Pension pot shrinking

handful

I transferred part of my pension pot (the money purchase element) into a new fund approx 12 months ago and have discovered it has shrunk in value by just under 30% in that time.:eek:

Could someone advise if this is this par for the course at the moment or should I be concerned. I'm not a 'gold chaser' and understand that my pension is a long term investment but some kind of reassurance other than from my IFA would be great! I am not contributing to this fund at present as any spare funds are going into my current Employers Scheme.

dunstonh

have discovered it has shrunk in value by just under 30% in that time.:eek:

Seems quite reasonable.

The FTSE dropped 44% from its peak although it has gained some back since the worst point (october). This is what markets do. Up and down like a yo you. This is is the worst drop for a very long time (although the dot.com period, if you include the two years as one period, saw the FTSE drop 43%).

You take the good years and the bad years and average them out. Ideally, your contributions in the bad years (after drops) will be the ones that make more money in the long run. So, for those making regular contributions and have a long time to go until retirement, times like these can be very good even if they look quite rubbish on the money already invested.