Pension Investment Growth on the way down!

Eve1950

I am 69 and have a small pension invested in an AMP.  Last month, with growth, it was almost at £40,000 but today it is down to £34,656 with an investment growth of -£1849.  If I leave it will I end up with nothing?  Should I withdraw it all or take a monthly drawdown?

Albermarle

If I leave it will I end up with nothing?

No

Last month saw a peak in the markets after many years of growth . To put it in perspective have a look back two or three years and probably it would have been worth then similar to what it worth now .

There are very similar questions being asked all the time on the forum, so suggest you read some of the answers.

Linton

A drop of about 14% from the high point is not high compared with many other investments so it would seem you are invested sensibly.

It is reasonable to expect your pension to recover when the virus numbers begin to fall.  If you sell now you will guarantee your losses. Your pension will only fall to nothing if the worlds largest companies all go bust and the UK Government ceases to exist.  So possible in theory, but if it happens the value of your pension wont be top of your worry list.

Best in my view to leave it where it is.  Only think about taking a drawdown if you need the money, and even then when prices are low is a bad time to do it.  Better to live off your savings for the time being and consider drawing down once the pension pot has recovered.

dunstonh

I am 69 and have a small pension invested in an AMP.  

Does it sound better with an amp?

What is an amp in this context?

If I leave it will I end up with nothing?  

You would think by now that this question has been asked dozens of times.... oh hold on, it has.    Rather than us repeat the same thing over and over again, take a read of the existing threads on this subject.

Last month, with growth, it was almost at £40,000 but today it is down to £34,656 with an investment growth of -£1849

That sounds quite reasonable and in line with expected loss for a cautious investment.

 Should I withdraw it all or take a monthly drawdown?

Very little has changed.  Your pension should fit your objectives.  If its long term then you ignore the drops. if its short term you should have been de-risking to reduce the drops.   However, for most people, this is not going to see any real changes needed for their pension.

So, do you need to withdraw it?

do you need to take a monthly drawdown?

ffacoffipawb

dunstonh said:

I am 69 and have a small pension invested in an AMP.  

Does it sound better with an amp?

What is an amp in this context?

If I leave it will I end up with nothing?  

You would think by now that this question has been asked dozens of times.... oh hold on, it has.    Rather than us repeat the same thing over and over again, take a read of the existing threads on this subject.

Last month, with growth, it was almost at £40,000 but today it is down to £34,656 with an investment growth of -£1849

That sounds quite reasonable and in line with expected loss for a cautious investment.

 Should I withdraw it all or take a monthly drawdown?

Very little has changed.  Your pension should fit your objectives.  If its long term then you ignore the drops. if its short term you should have been de-risking to reduce the drops.   However, for most people, this is not going to see any real changes needed for their pension.

So, do you need to withdraw it?

do you need to take a monthly drawdown?

AMP probably Australian Mutual Provident. May be part of AXA Sun Life / Phoenix now?

dunstonh

AMP probably Australian Mutual Provident. May be part of AXA Sun Life / Phoenix now?

I did wonder that but AMP were only active in the UK for a very short period and barely sold any products under their own brand.  Plus, the op said they invested "in an AMP".  So, that doesn't sound like AMP as provider but a product type.

I was then thinking it may be a retail marketing name.  i.e.  ABC provider calling their product something non-standard. So, instead of calling it PROVIDER personal pension they are calling it PROVIDER A***** M***** P*****

coyrls

Asset Management Plan?  Never heard of it being used in that way though.

Eve1950

Thank you all for your comments, some which were quite rude and not necessary.  I am quite new to this forum business so excuse me if these questions have been asked previously!!  AMP - Active Money Pension.  Again, thank you all 

blisteringblue

Eve1950 said:

Thank you all for your comments, some which were quite rude and not necessary.  I am quite new to this forum business so excuse me if these questions have been asked previously!!  AMP - Active Money Pension.  Again, thank you all 

Welcome to the forum Eve, you do need to wear a Teflon suit, there is very good information but it comes with caveats, patronising comments at the top of the list.  I've given up most posting as some warrior will always tell you it's wrong and are you stupid?
I've been in DC pensions since 2006 when our final salary closed and my pot went down more than 50% back in 2008.  It took 4 years to recover if you want a reference point.    I'm expecting similar here.  I was hoping to retire in 3 years, so am just monitoring for now, might have to work a few extra years.   No panic.
I've already seen all the doom and gloom articles saying this is the end of pension freedom and all who cashed in pensions are now going to suffer.   No we should have known and accepted the risks like I did. 

saucer

blisteringblue said:

Eve1950 said:

Thank you all for your comments, some which were quite rude and not necessary.  I am quite new to this forum business so excuse me if these questions have been asked previously!!  AMP - Active Money Pension.  Again, thank you all 

Welcome to the forum Eve, you do need to wear a Teflon suit, there is very good information but it comes with caveats, patronising comments at the top of the list.  I've given up most posting as some warrior will always tell you it's wrong and are you stupid?
I've been in DC pensions since 2006 when our final salary closed and my pot went down more than 50% back in 2008.  It took 4 years to recover if you want a reference point.    I'm expecting similar here.  I was hoping to retire in 3 years, so am just monitoring for now, might have to work a few extra years.   No panic.
I've already seen all the doom and gloom articles saying this is the end of pension freedom and all who cashed in pensions are now going to suffer.   No we should have known and accepted the risks like I did. 

I agree that one price to pay for what is often very well informed and constructive advice is the odd patronising, sarcastic or dismissive comment. Some contributors more likely to engage in it than others. Beyond that this forum is peerless when it comes to free independent comment on personal finance

dunstonh

Thank you all for your comments, some which were quite rude and not necessary.  I am quite new to this forum business so excuse me if these questions have been asked previously!!

It works both ways.  With forums, it is considered rude to ask questions that are already being asked by others frequently.   It is considered etiquette to do a quick check first to see if your subject has already been covered.  Otherwise, it results in the regular contributors saying the same thing again and again and again. That gets tedious and frustrating and will either lead to sniping comments or no comments at all.

 AMP - Active Money Pension. 

That is a personal pension for future reference.   Active money pension is just SL's marketing name on their product.