Member Info for Dustbin101

A pension of £5,000 a year is a disgrace from those who have invested money into the pension all their working lives.

A massive shake up is required to lift returns for pensioners.

If private equity and hedge funds can do it, so should the pensions industry.

Concerns persist as inflation hits 40-year high

By Sophie Smith 17/8/22
Industry experts have warned that the continued increase in inflation could leave retirees struggling to make their pension last, although many trustees are thought to be reviewing the way benefits are calculated to ensure savers don't miss out on “vital” retirement income.

The Office for National Statistics (ONS) confirmed today (17 August) that annual inflation hit 10.1 per cent in July, up from 9.4 per cent in June, with indicative analysis from the ONS suggesting this could be the highest CPI inflation rate since 1982.

Interactive Investor head of pensions and savings, Becky O’Connor, suggested the latest rise will “heap more despair on people trying to plan a decent retirement” and "dismay" those who recently retired thinking they would be able to manage, while those who chose to retire early during the pandemic may now be regretting that decision.

In light of this, O'Connor suggested that it "looks like ‘back to work’ will be the order of the day for older people who would like to enjoy retirement but can’t because of rises in the cost of living".

“We’ve already seen from ONS labour market figures earlier in the week that more people aged 65 or over are continuing to work or returning to work since the pandemic," she continued.

"Higher inflation could drive this trend and put retirement on pause for hundreds of thousands of would-be retirees or bring more of those who had perhaps prematurely thought they were in a good position to leave work back out of retirement."

O'Connor also warned that retirees may be "caught between a rock and a hard place", as a rise in the amount withdrawn from a pension from £5,000 a year to £5,500 a year to cover a 10 per cent rise in prices could mean a pension running out two years earlier, at age 83 rather than age 85.

16 August 22

Nurses consider ditching pensions to afford bills
The news comes after NHS workers in England were handed yet another below-inflation pay rise during the worst cost of living crisis in a generation.

The article goes on to say the nurse in question pays in £440 a month to her pension and has another 30 years to go.

In the scheme of things with the employer paying in more , (on her behalf) it’s one of the better pension plans.

That said ,my view of investing one lump sum when your young , with no additional payments, into high growth low cap stocks , might be a better and cheaper solution .

Triad Group Plc is the stock I have personally backed to produce above average returns going forward. That should drive my pension pot towards its £3M target.

This week the company will hand out a 4P dividend on top of the 2P paid at the interim stage. A total of 6P for the year producing a yield of 5%

If as I hope profits increase this year at the same rate as last year 67% then their should be room for dividends to increase by around the same amount.

Triad is absolutely loaded with cash, £5.3M , no debt, and it’s only ongoing investment is in it’s staff, hence ,zero capital is required to pumped back into the business each year.

The next results are the interims due in Nov.

“The most important thing to say is that when making any financial decisions, it's important to speak to a financial professional who can review your particular situation and offer personal advice.”

No it’s not , (in my personal opinion!)

Why. ?

All financial advisors follow the same path, as they have been conditioned to do.

That will NOT provide the average worker with a decent pension.

It’s just about impossible. (Poor long term investment returns.)

A new approach is required

Should I opt out of my pension and use the money to pay for the rising cost of living?
Personal finance expert Gemma Godfrey has been answering your questions on the cost of living and money saving dilemmas.

Friday 12 August 2022 12:40, UK
Piggy bank with business stuff, business and finance concept, vintage color tone.

Why you can trust Sky News
Personal finance expert Gemma Godfrey has been answering your questions on the cost of living and money saving dilemmas: Could your pension contribution be put to better use for things like paying your bills?

Mark A: Hello, I'm 37 years young and started a pension late. I had approximately £35,000 in there. With the world as it is, this has now dropped to £24,000. What on earth should I do? With the cost of living the extra money would be handy, rather than going in a pot which is disappearing.

Gemma says: This is such a tough question because for some people, paying into a pension is no longer an option as they're struggling to cover their current basic costs to live.

However, your question implies that you could continue to pay, you're just wondering if you should.

The most important thing to say is that when making any financial decisions, it's important to speak to a financial professional who can review your particular situation and offer personal advice

FT article

A start in the right direction to increase pension values.

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https://www.ft.com/content/fdc1c725-4e0d-4331-a7ed-704f010b1d9f

Two-thirds of the financial wealth of British households is saved for private pensions. Yet the UK pension system is highly inefficient.

On a conservative estimate, if the UK system matched best practice in the Netherlands, Canada or Denmark, for the same pension payments British savers could expect a reliable income in retirement that is 30 per cent higher than they will currently receive.

Triad Group won a large £2M Order since increased to £2.7M from a U.K. Government Department in February 2022, that’s only just been announced on its tender finder page.
All the work is due to be completed in Triads current financial year.

Triad itself appears to seldom announce contracts or their value.

https://www.gov.uk/government/news/brand-new-pension-scheme-launches-in-great-britain

Might be a bigger and longer term plan , but the returns will never get near a 25% P/A growth rate.

Barking up the wrong tree in my opinion.

Just read the first post, and the ten most recent.

I deduce , the vast majority of day traders have been smashed to bits over the last year, many left holding rubbish stocks, with book values 50% plus, lower than their purchase price.

A very hard lesson to those who thought investing was a doddle.

The same applies in the crypto market.

I am not a financial advisor, but might do well, trying to find low cap, fast growing companies , with no debt, cash on the books , in profit , and on low PE Ratios .

Over time , so long as growth continues your be fine.

Good luck.

https://www.express.co.uk/finance/personalfinance/1643952/retirement-state-pension-enough-to-retire-comfortably

More rubbish ,

1/ No mention of what a million pound pension pot might be worth in 40 years time.

2/ The only two winners are your financial advisor and pension provider.

3/ Risk and perceived risk. Bonds are perceived safe, but have cost the pensions industry dear over the last 18 months. !

https://www.standard.co.uk/news/crime/rikki-nicholls-mark-kelly-pension-fraud-equitable-life-london-birmingham-b1012756.html

All the victims were cold called, most would have put the phone down had they not been offered higher returns, than the existing plan they were on.

One thing you see with fraud, time, and time again , is individuals greed, often the only reason , the fraudsters get away with their crimes.

The vast majority of financial advisors are not bent, but in my opinion, the training they receive guarantees that they never deliver returns that are large enough to provide a decent pension , even after 45 years of saving.

Looks like those who paid into the state for a pension may well not receive it at all, the end of the day.!

Can the UK Afford to Pay for Pensions?

The UK government currently has almost £5 trillion worth of pension liabilities which it will have to pay in the future (£1.2 trillion for public service pensions and £3.84 trillion in respect of the state pension). Most of these are unfunded, meaning that they are largely paid out of annual tax revenues and the bill for them is being passed on to future generations because today’s government is not putting money aside to cover them.

In this study, IF asked a group of 50 of Britain’s leading thinkers in economics whether they thought this situation was tenable, or whether future governments will end up trying to reduce their liabilities in some way. Specifically, they were asked to give their views in response to the following questions:

1. According to the ONS, Britain currently has £1.2 trillion worth of public sector pension liabilities, three-quarters of which are unfunded. What do you think is the likelihood that these will be paid in full?

2. In Britain the state pension is currently paid regardless of other income and assets. However, in some countries (including Australia) it is means-tested. Do you think means-testing of the state pension is likely to be introduced before 2040?

The results – 75% of the economic experts said they did not think the public sector pension liabilities would end up being paid in full, and almost 50% said that they thought the state pension would become means-tested before 2040 – suggest that policy-makers have not yet reformed pensions sufficiently to make them sustainable, and a crisis is looming that will have a major impact on future generations.

No idea why the ??????? appeared in my previous post.

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My SIPP pension update .
??A different and refreshing approach to pension saving. Using a SIPP pension.
?? Offering an alternative to the pension industry norm, (of a lifetime of saving), at the expense of quality of life, for the average worker.
? My personal attempt to produce a 100 fold increase in my SIPP pension pot, within 20 years. Starting with £29,746.00 WITH ZERO ADDITIONAL CONTRIBUTIONS , targeting a value of £2.9746M .Making personal investments in potential super growth stocks, at reasonable valuations, before the city-crowd arrives.
Start date Sep 2005. End date Sep 2025.
Premium listed Triad Group Plc Epic code TRD. £1.30P Market Capitalisation £21M. PE Ratio 18 is currently my largest holding who I am depending ,to deliver, both super fast growth and dividends. Like all shares this is in no way guaranteed.

I will try and demonstrate the undervaluation I perceive today compared with stocks within its peer group where the PE Ratio is currently around 30.
Triad in simple terms is a consultancy, established 33 years ago, with 110 staff who integrate bang up to date technologies into computer systems for the private 3rd sector and government.
The company has spent the last 4 years moving away from low margin contractor based contracts towards high margin assignments. It has also partnered with Stratis Group . Triad Recently posted profits of over 1 million pounds. Net cash on the books is over £5M. Triad also yields C: 5%. No borrowings. Triad has a possible two gateways to outstanding profit growth that can’t normally be obtained from your average stock.
The first is the number and quality of government , Crown commercial framework agreements it has been awarded places on. These massively increase the chances of winning large very profitable government contracts. On top of this the U.K. government has a desire to award contracts to SME’S such as Triad, at the expense of the big players traditionally used.
The second possible avenue towards very high growth is through its Stratis blockchain framework partnership, the only U.K. Level 1 protocol Advantages of level 1 include lower transaction costs and simplicity. The U.K. government is promoting blockchain , without it , they fear the city of London will lose jobs and tax revenues. Every single Triad Director has purchased a large volume of shares over the last 18 months. If turnover can increase rapidly from around £17M towards £40M , profits could rise very substantially.
Few, if any institutional shareholders appear on the share register today, no broker coverage , just the type of stock that has previously produced fantastic growth in both profits and share price, helping me on the way to my personal SIPP pension target of £3M.
If I actually achieve that goal, the plan is to increase the help my wife and I have given to young families struggling to bring up families, who can’t afford to buy a house, renting very expensive private accommodation.

https://www.independent.co.uk/business/pension-contributions-pause-retirement-b2121256.html

Here we go again , remember the pensions industry wants to pick up commission payments for 45 plus years from you.

Clearly , like the banks, they don’t like missed payments.

The best way to prevent this is to scar the pants off joe public into paying his or her subs through good times AND BAD.

Worth a read for those who have lost their parents.

https://www.dailyrecord.co.uk/lifestyle/money/new-state-pension-underpayment-guidance-27447882

In my opinion and I am not a financial advisor and can’t give advice one should be targeting a growth rate of around 30% PA.

In an age of inflation that growth rate ideally wants to exceed the inflation rate plus 30% compounded over the period of saving.

The higher the growth rate the shorter the time to build up a very substantial pension pot .

At 30% compound a year 20 years is ample time.

Start in your mid twenties with a lump sum and by 45 you can retire comfortably.

UK government bonds have delivered an average annualised real-return of 1.8% from 1900-2021.

Totally unsuitable for pension growth yet the financial advisors put 40% of your pot in Bonds.!!!

Absolutely crazy.

It’s impossible for the pension saver to save enough for retirement.

Unreal

https://monevator.com/pension-fund-returns/

This is an article showing just how poorly the pension industry delivers, over a lifetime of saving and paying in contributions to produce your pension.