Originally Posted by
Lima Juliet
But isn’t that the point
VinRouge - there is no risk with AFPS (apart from some sort of armageddon) whereas even with the most stable private plans there is always risk of collapse. Ask Mrs LJ, her private pension pot, in a low risk private pension scheme, was roughly £0.5M prior to 2007, it is now worth less than £0.2M. Whereas, my AFPS was totally unaffected by the various market crashes (save for the auto enrolment onto AFPS15, although I am better off on that as I get the ability to earn pension past 55 now that I didn’t on AFPS75).
AFPS 15 cost me and many in my generation over 1/3 of the original promise. And whilst we were unable to touch the pension and had to serve the remainder of the time on a scheme with a far lower accrual, it’s snake oil sales tactics to suggest we didn’t lose anything. That change cost my pension in the region of 100k, not accounting for CPI increases.
People are now being taxed on contributions to the scheme despite not having an actual pot. It’s the flip side to the same coin.
The key key point is diversification across assets and not putting eggs in one basket, with differing levels of risk in the pot.