The Retirement Thread
16 lurkers |
176 watchers
12:08pm
12:08pm, 14 Nov 2024
3,433 posts
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Mushroom
The defined benefit (final salary) schemes will not be affected. It is focussing on the 86 (I think) defined contribution local council pensions. They are managed by local officers not fund managers.
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5:36pm
5:36pm, 14 Nov 2024
23,639 posts
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Dave W
Should be savings made from the lower amount of money spent on managing the individual funds as well. That’s the theory anyway.
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5:43pm
5:43pm, 14 Nov 2024
9,040 posts
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um
If the government takes over the guarantor role (as with the miners pension fund), then it allows a lot more speculative investments. Good for the people in the pension fund, less good for the rest of us funding that risk if the investments fail. |
5:46pm
5:46pm, 14 Nov 2024
59,264 posts
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EvilPixie
That last sentence
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5:52pm
5:52pm, 14 Nov 2024
18,115 posts
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jda
So last page you were complaining about the possibility that your pension changes and this page you complain that someone else’s pension may change. I’m guessing you don’t like change 
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6:26pm
6:26pm, 14 Nov 2024
59,268 posts
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EvilPixie
I’m confused I think 😝
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6:39pm
6:39pm, 14 Nov 2024
27,677 posts
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Bazoaxe
I was complaining about trump being elected Then my DC pension value soared, and continues to grow every day I am still complaining about trump being elected. |
6:58pm
6:58pm, 14 Nov 2024
28,463 posts
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TROSaracen
I would be concerned if I had a DC pot and was subject to these changes. Currently funds are invested for the best rate of return (theoretically). The idea of this scheme is that it allows the government to direct/mandate what the funds should be invested in. Things for the public good, to ‘promote growth’ etc. There is only one reason why the Government wants DC pension funds to make the investment: the rate of return is not good and/or the risk is high (hence other potential source of funds have not stepped up). Bring a DC pot, lower returns reduce the size of your pot on retirement. I wouldn’t want my retirement being bet on things that professional investors are giving a swerve to. |
7:07pm
7:07pm, 14 Nov 2024
22,280 posts
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Cerrertonia
TROSaracen wrote: I don't think that's the main purpose of the changes - one of the aims is to reduce overheads/ achieve economies of scale. by combining lots of small local council pension departments. It also allows the much larger funds to take out bigger, more illiquid investments that wouldn't be available or suitable for smaller funds.
The idea of this scheme is that it allows the government to direct/mandate what the funds should be invested in. |
7:15pm
7:15pm, 14 Nov 2024
29,355 posts
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Sigh
LGPS are all annuities, yes? In which case, this is Govt seeking to make up the (presumably undisclosed) shortfall between fund value and potential liability; it'll only be a risk to the beneficiary if the govt also offload their role to underwrite it all.
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