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May 2022
8:46pm, 12 May 2022
16,471 posts
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Cerrertonia
Equities generally pay a yield of close to 3%, and the market appreciates by <mumble> percent too (above inflation), so 4% for drawdown is an incredibly conservative estimate. I think it would be a rare and poorly-invested portfolio that shrank at all in real terms if you took out 4% per annum.
The 4% figure assumes an inflation-adjusted withdrawal, not a static one. It comes from back-testing of a 50/50 bond/share US portfolio. Essentially there haven't been any 30-year periods where withdrawing 4% a year has seen you run out of money before the 30-years is up, although there were one or two times where it was a close thing. Many people think it's not conservative enough for the current era.
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May 2022
9:01pm, 12 May 2022
2,189 posts
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Totriornottotri
The U.K. figure is normally closer to 3% but the maths is easier for 4% š
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May 2022
7:40am, 13 May 2022
42,305 posts
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HappyG(rrr)
I think I'm just going to write to all the big insurers/pension companies one by one with all my details.
So far I've tried Phoenix (who manage a lot of closed funds) and had a tip that Old Mutual Wealth (now ReAssure) and Aegon might have taken over the company pension from that time, so am writing to them too.
For the sake of a few Ā£0.85p stamps, might just be worth blatting out a dozen letters. Shotgun approach!  G
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May 2022
7:44am, 13 May 2022
42,306 posts
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HappyG(rrr)
Once I've found all my pensions (7 separate funds so far, hopefully 8 if I find this other one), is it worth combining them? I was told by an adviser it wasn't but I think it's just because the paperwork was a nightmare and he wasn't getting any decent commission out of it.
I don't need/want it to "make" money, I'd just like it a. in one place for peace of mind and b. to not lose money! Some of them in last 10 years have made less than the fees on them, so were going DOWN!
It's not much, about Ā£250K (which I recognise is tiny in pensions land). I intend (by which I mean I am forced to!) work another 10 years at least, I think, so I can hopefully still rebuild it. (Lots of periods of self employment and general destitution!)
Cheers, G
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May 2022
8:01am, 13 May 2022
7,043 posts
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Fizz :-)
Do any of the pensions have āspecialā benefits? WW has a pension with a Ā£1500-ish transfer value, that is going to pay him around Ā£200 per year.
Can you see what the fees are? Maybe move the expensive ones into a cheaper one.
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May 2022
8:02am, 13 May 2022
7,044 posts
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Fizz :-)
Hopefully arbster will be along shortly with proper guidance.
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May 2022
8:15am, 13 May 2022
27,234 posts
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Johnny Blaze
The transfer penalty for my Phoenix zombie pension is about 30% of the total value - which is essentially their way of coercing you into keeping your money with them.
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May 2022
8:19am, 13 May 2022
42,310 posts
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HappyG(rrr)
Good point Fizz, one of them has a defined benefit (not final salary, but some kind of average, or at least it was). And JB too - transfer penalties. Might be better just to stay where they are. I'm better at managing them now, and updating addresses etc.
Combination of poor admin, divorce, house moves (including living out of back of a car for a while) etc. It's been settled since 2007 or so, but by then paperwork from 90s was very much lost! G
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May 2022
8:21am, 13 May 2022
5,148 posts
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K5 Gus
It's a while since I worked in the pensions industry, but if any of your multiple pension pots are a "trivial" amount, you used to be able to take them as a lump sum and didn't need to convert them to an annuity/drawdown.
Whether that option still exists, and what the trivial amount is ( maybe Ā£20k or Ā£30k rings a bell ?) then not sure.
Obviously means less per month, but may be useful if you need a lump sum for anything and were happy that all the other pots would provide enough monthly.
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May 2022
8:22am, 13 May 2022
22,639 posts
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Bazoaxe
HG. Is your missing pension DB or DC?
If DC there is a pensions dashboard planned for next year where all providers are expected to share details and tracking old pensions down is easier.
As has been said combining depends on whatās with each one. Some may have guarantees you donāt want to lose and some may have charges you donāt want to pay
We have combined all of mrs aces many pots into two. Most into the lowest charging one and the rest in the current one she is In.
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Jigs