Pensions..

[T4tomo]

significant losses of capital sustained by the pension pots of family members during the last financial crisis.

what crises were these as any diminution in value that occurred in mine was recovered as the markets cycled up again. Its a long term investment so one shouldn't be concerned about short term hits?

One also might consider where would the cash have gone had they not put it in a pension scheme? because if they had spent it nstead then there would be no funds left to recover after temporary market corrections /. Crisis

 

[esoxlucius]

Pensions are long term and ups and downs are expected through the duration. You can take these fluctuations with a pinch of salt in the early years but not so much when your retirement day is looming!

In fact it can be scary when something like COVID or a war hits and pension funds plummet. And isn't it just great that they can lose a fortune in a short time, but then take an age to get back up to what they were!! Typical.

I asked my personal pension guy if I could freeze my assets completely. The obvious downside is your fund won't go up, but on the flip side it won't go down either!! And in these uncertain times I'll take that all day long.

My provider said all you can do is change your fund to an ultra low risk one, so losses and gains will be minimal. You simply can't freeze your fund, it's not an option at all. Maybe this is because providers would then no longer be able to charge you their annual management fees??

 

[FrankCrank]

I wasn't aware of that (more recent rule?). Is the last top-up deadline based on retirement age or when you start taking your pension given you can delay starting your New State Pension and then get a higher pension? I looked at delaying starting taking New State Pension but thought the numbers (at that time) made delaying not sensible (ie the increased pension amount vs lost pension income whilst delaying has too long a break even period.

Not sure what applies if you defer taking your Gov pension, might be best to visit the Gov website on that. It was on the Gov website that it stated no contributions can be made in the final year before pensionable age, that's all I know.

 

[nogoodnamesleft]

Not sure what applies if you defer taking your Gov pension, might be best to visit the Gov website on that. It was on the Gov website that it stated no contributions can be made in the final year before pensionable age, that's all I know.

Doesn't apply to me as I've already topped-up and already drawing New State Pension.

 

[Pat "5mph"]

What government pension scheme do you mean? The State pension?

I think @wafter means Nest, the government pension scheme a lot of employers use.

 

[Fastpedaller]

Pensions are long term and ups and downs are expected through the duration. You can take these fluctuations with a pinch of salt in the early years but not so much when your retirement day is looming!

In fact it can be scary when something like COVID or a war hits and pension funds plummet. And isn't it just great that they can lose a fortune in a short time, but then take an age to get back up to what they were!! Typical.

I asked my personal pension guy if I could freeze my assets completely. The obvious downside is your fund won't go up, but on the flip side it won't go down either!! And in these uncertain times I'll take that all day long.

My provider said all you can do is change your fund to an ultra low risk one, so losses and gains will be minimal. You simply can't freeze your fund, it's not an option at all. Maybe this is because providers would then no longer be able to charge you their annual management fees??

I had a small private pension that plummeted as it matured late Feb 2020 (covid)

 

[fossyant]

Take a look at what your employer offers as you'd be wise to start contributing as they usually add some on top - if you don't they won't always top it up. It's extra cash in your pension.

 

[Dorset Boy]

2015 was when the State Pension changed - moving to the new flat rate based on 35 years contributions. It is at a significantly higher level than the old basic State Pension that was based on 30 years contributions.
The old State Pension also had the potential to be topped up through the Graduated Retirement Pension, then Serps, then S2P if your earning weren't too high.