Pension fund falling daily

agrima

I have a private pension the fund of which has lost some 22% in the last few days due to the present situation and is continuing to fall daily. I am due to take this pension next year. Would it be better to take it now and not rsik any further losses or defer it until the financial market improves hopefully in 2 or 3 years time???

DavidLaGuardia

Although thoughts of closing the door after the horse has bolted come to mind, for the sake of others reqading this, it is a good idea to move gradually into cash int the years leading up to your retirment date to avoid the risk of this happening

You appear to be lucky in the sense (you hint) you are able to wait an an addtional year or two for recovery. This might be the best course of action from the point of view the prices are down and there is a hint that going into next year there will be a recovery. The risk of course is thar annuty rates fall due to either or a cominbination of falling gilt yields or increased longevity puuling annnuity rates down.

EdInvestor

You could of course just divert some of the money from higher risk funds to lower risak funds (such as gilts or cash). That should reduce the losses.

Which pension company and which funds is it invested in now?

dunstonh

have a private pension the fund of which has lost some 22% in the last few days due to the present situation and is continuing to fall daily.

Where the heck are you invested that has lost 22% in the last few days?

MikeJones_2

EdInvestor wrote: »

You could of course just divert some of the money from higher risk funds to lower risk funds (such as gilts or cash). That should reduce the losses.

Hi Ed,

For the avoidance of doubt I'm sure you meant to say 'It won't reduce the existing losses, but it will reduce the prospect of further losses.'

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

agrima

Hi David, Thanks for your thoughts. Yes it is a question of closing the door after the horse has bolted, but unfortunately I have been given wrong advice by my FA!!! Last November the fund was great and I was told to do nothing. It was not until I checked out the present state of play on the web site that I found out about the 22% downtrend!! Now of course I have to act but do not have much faith on advice I am given!! that's why I am thinking of deffering for a year or so until market pick up (Hopefully)

MikeJones_2

Hi agrima,

If you were considering a complaint then these are some of the issues that I would expect to have to be considered from the very limited information you have given in your post. Only on reflection of the answers to these questions (and others) can you make the assertion that you were wrongly advised.

agrima wrote: »

...but unfortunately I have been given wrong advice by my FA!!!

It may not be palatable for you to consider this, but did your financial adviser discuss with you the risks associated with your investment choice/strategy and your term to 'retirement'/drawing your pension benefit and did you agree the way forward? Was your choice recorded and do you have a copy?

agrima wrote: »

...Last November the fund was great and I was told to do nothing...

Was this explained to you in writing and did you consent to the (fund/investment choice) advice in November?

agrima wrote: »

...It was not until I checked out the present state of play on the web site that I found out about the 22% downtrend!!...(and)...I am due to take this pension next year...

So close to taking your pension, but you appear not to have chosen to review it in last 10/11 months even though the media has been full of doom and gloom headlines. (analogy: It's unlikely that you will rely upon the same car for the entire period of your retirement, but it's a fair bet that you've maintained your existing car in the last 12 months).

agrima wrote: »

...Now of course I have to act but do not have much faith on advice I am given!!...

Print out this thread and make an appointment with the adviser that gave you the original advice. If you feel you have a case for complaint, put it in writing. You could always approach The Pensions Advisory Service who would be pleased to help you - and its FREE.

DavidLaGuardia's (presumably personal but well intentioned quote): 'You appear to be lucky in the sense (you hint) you are able to wait an an addtional year or two for recovery. This might be the best course of action from the point of view the prices are down and there is a hint that going into next year there will be a recovery.'

That's one person's opinion (David's own, presumably) - but the Pensions Ombudsman would look at how you would have mitigated your 'loss' from the time of realisation.

I hope this helps.

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

dunstonh

but unfortunately I have been given wrong advice by my FA!!!

Was it a tied agent or IFA? A lot of tied agents are unable to recommend fund switches. So a complaint against an adviser who isnt able to recommend a fund switch would be rejected.

If it was an IFA, then you would expect a discussion on risk, timescales etc and then the switch to be actioned. If it was just a quick phone call asking for opinion about events then that wouldnt count.