, will that make a difference? Will we finally see a housing crash after pretty much 30 years of exponential growth?
I don't think two financial analysts can agree on where the economy will end up.
I personally don't think it's time to do anything rash but I could be wrong.