Could pensions be taking a heavier toll from Coronavirus than property investment?

Hi,
Firstly, what is "the average" pension fund?

Anybody saving regularly into a pension - or say an Investment ISA - is buying more with their contributions, whilst markets are down.

Relatively few new annuities are sold these days, existing annuities will continue to pay out at their set, fixed rate.

Thanks.

Just a thought - with large amounts of care home residents dying due to Corona, a lot of pensions payments will stop. Surely there will be thousands of pounds in surplus within DWP and other pension companies, that they would not otherwise have accrued just yet. Will they invest this surplus in their coffers for the shareholders?

These seem huge drops. Not mine, mine has fallen by just over 5%. But it's offshore in Gibraltar, and I am able to invest in funds and areas which aren't under scrutiny or mandated by our Government.
Ironically only yesterday I had an Autocall Structured Note mature, repaying in full plus 94% interest for the five year term. But these investment vehicles aren't available to UK based PPF.

Shares go down as well as up and ways have. Already the FTSE has recovered from when these figures were arrived at.
When you pay regular contributions into either a pension or ISA the lower the market the better it is although, you do of course, need it to be high when you decide to draw it.
I suspect many who have come out of final salary schemes over the last few years will be starting to feel uncomfortable.
Today very few annuities are sold in comparison to even five years ago.
It has always been the case you should spread your investments over a wide range of assets hence why I have two rental properties.
What has happened over the last ten years is nothing short of theft. Government has seen us as a cash cow but before long small scale landlords who generally are the good guys when it comes to looking after tenants will have left the market.
Hey ho happy times!

Reply to the comment left by Matarredonda at 29/04/2020 - 22:21
Hi, I have my own thoughts on this, and that is the Government are desperately trying to crush the PRS as we, the landlords are using the property market as our alternative "Pension Fund". Which they can't plunder, or not so easy!!
Then when this has been almost removed there's not much other alternatives than the UK based private pension investments, which they can and do benefit from. Very probably that's why a few years ago they shut the door on the likes of myself, from investing offshore in QROPs.

Reply to the comment left by Danny 10 at 30/04/2020 - 05:38
Yes you are likely correct.
The private landlord bailed successive Governments out after the Thatcher sell off but now they want control of us and how much we make out of it.

Reply to the comment left by Danny 10 at 30/04/2020 - 05:38
They are trying to crush small landlords for sure . Property was the only way a working class person could accumulate wealth within a short time . Now, we are financially penalised in every way - in favour of rogue tenants who are permitted to abuse property and steal rents, with evictions pushed further and further back no matter what, to keep homeless figures lower. We landlords must also increasingly buy licences to ensure it is we who pay fines for anti social tenants.

Even the proposed "mediation" service is stated by their key person as being a means to "force" Landlords to speak more to tenants. For that, which is just a telephone sedvice, we landlords must pay £540. This will just serve to delay court action, increase arrears and ultimately cost us £540 extra as well making us a laughing stock to rogue tenants as we grovel for much needed rents to enable us to ensure that mega safety and upgrading property standards are met by us.

Mega landlords will not be deterred by all this, but clearly the governments are out to stop the increasing small time landlords in their tracks and gain the confidence of tenants by the million.
What will happen when small landlords no longer exist? The balance will shift away from tenants in favour of the "Lords" who will be ruling them.

Reply to the comment left by Ingrid Bacsa at 30/04/2020 - 09:37
Very well thought out and presented Ingrid, but nevertheless frighteningly true. That's my feelings also. I have just 3 properties now, sold one each year since 2017, doubt that will be the case this year.
I had shifted all the proceeds into very well invested and cautiously managed funds, paying me on average 7-8% pa quarterly. My Fin Ad are very very good, most of the funds that remain invested and weren't transferred into gold in February, have only dropped between 5-7% during this fiasco. But growth in the next 2 years will be very very poor if any at all. With over £100k in gold ETF many held since 2013 I m hoping on good returns there.
I m nearly 60 so not too concerned.