Young Anglican vicars are facing the prospect of a bleaker retirement after the Church of England’s pension scheme succumbed to the “cult of equity” and sank 100 per cent of its investments into stocks towards the end of the 1990s bull market.
The Church of England’s current pension scheme for the clergy is now considering sharply curtailing the rate at which they accrue benefits. For a young clergyman, aged 30, these benefits could turn out to be less than half of what recent retirees are receiving.
Shaun Farrell, chief executive of the Church of England Pensions Board, said the collapse of share prices had driven a “huge great hole” in the finances of the scheme, which was created in January 1998. But he said the scheme had invested in equities because its pay-out date was a long way off and “equities will give you the highest returns over the long run”.
as a 35 yr old priest that is very depressing and further evidence of an institution horribly out of synch with its professed faith….
“Pensions experts said the 100 per cent concentration in equities was unorthodox”
John Ralfe, an independent pensions consultant ….. said the investment strategy was unusual – and highly risky……do not expect money to be gambled on the stock market
Nice point pageantmaster! Highlighting … a broader message.
This is what I do for a living, and I can’t think of a single pension account I work with that’s more than about 60-65% equity. 401(k)s are another matter, but the folks who run the CoE’s pension should know better.