Duke of Marmalade
Registered User
- Messages
- 4,596
I use this.
I use this.Great information.
Is it possible to view average annuity rates or are they guarded ?
Many thanks.I use this.
OP probably took the generic "lifestyling" advice to shift toward bonds and cash as you got closer to retirement. This is designed to be "low risk" but was in my view no longer appropriate in 2019-2021 when euro area interest rates were so low they were negative in some cases, meaning that bond values were at all-time highs. Interest rates have risen a lot since (and bond prices have fallen) so that's no longer the case but for you unfortunately for the OP the losses are locked in.I did see a post somewhere (unfortunately I don't remember where) suggesting that DB transfer values were unlikely to get any higher, might be about to drop and that it was the best time to transfer if that was in your plans
I don't think that is what is happening here. See my post #16. The statutory formula for the TV discounts the pension entitlements and adjusts with the yield on French govies. Ok, that is consistent with the lifestyling approach you describe but the formula is quite independent of what approach the fund actually applies.OP probably took the generic "lifestyling" advice to shift toward bonds and cash as you got closer to retirement. This is designed to be "low risk" but was in my view no longer appropriate in 2019-2021 when euro area interest rates were so low they were negative in some cases, meaning that bond values were at all-time highs. Interest rates have risen a lot since (and bond prices have fallen) so that's no longer the case but for you unfortunately for the OP the losses are locked in.
Yes, and bonds have a minimum floor (and ceiling) at maturity which equites do not.It's a topic for another thread, but people should recall that bonds have a theoretical ceiling on any increase in their value but equities do not.