Why is everyone worried about mortgages but no one worried about pensions?

[Icanstillrecallourlastsummer]

There's numerous threads with people wanting to pay thousands to get out of their mortgages, but noone seems concerned that pension funds are (or were, before urgent intervention from the BoE) on the brink of collapse as result of the mini-budget.

Anyone urgently cashing in on their pensions?

If you have no where to live in 6 months time, then whether you will have money in 20 years time is kinda less of a pressing priority...

If public spending continues the way it is, under the type of government we have state pensions will be non-existant in a couple of decades.

State pensions are inflation-linked, they are safer from the current shenanigans than anything else. If you think that what happened last Friday is the beginning of decades of disaster, you are overlooking that what was done then can be undone relatively quickly, by the current chancellor, or one of his successors.

Anyone looking to retire from 2019 to around now would hopefully not be invested solely in equity! And be invested in more stable assets such a gilts or they may even be hedged against interest and inflation rate changes if they’re super savvy.

I would say the opposite really. People who are invested in real assets, equities and property, will always get a reasonable return, on average over the very long-term. They will not be at major risk from inflation, profits and rents denominated in pounds will go up to compensate for pounds being worth less. It's people invested in debt (including gilts) who might be screwed by unexpected inflation.

OK, I've found what you're talking about on Sky news web site. I'm not very clear on what the issue is, but I guess this is maybe something to do with defined benefit pensions that hold matching assets so they can pay guaranteed pensions. I don't think this affects most people, most people will be contributing to defined-contribution pensions.

I think it doesn't even affect all defined benefit schemes, for example I've just googled and apparently NHS pension is unfunded, which presumably means whatever is owed will just be paid out of tax revenues.

It's mentioned as top in the Daily Express.

It affects their target demographics so it's come home to roost for them

Actually, ignore my previous post. I don't understand the issue at all.

I know It doesn't directly affect my pension. I have hardly any investments in debt, and what I have is a very long way from investments in gilts.

The news articles I'm reading are talking about fund managers with leveraged positions that are having to close them out at a low due to margin calls, following unexpected volatility. I know what that means in a technical sense, but have zero understanding of why pension fund managers would have leveraged positions in gilts.

In receipt of a £10k pension now, with hopefully similar coming from my time in the police. I think mine actually do better if inflation is high.

But this shitshow dwarfs worries that may come to be in 20 years time. They need forcing out, now, before they do any more damage.

The largest one of my 8 pension funds has moved between £50k and £150k in the years 2020-2022 - not sure what it is ATM - I'm about to check - I've deferred cashing it in even though I could have done so in 2020 - I will no doubt be deferring it again this year - I don't need to cash it in for next 5-6 years, perhaps longer I guess - I can manage without it for now - this is the world of investment - you have to keep any eye on them, know the lie of the land, determine/guess/judge when the market is somewhere near it's best and cash in at the right time; it's a ball ache but it's got to be done.

I am dependent on the state pension. Yes, I am worried about it. I'm always worried about it.

Because I don’t have one to worry about?

This. I have opted out of my pension because I cannot afford the contributions.
God knows what the future holds.

I have a workplace AVC lifestyle pension that is heavily invested in gilts (I'm 62). It's been absolutely tanking for a while now, and it looks like things are about to get far, far, worse.

My pension is very small (I started late in life) and it's already worth thousands less than I have paid in. Should I stop paying into the AVC, or maybe try to change it to a different fund that doesn't rely so much on gilts?

Dh's lost Money last year. Not happy.

Most people on here won't be using their pensions for decades, funds have time to recover.

Mortgage payments come at the end of every month. There is no time to protect against the effects.

People would be foolish to cash in their pensions in panic, pensions are a long term investment or range of investments and need time to rally again

Now is the worst time to cash it in but give it a few years. For those looking to retire in the next few years I would hold off if you can

Not being able to pay your mortgage leaves you homeless. That’s supersedes anything else for most people… particularly if you’re in your 30s or 40s with kids.
pensions are something that affects a lot of people much later.

Interesting!

I am not hugely knowledgeable, but am talking with my pension advisor on Monday.

Top of my mind is a nuclear attack.

Cos we’re paying a mortgage not claiming a pension

www.hl.co.uk/retirement/annuities/best-buy-rates

Yes they've gone up but still terrible value for money in my mind

So for 300k for example, a pension of 18k a year? Max.

I dont know how that compares actually to a pension payout

I thought all the pension funds were invested in BP etc so are laughing all the way to the bank. Doing very well thank you.

Because I'm at least 38 years away from
Retirement. If I ever get to retire. So tbh it's not on my mind.

My parents tell me Labour sold the gold and changed some tax rules which destroyed pensions. My pension set me a letter earlier in the year predicting I could get perhaps £3k per year in 30 years time. What are the Bank of England and the government and the banks doing with all this money I’m paying in?!

For anyone who isnt literally on their uppers, please dont stop paying in a pension, I started one way too late and am really regretting it.

And you wont believe how quickly time passes, sorry to say.

It’s pension schemes like LGPS, which are Direct benefit schemes, that were mainly affected, along with employer Direct contribution schemes on a ‘lifestyle path’ (only for those at or near retirement because they are bond heavy) .
If you have high equity global funds in your pension, it’s less of a worry as they have dropped abit but nowhere near UK bond heavy funds.
My so called ‘safe’ 70% uk fixed income (gilts) ISA is down 21% this year , yet our high risk 80-100% global equity funds are only down 4% and that loss is more than covered by high returns over the last few years.

To sell funds now is to lock in losses, just keep paying and getting your funds at lower prices, things will come around even if it takes a decade.