Value of pension is freaking me out

Thrugelmir

swindiff said:

Baille Gifford American is down around 30% this month.  It makes up a small amount of my wife's SIPP.  No point panicking just an opportunity to buy more at a lower price and hope it recovers to previous levels in the longer term.

Another of the BG stable that benefited from the expodential rise in the Tesla share price. Likewise has taken a hit from the fall in value of Moderna. Always worth looking under the bonnet when investing in actively managed funds. That's why so many Woodford fans made the wrong call. No one has the midas touch indefinately. 

Twentytwothousand

Checked again this morning - much worse now.   Lost 15% from Protected Rights pot in one month and 10% from non protected.    Given that I am planning to retire within 3/4 years this kind of fall is very unwelcome.    Lower than it was last June.   I don't actively manage my pension pots - they're most managed by Aviva.  Should I be more proactive? I work 60 hour weeks and have very limited investment knowledge but they know I'm gearing up for retirement and this is looking riskier than I'm comfortable with.  Useful reminder that it remains invested for the long term even if I start drawing down in the shorter term but if the total pot will be less, I'll need to retire later. 

Thrugelmir

A reminder also that's it's what you pay in that matters. Market peaks and troughs will smooth out. Companies overall performance financial performance will reflect the broader economic conditions that prevail. 

eskbanker

Twentytwothousand said:

Checked again this morning - much worse now.   Lost 15% from Protected Rights pot in one month and 10% from non protected.    Given that I am planning to retire within 3/4 years this kind of fall is very unwelcome.    Lower than it was last June.   I don't actively manage my pension pots - they're most managed by Aviva.  Should I be more proactive? I work 60 hour weeks and have very limited investment knowledge but they know I'm gearing up for retirement and this is looking riskier than I'm comfortable with.  Useful reminder that it remains invested for the long term even if I start drawing down in the shorter term but if the total pot will be less, I'll need to retire later. 

It was suggested to you last week that you share what you're invested in, which would allow posters to offer constructive views on how appropriate it is:

https://forums.moneysavingexpert.com/discussion/comment/78913179/#Comment_78913179

Even if "they know I'm gearing up for retirement", that doesn't necessarily make them responsible for adjusting your holdings unless you're on a lifestyling plan that facilitates this, i.e. you can be in Aviva-managed funds but that may not mean that they're being managed specifically to derisk towards retirement....

borland01

Twentytwothousand said:

Checked again this morning - much worse now.   Lost 15% from Protected Rights pot in one month and 10% from non protected.    Given that I am planning to retire within 3/4 years this kind of fall is very unwelcome.    Lower than it was last June.   I don't actively manage my pension pots - they're most managed by Aviva.  Should I be more proactive? I work 60 hour weeks and have very limited investment knowledge but they know I'm gearing up for retirement and this is looking riskier than I'm comfortable with.  Useful reminder that it remains invested for the long term even if I start drawing down in the shorter term but if the total pot will be less, I'll need to retire later. 

Worth checking that your funds have been moved into less volatile investments in run up to retirement. My funds are also managed by Aviva/L&G/SL and will start to be moved into lower risk funds when I'm 10 years out from my expected retirement date. They may not do this automatically though, so worth checking.

I checked mine today and its down another 4% in a week. I know I need to leave it alone but it's like a scab I can't stop picking! 

Workerdrone

I checked mine today and its down another 4% in a week. I know I need to leave it alone but it's like a scab I can't stop picking! 

Well at lest this current pullback (Call it what you like) has cured my of my daily obsession for checking the pots. Whilst its been nice to start the day with good news up to now, starting the day with a kick in the teeth isn't desirable, hence I no longer do it.

Aside from that I have no particular desire to change what I am invested in. Theres been no fundamental change in the companies which form my fund, nor has there I believe been a worldwide move to use becoming more luddite over the next 15 years, so I will just hold tight, let the market do its stuff and see it as an opportunity to buy more units at a discount.

[Deleted User]

Twentytwothousand said:

Checked again this morning - much worse now.   Lost 15% from Protected Rights pot in one month and 10% from non protected.    Given that I am planning to retire within 3/4 years this kind of fall is very unwelcome.    Lower than it was last June.   I don't actively manage my pension pots - they're most managed by Aviva.  Should I be more proactive? I work 60 hour weeks and have very limited investment knowledge but they know I'm gearing up for retirement and this is looking riskier than I'm comfortable with.  Useful reminder that it remains invested for the long term even if I start drawing down in the shorter term but if the total pot will be less, I'll need to retire later. 

Periods of high volatility are generally unsuitable for making major changes to your investments.  Its best to have a nap when the urge to make changes becomes overwhelming. Usually it helps.  

Given that you have 3 years work and potentially decades of retirement, I would learn about investments and find out what’s happening with your life earnings. Once you educate yourself and volatility dies down then consider making changes. 

dunstonh

Checked again this morning - much worse now.   Lost 15% from Protected Rights pot in one month and 10% from non protected.    Given that I am planning to retire within 3/4 years this kind of fall is very unwelcome.   

1) why is the fact you are retiring in 3/4 years an issue? - if you are buying an annuity, then it certainly is but if you are going into drawdown, its not.
2) BG American, like most BG funds are amongst the highest risk in their sector.  It has a history of periodically suffering larger losses when its investing style goes out of fashion.     So, it is doing nothing it hasn't done before.  It also still up a large amount compared to a few years back.

 don't actively manage my pension pots - they're most managed by Aviva.  Should I be more proactive?

Aviva are not managing your pension.    Investment selection is down to your advisers, if you have one or you if you do not.  Aviva are just an administrator that take instruction from you or your adviser.

[Deleted User]

1) why is the fact you are retiring in 3/4 years an issue? - if you are buying an annuity, then it certainly is but if you are going into drawdown, its not.

Because 5 years before and after retirement is the period of vulnerability to sequence of return risk.  Withdrawing from a pot temporarily reduced by the market (aka “drawdown”) can be devastating.  Basics. 

Twentytwothousand

eskbanker said:

It was suggested to you last week that you share what you're invested in, which would allow posters to offer constructive views on how appropriate it is:

That isn't showing on the site at the moment.  It's "phone for more info" and I don't have a spare hour to be on hold.   But will post when the website is updated