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Index Fund vs Pension Fund

Including Financial Independence and Retiring Early (FIRE)
ConfusedFirey
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Index Fund vs Pension Fund

#400256

Postby ConfusedFirey » March 30th, 2021, 9:16 am

Hello everyone, first post on here having just discovered it. I'll dive straight in.

I am currently in the Fire Service and have another 30/35 years ahead of me. 5 years ago I began getting really interested in finance and have since read a plethora of investment books. I love John Bogles work and the idea of passively owning an index fund. I dont have the time nor skill to identify individual companies for my own portfolio so liked the idea of tracking an entire market. I opened a Vanguard S&P Total Market Index (U.S Equities 100%) Accumulation fund in September 2017 and have been depositing a small amount (£100) every month.

Recent changes to my pension scheme made me sit up and actually calculate what my pension would be worth when I retire. In todays money it'll be worth £18,450pa post tax. Assuming I live until I'm 95 that gives a worth of £553,500. My contributions are 12.9% of my gross wage (£341.50pm). This is assuming no changes have been made (its already changed twice in the 11 years I've been a Firefighter, and not for the better).

I intend on coming out of the Pension and paying 12.9% (£270) of my net wage into my Vanguard account per month, leaving me with the same monthly net income. I'll actually be paying closer to £400 due to overtime and other bonuses not being pensionable, but £270 keeps it a fair comparison. In order to match the value of my pension at age 95 I need a 7.65% annual compounded return over those 35 years. Considering the average annual compounded return is 9.7% I feel 7.65% isn't outside the realms of possibility. It should also be noted, these calculations assume I will completely divest my £553,500 when I hit retirement age. I won't be doing this, I'll be switching it to a low volatility income fund but this keeps things simple(ish).

So my question is this: Can I create some kind of means of tracking my investments (in 5 year increments) so I know my investments are on track? At first glance it seems easy, but once you delve into the nitty gritty it gets hard. Example: The current return on my Vanguard fund is 75% over the (just about) 5 years I've had it open, so on average it's increased by 15% per year. However, the compounded return on that is actually 11.85% per year. This is because shares don't generate interest which I then reinvest, instead the growth of the companies who's shares I own mathematically represent a yearly 11.85% compounded growth rate (as far as I understand it?). So is there anyway to reconcile the difference between the exponential growth of compounded interest with the value increase of an index fund so I can create projections to ensure my investments are on track?

TIA!
Moderator Message:
Moved from Share Ideas (left a link so the OP doesn't think his post has been deleted).- Chris

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Re: Index Fund vs Pension Fund

#400278

Postby Urbandreamer » March 30th, 2021, 10:53 am

Welcome to the boards, and your first steps on a long term investment road.

I would strongly recommend that you think very carefully before leaving your existing pension. In my experience many pensions offered by employers and in particular public service employers are very good. You also don't need to leave. You could actually continue yet have a SIPP pension as well. This is what I do, because I enjoy the act of investing. Alternatively you could use a standard ISA which would give you flexibility early in life, which is what I did when younger. Those ISA savings will support me when I retire, alongside the pensions.

In general the more and earlier that you can contribute to long term savings (a pension) the better the outcome. I would also argue that the more interest that you pay in what is being done, even if you actually make few changes, the better. Most people take on far too little risk early in their long term savings.

How much to pay? Well only you know your finances and what you can afford. Your figure of 12.9% seems a bit low to me, though the projections don't look bad, assuming that you get a full state pension as well.

Personally I am an active investor, but even choosing to invest in a passive fund 100% invested in the USA IS an active decision. Indeed it's unlikely that your pension takes such risks. UK pensions seeking modest risks will invest more heavily in the UK equities and bonds. This is not because they think that the UK will perform better but because it reduces the currency and market risk. They tend to believe that people are more interested in the downside than the upside of investing.

My employer subcontracts group advice to a finance firm who have invested the pension first through Scottish Widows and more recently through Aviva. In each case you could broadly change what the pension was invested in. My company pension would be considered high risk as I have 90% equities of which only 32% are in a UK tracker. My SIPP is even worse (from a conventional view) as I indulge my investment hobby there.

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Re: Index Fund vs Pension Fund

#400324

Postby mc2fool » March 30th, 2021, 1:10 pm

ConfusedFirey wrote:So my question is this: Can I create some kind of means of tracking my investments (in 5 year increments) so I know my investments are on track? At first glance it seems easy, but once you delve into the nitty gritty it gets hard. Example: The current return on my Vanguard fund is 75% over the (just about) 5 years I've had it open, so on average it's increased by 15% per year. However, the compounded return on that is actually 11.85% per year. This is because shares don't generate interest which I then reinvest, instead the growth of the companies who's shares I own mathematically represent a yearly 11.85% compounded growth rate (as far as I understand it?). So is there anyway to reconcile the difference between the exponential growth of compounded interest with the value increase of an index fund so I can create projections to ensure my investments are on track?

Yes, the arithmetic average of 75%/5 doesn't produce anything useful. :D

If you just want a quick and easy way of getting the compound annual growth rate, then https://www.thecalculatorsite.com/finance/calculators/cagr-calculator.php will do the job for you.

If you want to calculate it yourself, then it's: ((1.75^(1/5) - 1) * 100, where ^ means to the power of, and obviously you replace the .75 with the overall % gain and the 5 with the number of years.

If you want to calculate it with a series of cashflows, e.g. you bunged in say £10K to start, and then added £300 each month for several years, and the end total is £nnK, then you can use the Excel XIRR function to get the compound annual growth rate. See https://support.microsoft.com/en-us/office/xirr-function-de1242ec-6477-445b-b11b-a303ad9adc9d

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Re: Index Fund vs Pension Fund

#400527

Postby ConfusedFirey » March 31st, 2021, 10:13 am

Urbandreamer wrote:Welcome to the boards, and your first steps on a long term investment road.

I would strongly recommend that you think very carefully before leaving your existing pension. In my experience many pensions offered by employers and in particular public service employers are very good. You also don't need to leave. You could actually continue yet have a SIPP pension as well. This is what I do, because I enjoy the act of investing. Alternatively you could use a standard ISA which would give you flexibility early in life, which is what I did when younger. Those ISA savings will support me when I retire, alongside the pensions.

In general the more and earlier that you can contribute to long term savings (a pension) the better the outcome. I would also argue that the more interest that you pay in what is being done, even if you actually make few changes, the better. Most people take on far too little risk early in their long term savings.

How much to pay? Well only you know your finances and what you can afford. Your figure of 12.9% seems a bit low to me, though the projections don't look bad, assuming that you get a full state pension as well.

Personally I am an active investor, but even choosing to invest in a passive fund 100% invested in the USA IS an active decision. Indeed it's unlikely that your pension takes such risks. UK pensions seeking modest risks will invest more heavily in the UK equities and bonds. This is not because they think that the UK will perform better but because it reduces the currency and market risk. They tend to believe that people are more interested in the downside than the upside of investing.

My employer subcontracts group advice to a finance firm who have invested the pension first through Scottish Widows and more recently through Aviva. In each case you could broadly change what the pension was invested in. My company pension would be considered high risk as I have 90% equities of which only 32% are in a UK tracker. My SIPP is even worse (from a conventional view) as I indulge my investment hobby there.


Hi there, thanks for the reply!

Unfortunatly 12.9% is the maximum I can contribute to the Pension scheme. It should also be noted I don't have a 'pot' which is invested. My payments pay the pension of members who have already retired, it's actually akin to ponzi scheme. I actually don't know how my pension is accrued, but I'm very certain it isn't invested and I can't find much information on the SPPA website. When I retire I won't have access to any of the money I've paid in. Instead I get £2100pm (pre tax) until I die. The £553,000 sum was worked out by factoring in the tax and then assuming I live to 95. I then multiplied the yearly pension by the difference between my retirement age and when I turn 95. It should also be noted the £553,000 sum was accrued through a 47 year career, paying £341pm into the scheme. As far as I'm aware, an investment horizon of 47 years with £341 paid monthly, an end sum of £553,000 is quite mediocre (4% compounded per year) when compared to the potential returns of an index fund? I also don't like being trapped by the pension if it changes again. A perfect example is a number of my colleagues experience. They were due to retire at 50, but the pension was changed and they now need to work to 60 with no increase to the value of their pension. It's pretty shocking what happened to them.

I've never heard of a SIPP pension so thanks for the info on that, that will be my days reading ha. From a quick Google it does look similar to an idea I have. I currently pay £100 into my Vanguard ISA but could easily pay another £200-300. So I did think of keeping my pension going and running my investments alongside it, giving me the best of both worlds, albeit lowering my monthly expendable income slightly.

I wish someone had taught me the value of investing at a young age. Even now when I talk about it to friends or colleagues they look at me like I'm dreaming. It seems a very alien subject to the majority of the working class.

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Re: Index Fund vs Pension Fund

#400529

Postby ConfusedFirey » March 31st, 2021, 10:17 am

mc2fool wrote:
ConfusedFirey wrote:So my question is this: Can I create some kind of means of tracking my investments (in 5 year increments) so I know my investments are on track? At first glance it seems easy, but once you delve into the nitty gritty it gets hard. Example: The current return on my Vanguard fund is 75% over the (just about) 5 years I've had it open, so on average it's increased by 15% per year. However, the compounded return on that is actually 11.85% per year. This is because shares don't generate interest which I then reinvest, instead the growth of the companies who's shares I own mathematically represent a yearly 11.85% compounded growth rate (as far as I understand it?). So is there anyway to reconcile the difference between the exponential growth of compounded interest with the value increase of an index fund so I can create projections to ensure my investments are on track?

Yes, the arithmetic average of 75%/5 doesn't produce anything useful. :D

If you just want a quick and easy way of getting the compound annual growth rate, then... will do the job for you.

If you want to calculate it yourself, then it's: ((1.75^(1/5) - 1) * 100, where ^ means to the power of, and obviously you replace the .75 with the overall % gain and the 5 with the number of years.

If you want to calculate it with a series of cashflows, e.g. you bunged in say £10K to start, and then added £300 each month for several years, and the end total is £nnK, then you can use the Excel XIRR function to get the compound annual growth rate.


This is exactly what I was looking for. Thanks a bunch... Now to figure out how to work Excel :lol:

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Re: Index Fund vs Pension Fund

#400535

Postby xxd09 » March 31st, 2021, 10:46 am

Just my penny’s worth as a retiree of 75-17 years retd
You would loses the employers contributions if you left the scheme
Also these schemes have good ancillary benefits especially if you are married with children ie widows pension etc
I have a wife with aTeachers pension- been a good investment
You can run a SIPP along side your Fireman’s pension-be aware of the LTA
Run an ISA also which allows you access to your money at any time unlike Pensions-not available before 57?
Live frugally ,save hard and use global index trackers -equities and bonds(cheap simple and easy to understand)
Monevator.com a good website for advice and has a good comparison sheet for investment platforms
xxd09

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Re: Index Fund vs Pension Fund

#400541

Postby WickedLester » March 31st, 2021, 11:16 am

Does your fireman's pension rise with inflation as my father's civil service one does. If so that would be a useful benefit to lose by opting out.

I think I would stay in the scheme personally, at least you have certainty.

If you have spare money to invest, open a low cost SIPP and contribute it to that, you'll also benefit from tax relief so every £100 you contribute will get you a further 25% from the government and you can draw 25% of the scheme tax free when you hit 57.

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Re: Index Fund vs Pension Fund

#400546

Postby Shelford » March 31st, 2021, 11:22 am

Please do NOT leave your fire service pension until you find out a) what the employer pays in on your behalf and how this is linked to your own contributions if at all b) whether your pension is a DC or DB pension scheme c) what extras are provided as part of the pension scheme d) whether they'd be prepared to pay the same percentage of your salary into a SIPP. The latter is unlikely. It is also possible that you get various valuable fringe benefits like life insurance which (assuming you'd want to continue the protection) would cost you. As other posters have said, run a SIPP pension alongside your fire service one if you want the thrills and excitement of managing your own investments.

Shelford

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Re: Index Fund vs Pension Fund

#400559

Postby Spet0789 » March 31st, 2021, 12:04 pm

For the love of God, don’t leave the Fire Service scheme!

To achieve the same benefits as you have now (index-linked, guaranteed by the U.K. government, probably with a spouse benefit also) would probably cost at least 50 times your future income. In other words, your £18k pension would cost about £1 million to buy in today’s money.

There’s no better deal on offer. I suspect that for every £1 you put in, you get £3 of value. The contributions massively understate the value of the pension.

As a taxpayer and the father of future taxpayers who who’ll have to pay the bills, I oppose all this. If I ruled the world, I’d give Firefighters an immediate 25% pay rise and tell them to make their own pension arrangements. The country would be better off.

But as a fellow poster, I implore you to stay in the fire service scheme. By all means make your own provisions on the side of course.

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Re: Index Fund vs Pension Fund

#400563

Postby ursaminortaur » March 31st, 2021, 12:18 pm

Shelford wrote:Please do NOT leave your fire service pension until you find out a) what the employer pays in on your behalf and how this is linked to your own contributions if at all b) whether your pension is a DC or DB pension scheme c) what extras are provided as part of the pension scheme d) whether they'd be prepared to pay the same percentage of your salary into a SIPP. The latter is unlikely. It is also possible that you get various valuable fringe benefits like life insurance which (assuming you'd want to continue the protection) would cost you. As other posters have said, run a SIPP pension alongside your fire service one if you want the thrills and excitement of managing your own investments.

Shelford


The OP mentions the SPPA and it being a fireman's pension.

That means it is a DB pension. The latest version of which the 2015 is a career average pension scheme with a normal pension age of 60 and an accrual rate of 1/61.6 of pensionable pay in each year revalued by CPI and death in service benefits.

https://pensions.gov.scot/firefighters/about-firefighters-pensions/firefighters-pension-scheme-2015

https://pensions.gov.scot/sites/default/files/2019-12/FPS_2015_guide.pdf


The employer contribution to the 2015 scheme is 26.8% of pensionable pay.

https://pensions.gov.scot/sites/default/files/2019-06/Fire%20Scotland%20-%20Scheme%20Specific%20Rates%20-%20Final%20-%2028%20Feb%202019.pdf

We have calculated separate employer contribution rates over the implementation period for the members accruing benefits in the 1992 Scheme (including special retained members of the 2006 Scheme), in the 2006 Scheme (excluding special retained members) and in the 2015 Scheme, after allowance for the expected ill-health additional contributions as set out above and allocating the same percentage of pay to each rate for past service effects. These are set out below, with further details in the Appendix.
> 1992 Scheme (including special members of 2006 Scheme): 39.1% of pensionable pay, plus ill health additional contributions.
> 2006 Scheme (excluding special members): 24.5% of pensionable pay, plus ill health additional contributions.
> 2015 Scheme: 26.8% of pensionable pay, plus ill health additional contributions.



Opting out and transferring to a DC scheme would require taking financial advice if the transfer valuation is more than £30,000 and I'd be extremely surprised if the advice was NOT to do it.

(Also note there is an option to contribute more and buy additional pension - though this isn't as good as in previous schemes where you could just buy additional years.
https://pensions.gov.scot/firefighters/ ... on-savings

Additional Pension can be bought in amounts of annual pension of £250 up to a current maximum of £6500. This maximum amount is index linked and may change in the future.

)
Last edited by ursaminortaur on March 31st, 2021, 12:24 pm, edited 1 time in total.

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Re: Index Fund vs Pension Fund

#400564

Postby Spet0789 » March 31st, 2021, 12:19 pm

:!:
WickedLester wrote:Does your fireman's pension rise with inflation as my father's civil service one does. If so that would be a useful benefit to lose by opting out.

I think I would stay in the scheme personally, at least you have certainty.

If you have spare money to invest, open a low cost SIPP and contribute it to that, you'll also benefit from tax relief so every £100 you contribute will get you a further 25% from the government and you can draw 25% of the scheme tax free when you hit 57.


Sounds like the OP is in his/her 20s. The pension access age will not be 57 for them. Most likely 60 plus.

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Re: Index Fund vs Pension Fund

#400567

Postby Spet0789 » March 31st, 2021, 12:22 pm

ursaminortaur wrote:
Shelford wrote:Please do NOT leave your fire service pension until you find out a) what the employer pays in on your behalf and how this is linked to your own contributions if at all b) whether your pension is a DC or DB pension scheme c) what extras are provided as part of the pension scheme d) whether they'd be prepared to pay the same percentage of your salary into a SIPP. The latter is unlikely. It is also possible that you get various valuable fringe benefits like life insurance which (assuming you'd want to continue the protection) would cost you. As other posters have said, run a SIPP pension alongside your fire service one if you want the thrills and excitement of managing your own investments.

Shelford


The OP mentions the SPPA and it being a fireman's pension.

That means it is a DB pension. The latest version of which the 2015 is a career average pension scheme with a normal pension age of 60 and an accrual rate of 1/61.6 of pensionable pay in each year revalued by CPI and death in service benefits.

https://pensions.gov.scot/firefighters/about-firefighters-pensions/firefighters-pension-scheme-2015

https://pensions.gov.scot/sites/default/files/2019-12/FPS_2015_guide.pdf


The employer contribution to the 2015 scheme is 26.8% of pensionable pay.

https://pensions.gov.scot/sites/default/files/2019-06/Fire%20Scotland%20-%20Scheme%20Specific%20Rates%20-%20Final%20-%2028%20Feb%202019.pdf

We have calculated separate employer contribution rates over the implementation period for the members accruing benefits in the 1992 Scheme (including special retained members of the 2006 Scheme), in the 2006 Scheme (excluding special retained members) and in the 2015 Scheme, after allowance for the expected ill-health additional contributions as set out above and allocating the same percentage of pay to each rate for past service effects. These are set out below, with further details in the Appendix.
> 1992 Scheme (including special members of 2006 Scheme): 39.1% of pensionable pay, plus ill health additional contributions.
> 2006 Scheme (excluding special members): 24.5% of pensionable pay, plus ill health additional contributions.
> 2015 Scheme: 26.8% of pensionable pay, plus ill health additional contributions.



Opting out and transferring to a DC scheme would require taking financial advice if the transfer valuation is more than £30,000 and I'd be extremely surprised if the advice was NOT to do it.


Typo? The advice will surely be NOT to do it.

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Re: Index Fund vs Pension Fund

#400568

Postby ursaminortaur » March 31st, 2021, 12:26 pm

Spet0789 wrote:
ursaminortaur wrote:
Shelford wrote:Please do NOT leave your fire service pension until you find out a) what the employer pays in on your behalf and how this is linked to your own contributions if at all b) whether your pension is a DC or DB pension scheme c) what extras are provided as part of the pension scheme d) whether they'd be prepared to pay the same percentage of your salary into a SIPP. The latter is unlikely. It is also possible that you get various valuable fringe benefits like life insurance which (assuming you'd want to continue the protection) would cost you. As other posters have said, run a SIPP pension alongside your fire service one if you want the thrills and excitement of managing your own investments.

Shelford


The OP mentions the SPPA and it being a fireman's pension.

That means it is a DB pension. The latest version of which the 2015 is a career average pension scheme with a normal pension age of 60 and an accrual rate of 1/61.6 of pensionable pay in each year revalued by CPI and death in service benefits.

https://pensions.gov.scot/firefighters/about-firefighters-pensions/firefighters-pension-scheme-2015

https://pensions.gov.scot/sites/default/files/2019-12/FPS_2015_guide.pdf


The employer contribution to the 2015 scheme is 26.8% of pensionable pay.

https://pensions.gov.scot/sites/default/files/2019-06/Fire%20Scotland%20-%20Scheme%20Specific%20Rates%20-%20Final%20-%2028%20Feb%202019.pdf

We have calculated separate employer contribution rates over the implementation period for the members accruing benefits in the 1992 Scheme (including special retained members of the 2006 Scheme), in the 2006 Scheme (excluding special retained members) and in the 2015 Scheme, after allowance for the expected ill-health additional contributions as set out above and allocating the same percentage of pay to each rate for past service effects. These are set out below, with further details in the Appendix.
> 1992 Scheme (including special members of 2006 Scheme): 39.1% of pensionable pay, plus ill health additional contributions.
> 2006 Scheme (excluding special members): 24.5% of pensionable pay, plus ill health additional contributions.
> 2015 Scheme: 26.8% of pensionable pay, plus ill health additional contributions.



Opting out and transferring to a DC scheme would require taking financial advice if the transfer valuation is more than £30,000 and I'd be extremely surprised if the advice was NOT to do it.


Typo? The advice will surely be NOT to do it.


Sorry, That is what I said - I'd be extremely surprised if the advice was NOT to do it. Probably the only circumstance in which a transfer would be approved would be if the OPs life expectancy past retirement was extremely short - and given the OP's age it is difficult to see how any financial adviser would make that determination now. However there may be other rare reasons why an adviser might approve a transfer - so I won't rule it out entirely even though it would be extremely unlikely.
Last edited by ursaminortaur on March 31st, 2021, 12:34 pm, edited 3 times in total.

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Re: Index Fund vs Pension Fund

#400569

Postby Alaric » March 31st, 2021, 12:30 pm

Spet0789 wrote:Sounds like the OP is in his/her 20s. The pension access age will not be 57 for them. Most likely 60 plus.


In the past, public sector schemes have been generous with their ill health early retirement benefits. In other words if there's a plausible health issue, they would not only allow benefits to be taken early but also not reduce them for early payment.

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Re: Index Fund vs Pension Fund

#400570

Postby Spet0789 » March 31st, 2021, 12:30 pm

ursaminortaur wrote:
Spet0789 wrote:
ursaminortaur wrote:
The OP mentions the SPPA and it being a fireman's pension.

That means it is a DB pension. The latest version of which the 2015 is a career average pension scheme with a normal pension age of 60 and an accrual rate of 1/61.6 of pensionable pay in each year revalued by CPI and death in service benefits.

https://pensions.gov.scot/firefighters/about-firefighters-pensions/firefighters-pension-scheme-2015

https://pensions.gov.scot/sites/default/files/2019-12/FPS_2015_guide.pdf


The employer contribution to the 2015 scheme is 26.8% of pensionable pay.

https://pensions.gov.scot/sites/default/files/2019-06/Fire%20Scotland%20-%20Scheme%20Specific%20Rates%20-%20Final%20-%2028%20Feb%202019.pdf

We have calculated separate employer contribution rates over the implementation period for the members accruing benefits in the 1992 Scheme (including special retained members of the 2006 Scheme), in the 2006 Scheme (excluding special retained members) and in the 2015 Scheme, after allowance for the expected ill-health additional contributions as set out above and allocating the same percentage of pay to each rate for past service effects. These are set out below, with further details in the Appendix.
> 1992 Scheme (including special members of 2006 Scheme): 39.1% of pensionable pay, plus ill health additional contributions.
> 2006 Scheme (excluding special members): 24.5% of pensionable pay, plus ill health additional contributions.
> 2015 Scheme: 26.8% of pensionable pay, plus ill health additional contributions.



Opting out and transferring to a DC scheme would require taking financial advice if the transfer valuation is more than £30,000 and I'd be extremely surprised if the advice was NOT to do it.


Typo? The advice will surely be NOT to do it.


Sorry, That is what I said - I'd be extremely surprised if the advice was NOT to do it.


Maybe I have confused myself!

I am sure that an independent advisor would tell the OP to remain in the DB scheme and not to transfer to DC.

Rather than being surprised, I would EXPECT that the advice would be NOT to transfer.

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Re: Index Fund vs Pension Fund

#400572

Postby Spet0789 » March 31st, 2021, 12:31 pm

Alaric wrote:
Spet0789 wrote:Sounds like the OP is in his/her 20s. The pension access age will not be 57 for them. Most likely 60 plus.


In the past, public sector schemes have been generous with their ill health early retirement benefits. In other words if there's a plausible health issue, they would not only allow benefits to be taken early but also not reduce them for early payment.


That’s true but this comment referred to a SIPP.

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Re: Index Fund vs Pension Fund

#400574

Postby Alaric » March 31st, 2021, 12:34 pm

Spet0789 wrote:I am sure that an independent advisor would tell the OP to remain in the DB scheme and not to transfer to DC.


That would be particularly the case if their employment continued and they were in effect forfeiting the extra remuneration implicitly implied by the employer contributions and the guarantees of the defined benefits.

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Re: Index Fund vs Pension Fund

#400581

Postby ursaminortaur » March 31st, 2021, 12:42 pm

Spet0789 wrote:
ursaminortaur wrote:
Spet0789 wrote:
Typo? The advice will surely be NOT to do it.


Sorry, That is what I said - I'd be extremely surprised if the advice was NOT to do it.


Maybe I have confused myself!

I am sure that an independent advisor would tell the OP to remain in the DB scheme and not to transfer to DC.

Rather than being surprised, I would EXPECT that the advice would be NOT to transfer.


Having reread what I had written I can now see that it could be read in both the way I had intended it and as you interpreted it. So sorry for any confusion.

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Re: Index Fund vs Pension Fund

#400582

Postby Spet0789 » March 31st, 2021, 12:44 pm

ursaminortaur wrote:
Spet0789 wrote:
ursaminortaur wrote:
Sorry, That is what I said - I'd be extremely surprised if the advice was NOT to do it.


Maybe I have confused myself!

I am sure that an independent advisor would tell the OP to remain in the DB scheme and not to transfer to DC.

Rather than being surprised, I would EXPECT that the advice would be NOT to transfer.


Having reread what I had written I can now see that it could be read in both the way I had intended it and as you interpreted it. So sorry for any confusion.


i think if you’d make your negative double we’d be saying the same thing.

You’d be surprised if the advice was not not to transfer.

Sorry to be a bit pedantic but trying to prevent the OP making a £100s of k mistake!

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Re: Index Fund vs Pension Fund

#400583

Postby ursaminortaur » March 31st, 2021, 12:49 pm

Spet0789 wrote:
ursaminortaur wrote:
Spet0789 wrote:
Maybe I have confused myself!

I am sure that an independent advisor would tell the OP to remain in the DB scheme and not to transfer to DC.

Rather than being surprised, I would EXPECT that the advice would be NOT to transfer.


Having reread what I had written I can now see that it could be read in both the way I had intended it and as you interpreted it. So sorry for any confusion.


i think if you’d make your negative double we’d be saying the same thing.

You’d be surprised if the advice was not not to transfer.

Sorry to be a bit pedantic but trying to prevent the OP making a £100s of k mistake!


Understood - it is best to be clear.


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