Why oh why do these pension statements get more annoying to read each year.
Yet again the pension forecast is less than last year as they have now dropped the growth forecast <! again !>. Each year the annual pension forecast falls even though the pension fund value increases. This is one of my old AVC schemes which just becomes a joke. They have even put an example illustration of a negative growth rate.
An ex-work colleague was telling me to get a valuation on my old work DB scheme (final salary one). She is looking at taking the money out of the scheme because the number is so huge….. Well, I’m happy to keep mine as a DB scheme as at least I know at the moment what my pension will be when I reach pension age. She has a hubby who probably has a DB scheme too so when shared she may find that cashing in hers may be worth it as part of a couples financial plan. As a singleton, I don’t have that option so have to rely on my own schemes to fund my retirement, if I actually reach it.
My current plan is to combine all my separate DC pots nearer retirement age and look at a draw down option to supplement the DB scheme + state pension. At the moment, I have consolidated them down to a manageable number of accounts but still retain some risk mitigation. i.e. not have all my eggs in one basket.
I will continue to plough money in there and take the benefit of tax relief and take the max I can from my employer for their scheme which is 5%.