Pension losing money

atush

Put more in.

Read about pound cost averaging. It is actually good if prices (and what you already put in) fall a bit in the early days. As each months payments buy more shares/units than the previous month. When prices go back to rising, you'll be quids in

Afraid_of_Kittens

I have watched my pension pot drop by over £1000 in a day but it has increased by 26% this year. I have stopped looking at it. I will take a peak in 17 years time!

Thrugelmir

confusedfreelancer wrote: »

I wondered whether I'd made a mistake choosing medium-high risk level, which nutmeg recommended, but I guess it's ok since I have so long to go until retirement?

Your choice of investments will reflect in a more volatile portfolio (up and down daily movements).

Monitor gains and losses in % terms not £'s. Over time you'll note that markets are rarely smooth even if the main market indices are flat. Underneath the suface there's a myriad of price movements. As the market digests the days news.

Anonymous101

From an investment point of view the best thing that could happen to me (and you) at the moment is a substantial fall in equity prices. I've worked hard in the last few years to increase my pay and keep a lid on my expenses so my savings/investment rate is very high.


As others have said falls in equity prices are normal and to be expected. As an investor, which you are if you are purchasing funds in your pension, these can represent opportunities and shouldn't be feared.


The only two caveats to the above would be for someone approaching or just entering into drawdown where sequence of return risk can be a problem. Secondly, and most relevant for you and I, is how a stock market crash would effect ability to earn. Its no good equity pricing being low and therefore attractive if you lose your job and can't invest. I'd be much more worried about that should there be a stock market crash than the value of my portfolio.

JoeCrystal

confusedfreelancer wrote: »

I started a nutmeg pension about two months ago because people kept telling me I should have a pension (I'm 31 and have always been self employed). I went with nutmeg because I wanted something as easy as possible.

It's lost £100 since I started it. Is that normal? Did I do something wrong or should I keep putting money in and assume it will eventually go up?

That bring back memories. I was showing £640 or 14% losses by the end of my first year in my pension scheme (Back in 2010). So, it is perfectly normal and keeps putting more money into it! I didn't pay any attention to the markets at the time, but I am glad I did bother to set up the scheme. Your future self will thank you for it.