My pension pot is taking a big hit

garyelder

Should I be concerned about my pension pot dropping from 540k to 520k in the last 2 weeks
I don’t plan to take any money for the next 3/4 years
my financial advisor will probably say don’t worry 
he was expecting it to grow 50k by June this year 

Thrugelmir

garyelder said:

Should I be concerned about my pension pot dropping from 540k to 520k in the last 2 weeks
I don’t plan to take any money for the next 3/4 years
my financial advisor will probably say don’t worry 
he was expecting it to grow 50k by June this year 

I'd change financial advisor then. As not particularly sound advice to be giving out. Whether you should have concerns or not will depend on your asset allocation. Corrections scar the entire market though once the dust settles some stocks will get hit far harder than others. Resulting in different outcomes for different collective investments. 

Prism

He was expecting it to grow 10% in 6 months? Seems very hopeful. Nobody should have any expectations over such a short period. It could be up 10% or it could be down another 30% by June. Who knows.

bostonerimus

I've seen my pension and investments fall by quite a bit recently; it's not for the first time and it won't be the last. Your pot has fallen by about 4% which is nothing in the big scheme. It might be a worry if you are retiring soon, but your investments should be suitable for your current circumstances and plans and if you are retiring such drops must be baked into your income plan.

I say that any FA expecting a 10% gain in the short term is a fool. 

33scott

Most people's pots are taking a big hit, hold on tight for a rollercoaster ride.

[Deleted User]

garyelder said:

Should I be concerned about my pension pot dropping from 540k to 520k in the last 2 weeks
I don’t plan to take any money for the next 3/4 years
my financial advisor will probably say don’t worry 
he was expecting it to grow 50k by June this year 

Fire him (my opinion). There is absolutely no way one can make a reasonable prediction like this. He is telling you BS, if he told you that. 

You should not be concerned about volatility of a fluctuating asset which you bought. If you are, wait until after volatility bout is over and then look carefully at your asset allocation and if changes need to be made. 

JoeCrystal

garyelder said:

Should I be concerned about my pension pot dropping from 540k to 520k in the last 2 weeks
I don’t plan to take any money for the next 3/4 years
my financial advisor will probably say don’t worry 
he was expecting it to grow 50k by June this year 

Sorry but your pension pot has only fallen by 3% or 4%, that is nothing and indeed can be expected as part of a normal day by day swing. I have seen far worse with my own pension fund. But surely, you should realise the risk since you must have built this pension pot over your working life and more than likely seen much worse swings. So really nothing to worry although you should always make sure that whatever funds you're invested in fit your personal risk. 

Workerdrone

If you are able to access the money within 3 years, I would assume you are at a minimum aged 52. Assuming you started building this pot at 21, then you have seen 31 years of market movements starting with the recession of 1990/91/Gulf War war, then Gulf war 2, The Dotcom crash, the credit crunch, the Brexit vote and more recently covid. To be honest a 3-4% drop right now doesn't sound too bad at all considering how pumped up the entire market has been. For my two ha'peth, do nothing right now or you risk locking in any losses and instead as others above have said have a good look at the level of risk in your current portfolio ready to make a change when the dust eventually settles. If you are feeling uncomfortable with this level of loss right now then imagine the stress it would cause you over a 30 year retirement period.

Albermarle

33scott said:

Most people's pots are taking a big hit, hold on tight for a rollercoaster ride.

As most people's pensions are invested in default funds /medium risk portfolios , they will have seen a drop around 4%, same as the OP . 

dunstonh

Should I be concerned about my pension pot dropping from 540k to 520k in the last 2 weeks

That isn't a hit.   That is just typical movement.  Its only 3.7% down.   You wait until you get to 15-20% down.  Thats a hit.

my financial advisor will probably say don’t worry 
he was expecting it to grow 50k by June this year 

No adviser should be suggesting such a thing.    Whilst advisers do use modelling, it tends to be based on long term averages and no sensible adviser or person should be predicting the short term.

Most people's pots are taking a big hit, hold on tight for a rollercoaster ride.

No they are not.   Most people are seeing only small reductions.    Only higher risk investors are seeing large hits.  And even then it's typically around the 10% mark which should not bother high-risk investors one bit.

garyelder

I probably panic a bit 

I should not look to often I think that’s my problem