I’ve been having a number of inquiries over the past few days about what the Pension SuperHaven is. It’s good that it’s getting talked about at the PLSA Annual conference, but to reduce strain on my tired larynx, here is some information.
We produced a handy little video for those who don’t like slides
The video talks to our launch event in late September – which was great fun.
And some handy slides for those who don’t like videos.
To me the video just posed a lot of questions rather than answer them. So, the gist seems to be that PSH will provide pension income via productive investment of funds. In that case how does this relate to the “10-15% better than an annuity”? The returns should be pretty much decoupled from annuity rates. If the funds are invested then as interest rates fall and annuity rates follow that should not affect PSH pensions so the 10-15% gap should get bigger. In a lower interest environment investment returns would historically be greater. The benefit of something like PSH would allow long term investing and averaging out dips and peaks in investment performance. I’d expect £100K to buy the same pension income of maybe 5-6% to anyone at any time and I shouldn’t be at the mercy of “luck” of when I retire to determine my pension income. Is this one of the benefits/aims of PSH?