The £50bn Pension Risk: Is your Retirement at Stake?

[@jamesmackey2120]

Hi, thanks for this. 👍🏻 So the government are trying to kick start and fund new business start ups with pension funds and are happy for those of us who are saving hard in our pensions to take the risk. 🤦🏼‍♂️

[@llamudos9809]

Not just a gamble with 5% of your pension pot but 5% of you pot every year!

[@cobbler40]

The city have been working hard for a long time to get their greedy little hands on pension pots. It doesn’t benefit pensioners. The city will lose or steal the money.

[@leodspprince2184]

First thing I did with my pension was switch to a global tracker fund. It's doing well and the LAST people I would allow to decide my allocation would be the government or the pension company 😅😅

[@timg1246]

You can just see how this came about. Some salesman had a session with a senior civil servant at Number 11, and suddenly it becomes the next big thing. You can buy investments specifically for new start ups. They are considered risky. The government suggests these are for "sophisticated investors" with a minimum of £250,000. Now, at the stroke of a pen, they are for everybody.

[@PrinciplesPersonalFinance]

That's so cynical it should have been in the video! 🙃 I joke, we'll see how it will play it. Thanks very much for watching and taking the time to comment.

[@fredatlas4396]

Not civil servants it's the tories, its our tory government since 2010

[@harryzachariou1]

I believe that individuals who actively take an interest in their pension investments would likely opt for funds with a lower concentration of UK companies compared to the default fund, and I include myself in that group. Given this perspective, I anticipate that the recent decision to allocate 5% of the default fund to high-risk UK startups may lead risk-averse individuals to reconsider their investment choices and potentially switch to funds that have a lesser emphasis on UK-based investments. As a result, it is possible that this change could have unintended consequences, contrary to the intended outcome.

[@PrinciplesPersonalFinance]

That's an interesting take Harry, certainly could be an unintended consequence. Although, I fear part of this strategy is acknowledging just how powerful inertia is with the majority of pension savers. Previous research indicated the vast majority of members are within the default fund. Where are with better engagement you'd hope there would be more variety and self-selecting. Grateful for you watching and taking the time to comment. 🙌

[@neilcook1652]

No issue with the proposal, other than it sets a dangerous precedence, and could be the thin end of the wedge…again!

[@cobbler40]

Hunt works full time to benefit the city looking at ways to boost profits and bonuses. If only he and Sunak worked as hard for the electorate.

[@clarkeysam]

When does this change come in? I was already in the process of moving my pensions to a SIPP but I'm currently only moving 1 at a time, to reduce the amount of money out of the market at a time, but given this change, I might change my timeframe.

[@fredatlas4396]

I'm in the Aegon Default Equity & Bond Lifestyle ARC pension fund. It has a very low ongoing fund charge of just 0.06% I think. But not sure if its the best option for me. And I don't know exactly where the fund is invested in I can see some information about this but I think it may well have part of the fund invested in areas that aren't disclosed in the fund information. I've searched online for any better alternatives in the Aegon pension, but to no real avail can't seem to get that information im looking for. We really need a change of government, the vast majority of people in the UK are getting poorer since 2010 and tories in power. Pay the workers more money, then they'll boost the inconomy when they have more spare income to spend into the economy

[@kamcg1049]

Its not for the government or Hunt (who thinks Brexit has no downside to the UK economy) to be involved the investments strategy of personal pensions, that's what fund management companies are paid to do. If Hunt and others want to make investments do it with their own money not with private pensions.

[@mikejk2192]

Absolutely. Its called private for a reason. People are getting distracted with this BBC nonsense when government quietly moves to put their sticky fingers in our private money.

[@gregbaily7971]

For me it's clearly a way to get pension funds to invest in startups / smaller companies at no cost to the government in the hope it will stimulate growth. It has nothing to do with boosting pensions and the £1000 figure is fantasy.

[@PrinciplesPersonalFinance]

Yes, that was my take as-well. Not that investing in smaller companies is a bad thing, but I just felt there is a reasonable chance many pension savers could lose out here. I do hope I'm wrong though. Thanks for watching and taking the time to comment.

[@gregbaily7971]

@@PrinciplesPersonalFinance This guy sums it up nicely for me, a good complement to your video. kzbin.info/www/bejne/ppy2p5-ZaZiVjpI&ab_channel=DamienTalksMoney

[@jackieross3482]

wat age is the right penstion age for men

[@cobbler40]

We all know what the outcome will be

[@chrisharris4223]

I think it’s good and not like it’s massively risky overall. Nice to see some investment in the UK. Interesting the dominance of the default fund. I switched mine up a few years ago picking a variety of funds, tried to spread it about a bit UK, U.S, overseas, ethical etc. 10 funds in all each with quite low fees (my work pension is L&G). The default fund right now is the worst performing of the 10! 😂

[@PrinciplesPersonalFinance]

There's definitely a lot to be said for carefully looking at if the default fund is right for you and your future. 👍 I hope I am wrong here. I like the idea of investing in UK businesses and I think as a country, despite it being fashionable to be negative about the UK, we punch well above our weight in innovation, creating great entrepreneurs and business leaders. ✅ We also derive a lot of our economy's revenue from financial services and I just hope if there is value delivered in this. It's shared between PE firms and pension savers. Thanks for watching and very grateful for you taking the time to comment.

[@chrisharris4223]

@@PrinciplesPersonalFinance thanks for the reply and your wisdom, a great video as always :)

[@PrinciplesPersonalFinance]

@@chrisharris4223 thank you 🙏

[@yinsoen]

More extra funds means more fees and extra volatility, legal and general and most workplace pension all high in fees near 1%

[@chrisharris4223]

@@yinsoen in some cases yes and some of the funds cost more than the original. but ditching all bar 10% of the standard fund and re-distributing it out into others my overall pot is c. 10% better off (over two years)

[@zirconindustries]

Do these issues affect public sector pensions?

[@nepalihercules]

there is no such thing as public sector pension. it comes out straight from the taxes. no money is actually being invested

[@systemx4]

Sounds like a way for the rich and their buddies to get their hands on the masses cash

[@llamudos9809]

2.00% charging fee?????? average Fees on t212 average 0.39% for an ETF

[@petearmstrong2778]

What is the definition of 'pension' in this concept? Only SIPP or money purchase where it impacts one person if they hold the default fund? Private and public pensions? Excludes DB pensions? Impact on pensioners in draw-down? Clarity required. My view of the proposal seems to be providing a pool of money for start-ups in the hope of a couple of them going big ie unicorns whilst the rest will not add value to pensions. Who will fund the systems changes required to implement this? Maybe the MPs pension should be the pilot case and lets see how that goes! 🙂 #justagamble

[@garphill2162]

When Government intervenes on Pension it never ends well.

[@mikejk2192]

Its beyond orvellian. They are acting like CCP in China.

[@XORTION]

wont they end up in the ftse 100 if they do good?

[@PrinciplesPersonalFinance]

Hi, potentially if they do very well but that is far from guaranteed!

[@peterdawson2384]

I do not like the idea of investing my pension in Private Equity funds or Gilts , all funds have fees and bond returns are low , my pension is held in a SIPP , the admin fee is about £200 per year , I ring the broker and buy or sell equities through the LSE , the SIPP is over 20 years old now , historically it has doubled in value every five years. There is no good argument for paying someone to manage your pension. Waking up , making coffee and checking the market at 8.00am , Monday to Friday is a joy , reading the news , plotting what to do on Monday , keeps the old grey matter alive over the weekend. George Osborne gave us all freedom , the chance to keep our SIPPs running forever , take out what we want , when we want , who cares what Jeremy Hunt thinks ?

[@PrinciplesPersonalFinance]

The proposals are certainly a good excuse for people to get intentional with checking their pension funds. It certainly sounds like you're doing that so credit to you. 🙌 Thanks for watching and taking the time to comment.

[@musheopeaus4125]

Nah dawson , index fund set and forget no stress no graft no nothing just dolla

[@bagballgolf2406]

My pension is in 100% equities in a passive world tracking index fund charging 0.12%, cant believe some of the fees you are mentioning here, scandalous

[@89bozzy]

How can someone get in contact with you for advice or simple guidance?

[@PrinciplesPersonalFinance]

Hi, thanks for watching. If you email [e-mail] with your query (please don't put any sensitive data in the email) if it's appropriate to arrange a discussion then we can arrange a Teams or Zoom. I'll do what I can to help with your query. I do try my very best to be as helpful as possible as I'm grateful to everyone who watches my content. I do have to caveat that sometimes the query can only be answered by providing specific advice, or it may not be something I can help with. If it isn't, I try and signpost an area to look or someone else who can potentially help. 👍

[@fredatlas4396]

These private equities companies are extremely risky investments. Just look at what happened with Neil Woodford, the active manager and his UK funds. He changed his investment strategy after keeping to the same strategy for some yrs, which appeared to work well. Part of the new strategy was to invest in private equities plus smaller companies, and it went terribly wrong and many investors list a lot of money. And he then showed his true colours, he wasn't at all interested in his in effect clients, those people who put money into his funds. If you really want to invest in private equity funds then it appears investment trusts are the best vehicle for this but still very risky. I understand there was an ongoing case against Neil to try and get back some of money people lost. As for Neil he really didn't care about his customers, and didn't even want to talk about it despite the fact he made shed loads of money out of his funds, for himself of course. Let this be a lesson to people thinking about taking to much risk, unnecessary risks. Better stick with passive index tracking funds, broad market based index funds with low costs, good diversification

[@PrinciplesPersonalFinance]

I share those concerns! Hope I'm wrong. Thanks for watching. 🙏

[@kevinsyd2012]

Pensions funds have enough clout to drive down fees, including performance fees. I think it's a good move by Hunt, the pension industry and the UK markets.

[@PrinciplesPersonalFinance]

This is one of those where I hope my slightly skeptical view is wrong. (Wouldn't be the first time that's happened, I can promise you!) Time will tell! Thanks for watching and taking the time to comment.

[@musheopeaus4125]

How tell me how does gambling 10% of auto enrolment. On 0:0057% of 85% of 20% , the maths is clear for even the thickest

[@simonnewman4240]

Agreed, seems brain dead to me

[@PrinciplesPersonalFinance]

Thanks for watching Simon. On balance I'm pretty skeptical about this and feel it could end badly. I do hope I'm wrong though. If it can help with UK investment and the benefits are shared between PE firms AND pension savers, I'd be glad to eat my words! As always, very grateful for your support. 👍

[@davidcoard1978]

This information should be more widely disseminated amongst savers.