Checked ya pension pot lately?



like all trades there will be good and bad. Couple of IFAs post on here , including yourself and Taff etc who I would certainly trust and go for advice . I’m just saying to the original poster there’s often lot more to it than just the initial value , that royal London link is a canny starting point

Completely agree.

It’s really important to shop around as well so you get value. If you don’t like the price that’s being quoted tell and adviser to do one. One thing some are guilty of is overcharging. The “my shit smells sweeter” type people but you get them in all walks of life. A bit like getting two vastly different prices for the same bathroom suite off two different salesman and one telling you that you “get what you pay for” cos your buying off him when in reality your getting the same thing.
 
Pension funds will be hit and hit hard but hopefully they will recover at some point just nobody knows when that will be and if they have already hit rock bottom or more and bigger drops to follow . It’s a financial disaster for the economy
 
Pension funds will be hit and hit hard but hopefully they will recover at some point just nobody knows when that will be and if they have already hit rock bottom or more and bigger drops to follow . It’s a financial disaster for the economy

All we can look at is history which has told us that every time markets have fallen they have recovered. If markets have fallen very quickly then the recovery tends to happen very quickly. If market falls are prolonged then the recovery is prolonged.

Peoples investments now are priced at the selling price. I.E. thats what you get if you cash your chips in. Everyone has the right to say no to that price (coz it’s shite) and wait for them to return to a more suitable selling price. You only lose if you sell.
 
All we can look at is history which has told us that every time markets have fallen they have recovered. If markets have fallen very quickly then the recovery tends to happen very quickly. If market falls are prolonged then the recovery is prolonged.

Peoples investments now are priced at the selling price. I.E. thats what you get if you cash your chips in. Everyone has the right to say no to that price (coz it’s shite) and wait for them to return to a more suitable selling price. You only lose if you sell.

I guess the slight unknown this time round is that previous falls have been more economic driven (Black Monday, dot com, financial crash, etc) whereas this one is social - may take a lot longer to recover and may get a lot worse before any upturn.
 
I guess the slight unknown this time round is that previous falls have been more economic driven (Black Monday, dot com, financial crash, etc) whereas this one is social - may take a lot longer to recover and may get a lot worse before any upturn.
True. But arguably others required significant fixes to infrastructure e.g. structure of finance sector and huge bailouts in 2008. This shouldn't be required although admittedly this is uncharted territory.
 
Yes. Not at the minute. But once the current crisis passes, and it will, the markets will bounce back even if it takes a year or two. In the meantime if you keep paying in your 100 quid you are buying shares at low prices and you will reap the gain on those when the market recovers.
Exactly. If you're in the last few years of your pension your money will usually be moved to somewhere unaffected by the markets for this reason.
 
I’m in drawdown and my Pot has lost £95k since it’s peak at the end of January.
It had gained £70k in 2.5yrs mind, £30k of that since the Election in December!
Not too worried as it’s a long term 20/25yr investment and history shows it should recover in time. Only immediate concern is when will it “bottom”.
 
Mine's just a shade over 15% down from my last check. I expected worse to be honest.

It's not a huge pot compared to others anyway.
 
Yes but all the £100 I’ve been putting in each month is not worth £70
How’ve you worked that out? Any £100 put in a month or two ago might be worth £70 now, but you’ll have had compound growth on anything you’ve been putting for the longer term. All depends when you started your pension but I’d guess your growth has taken a hit, not your capital. All that is before you’ve taken into account you’ve either had the benefit if 20% or 40% tax relief. 45% if you’re lucky ;)
 
I guess the slight unknown this time round is that previous falls have been more economic driven (Black Monday, dot com, financial crash, etc) whereas this one is social - may take a lot longer to recover and may get a lot worse before any upturn.

Yeah deffo a step into the unknown but then again so was Brexit and UK markets reacted the opposite way to what everyone thought due to the collapse of the pound. This meant it was cheaper to trade with Britain as the weaker pound reduced the cost of exports.

One thing the recent collapse has highlighted for me is the importance of diversification within investments. Those with those god awful FTSE trackers will be feeling the pain right now. Diversifying reduces risk at time’s like these and anyone with a FTSE tracker should really be looking to diversify across markets and asset classes.
 
How’ve you worked that out? Any £100 put in a month or two ago might be worth £70 now, but you’ll have had compound growth on anything you’ve been putting for the longer term. All depends when you started your pension but I’d guess your growth has taken a hit, not your capital. All that is before you’ve taken into account you’ve either had the benefit if 20% or 40% tax relief. 45% if you’re lucky ;)
I’m well aware of how a pensions mature. I’m referring to the immediate drop in value and how that would reduce the value of the current investment into shares if the previous shares are sold at a loss to fund them.

Tax relief is there of course but is mitigated slightly by being taxed when the pension is paid.
 
I’m well aware of how a pensions mature. I’m referring to the immediate drop in value and how that would reduce the value of the current investment into shares if the previous shares are sold at a loss to fund them.

Tax relief is there of course but is mitigated slightly by being taxed when the pension is paid.
They aren't, though. That's not how it works. There's no selling to buy other shares.
 
Just checked my main pension - about 25% reduction on the 13th March compared to the start of 2020.
About what I expected.
 
Mine is possibly fortunate timing. I’m holding off paying more in (from my company) just for now. As part of my divorce a mutually agreed percentage is being transferred from my pension to my ex-wife’s pension to even them out. Probably a good time to be transferring a percentage amount. Hopefully I can keep adding a bit more straight afterwards in a few weeks’ time if I can find a bit more work.
 

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