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Originally Posted by Phil th Barrow
Arnt alot of private or none private pensions linked to oil. I thought th bigger th slush fund th more stable they are.
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You are absolutely right.
There are broadly three types of pensions
1. Private pension - where the individial builds up a personal pension pot with a financial firm who invest the money in various stocks and expect to achieve a return so that the projected pension can hopefully increase with time in line with inflation.
2. Company provided pensions - which are another form of a private pension but managed by the company's pension scheme and overseen by trustees.
3. State pension.
The first two invest the pension funds across a range of sectors including property, energy, aerospace etc. and rely on achieving a higher-than-inflation return in order to keep paying individual pensions linked to an index such as RPI or CPI.
All those who object to shareholders receiving company profits are in fact saying that they do not wish their pension if in one or both of the first two categories to increase with time and inflation. They should really put this in writing to their pension provider who I am sure will be grateful for their principles led position!
Similarly, there is a simple solution for those who consider the pension fund investment manangers to be some sort of undesirable gamblers - do not partake in a company or private pension and enjoy your principles on circa £158 a week state pension plus personal savings.