Pension and inflation

Green Mile

So, a little spooked with inflation and looming recessions, I've moved my pension to a cash fund.

Am I correct that my pension-pot is now linked to inflation? e.g. if inflation is 8% over 12 months, my funds would grow by 8%, keeping up with indexation?

Or am I wrong and having my pension in a cash fund would be the same as having cash under the mattress, slowly being depleted by inflation?

JazzyJ

https://www.boards.ie/discussion/2058256638/pension-and-inflation

There's not a hope its indexed to inflation. It'll be effectively the same as cash in a bank - there might be some interest paid on it, but based on current rates it'll be minimal.

IK09

https://www.boards.ie/discussion/2058256638/pension-and-inflation

Make sure you look into the make up of the cash fund. It could be made up of multiple currencies rather than just the currency in which you gave to be invested in the cash fund.

Jim2007

https://www.boards.ie/discussion/2058256638/pension-and-inflation

You are not trying to keep up with inflation, you are trying to maintain the real value of your fund and cash is not going to do the for you.

893bet

What age are you?

https://www.boards.ie/discussion/comment/119402802#Comment_119402802

" indexed to inflation "?????? ....... like a magic betting shop where your horse never loses...... Jeez, I sure wish I could get into that fund🤣

highgiant1985

https://www.boards.ie/discussion/2058256638/pension-and-inflation

unless you're planning to retire within the next 5 years this was not a good move.

lawred2

https://www.boards.ie/discussion/2058256638/pension-and-inflation

How on earth did you think that was how it worked?