Good or bad time to increase pension contributions ?

Avonvilla

I'm lucky enough to be doing ok currently and would inrease my pension contributions, but, having just had a statement in they actually lost more than i paid in in the last year, so question is should i increase them now or wait till things recover a little ?

Thanks

dunstonh

having just had a statement in they actually lost more than i paid in in the last year

Quite normal.

so question is should i increase them now or wait till things recover a little ?

or to rephrase your question, should you wait until the investments have gone up and then buy them when they are more expensive and ready to go down again?

Investments zig zag. Always have, always will. You are investing for decades. Not 12 months.

gadgetmind

Avonvilla wrote: »

should i increase them now or wait till things recover a little ?

It's exactly the same question as if you were wanting to buy a house. Do you do it when the market is going crazy and people are paying silly money for rabbit hutches or do you wait until it's cooled-off a bit and dropped below long-term trends?

Personally, I buy property and other investments more in dips than in boom times, but with other investments you also get to drip feed and spread the decision.

No-one can say that the markets won't go lower, but increasing contributions now will work out fine even if they do.

Also bear in mind that if your investments are split between equities and fixed interest and balanced/managed between these asset classes, you will have been benefiting from bond/gilt prices rising by selling to some to buy cheaper equities.

Don't fear the dips, use them!

atush

Yes, now is a great time to invest more.

As you will get more shares/units for your monthly contribs when markets ate wonky.

fairleads

Avonvilla wrote: »

having just had a statement in they actually lost more than i paid in in the last year

Does that include the 'free money' the tax relief on contributions?

Gracchus_Babeuf

Avonvilla wrote: »

I'm lucky enough to be doing ok currently and would inrease my pension contributions, but, having just had a statement in they actually lost more than i paid in in the last year, so question is should i increase them now or wait till things recover a little ?

Thanks

This is probably because you are not spreading your investments adequately. Don't put everything in shares, especially the UK FTSE, use bonds as well.

Avonvilla

fairleads wrote: »

Does that include the 'free money' the tax relief on contributions?

Yes thats the value of the plan 1 year compared to next

Avonvilla

Gracchus_Babeuf wrote: »

This is probably because you are not spreading your investments adequately. Don't put everything in shares, especially the UK FTSE, use bonds as well.

It's a Virgin Stakeholder Pension, as far as i am aware they do it all with no input from me.

atush

I would find out what the money is invested in, and if you can make changes. Such as is ot overweight in equitities? Among your equities is it invested all in Uk/Europe or it is also invested in the USA, China etc.

dunstonh

It's a Virgin Stakeholder Pension, as far as i am aware they do it all with no input from me.

pretty much one of the worst stakeholder pensions going. Its a bit like the Apple of financial services. Expensive, limited options available, not the best option but people buy the brand.

It only has 3 funds. Two of which are medium/high risk and limited in focus and the other is low risk designed for those in their last few years until retirement.

Avonvilla

dunstonh wrote: »

pretty much one of the worst stakeholder pensions going. Its a bit like the Apple of financial services. Expensive, limited options available, not the best option but people buy the brand.

It only has 3 funds. Two of which are medium/high risk and limited in focus and the other is low risk designed for those in their last few years until retirement.

So who should i be with ?