Jeremy hunt yesterday announced what is being called the Mansion Reforms. Within them are plans to change how your pension is invested.. Today we explore these changes and the risks to investors.
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They Just Took a HUGE Gamble With Your Pension
Pensions are a crucial aspect of our financial security in retirement. They provide a steady income stream for individuals who have worked diligently for years and contributed a portion of their salary to these retirement funds. However, recent events have raised concerns about the stability and security of these pensions.
In a shocking turn of events, it has come to light that some organizations and companies have taken a staggering gamble with their employees’ pension funds. These entities, entrusted with protecting employees’ hard-earned savings, have made risky investments that jeopardize the financial security of retirees.
One example of this risky behavior is the excessive investment in volatile financial markets. In pursuit of high returns, pension funds have diverted large sums of money into risky investments such as derivatives, hedge funds, and venture capital. While the potential for significant profits may be alluring, the reality is that these investments are highly unpredictable and volatile, leaving retirees vulnerable to significant losses.
Another concern is the mismanagement of pension funds. Some organizations have been found guilty of diverting pension funds for purposes other than retirement security. This misappropriation of funds poses a serious threat to retirees, as it reduces the amount of money available for pensions and puts the entire retirement system at risk.
Furthermore, the prolonged low-interest-rate environment has added to the challenges faced by pension funds. With interest rates near historic lows, it becomes more difficult for these funds to generate the returns necessary to fulfill their pension obligations. This predicament forces pension managers to seek alternative investment options, which can often be riskier in nature.
The consequences of these actions can be devastating for retirees who rely on their pensions as a primary source of income. Some individuals may find their pensions severely diminished or even entirely depleted due to the risky investments undertaken by their pension fund managers. This can result in financial hardship, increased dependency on government assistance programs, and a diminished quality of life for retirees who were once assured a comfortable and secure retirement.
It is crucial that governments, regulatory bodies, and pension fund trustees take immediate action to address these alarming concerns. Stricter regulations need to be put in place to prevent pension funds from placing excessive bets on risky investments. Regular audits must be conducted to ensure that funds are being managed ethically and in the best interest of retirees.
Moreover, pension fund managers need to adopt a more conservative approach to investments. While the potential for high returns exists in the financial markets, it is essential to prioritize the long-term security and stability of these pension funds. Diversifying investments, reducing exposure to risky assets, and conducting comprehensive risk assessments are all measures that should be implemented to protect retirees’ savings.
As individuals, it is crucial to stay informed about the management of our pensions and question any risky investment decisions made. By actively engaging and participating in the oversight of pension funds, we can contribute to the protection of our own financial futures.
In conclusion, the recent gamble taken with pension funds poses a significant threat to retirees’ financial security. It is imperative for action to be taken at both the regulatory and individual levels to address these concerns. By holding pension fund managers accountable and implementing stricter regulations, we can help ensure that pensions remain a reliable and secure source of income for all retirees.
It's good to have someone explain these pension shenanigans in plain, easy-to-understand language.
I would also advocate to change to any other provder than NEST because when you try to transfer and close your account, they make it as hard and as time consuming as possible… and why would they do that when it's OUR pension money?
Look, Hunt is a pensions expert and a financial whizzkid. I'm sure he knows what he's doing with the future of my money.
How many people can afford tonput £200 a month into a pension pot every month? My son works long hours, he just got a promotion because he works hard and is good at his job his new wage puts him about 70p about minimum wage, rents are going up shopping is going up, where does he find £200.
I don't see any point in pensions, it barely beats inflation if it even it even beats it. We really should reconsider the whole concept of retirement.
I’d never depend on the government to do right by the populous. They continually change the goalposts without our permission. The way things are going the pension age in the uk will be 75 soon and of course your pension dies with you and the Government can fritter it away as they feel fit. Jeremy Hunt and Rishi I wouldn’t trust with my piggy bank. Here today and gone tomorrow and NEVER held to account.
How much Venture capital in startups in American tech never got returned.
I dont see this being good in the long run
It should be no more than 2%
THANK YOU FOR THIS (heads up)
Smell a rat ? Yessss
The government is corrupt
It sounds reckless to me.
Monetisation your pension is a opertunity which the Mafia would like to have .
The Government works for the 150,000 paid up members of the Conservative party NOT YOU.
I smell a rat.
The word "could" is widely used by conmen and politicians.
Yup I thought that when I heard the announcement, tho is not gamble, is their finding ways to transfer our money to their accounts
Don't know about the UK, but signed petitions can be very powerful. The pen is mightier than the sword….
I doubt this matches the risk profile of the majority of people and so probably shouldn't be the default option. But nice way to give the financial institutions that most likely wrote this into law more cash. I am sure nobody got a commission/kickback for it. None of the politicians will be there once it becomes clear what kind of a negative impact this will have on people's pension, so they don't need to worry about accountability. Easy money
Emailed my MP asking him if the returns are so certain perhaps he would consider putting skin in the game by putting the public sector pensions in with the gamble as well….
And who control where this money gets invested. We have seen a lot of shenanigans during covid about where the money goes. Is it going to a lot of 'contacts' who are starting up loosely promising companies. Sounds like it can easily lend itself to a siphoning scheme.
Just in time for the Jaguar battery factory to start
If Mr Hunt and the other politicians aren't willing to invest their own money in these schemes, then why risk other people's money? Because remember, what goes up can also crash back down quite spectacularly.
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
What pension? Worked in childcare'? Libraries,? Think mine amounts to a few thousand a year. While other people were building up theirs. Just a top up of the State pension is still existing.
Is this private equity. If so I understand that's very risky. Much more risky than investing in say a fund or funds that track whole cap weighted broad market indexes
That is 5% every year, compound that every year and you're looking at 97% of your pension invested in high risk investments.
there will be no pensions in a few years, the nation is collapsing in the face of boomer retiremant,, taking more risk is not the answer its desperation.
What a fantastic video. "Damien' knows his facts and knows how to get them across in a clear way. Thanks. I look forward to watching more of your videos in future.
Another way for the government to siphon money through to their mates. They did the same through PPE contracts and theyre doing the same again. I love this country
Thanks for this, it prompted me to get away from my rubbish default pension scheme into a global index. The default has only had 15% gain in 5 years, whilst the global tracker is more like 60%.. that's huge.
Imo having a pension invested in the UK is similarly dodgy to investing in your own company… If the UK fails horribly by my pension age, I don't want to also have a crippled private pension