My pension pot is taking a big hit

SouthCoastBoy

I think you need to look at the current political situation to realise there is going to be no short term resolution to the current crisis. The BoE have already increased their inflation figures, personally I think inflation is going to continue for longer, and ukraine war could drag on, or even escalate. I can't see a resolution any time soon. For these reasons I would not expect are recovery similar to 2020, as already mentioned on this thread ultimately nobody knows. Sometimes i think the BoE are worried about putting out a too gloomy forecast as panic would set in and wage demands would increase, just my hypothesis, but I always feel they are slightly behind the curve. I think 3 members of the rate setting committee voted for a 50bps increase, to me that would have made sense, sent a clear signal to the markets that they are serious about taming inflation, also the GBP is currently very weak against the USD and with the fed raising their rates by 75 bps I can't see an exchange rate recovery against the USD in the near future meaning imports become more expensive (e.g. oil) 

I have lost around 20 to 30% on my company pension (had a high of 470 now down to 375, that's after monthly contributions of around £1400/mth). Personal pension and S&S ISA have performed better, around 10% down. 

michaels

DE_612183 said:

My pension although taking a hit still has 25% tax relief and 15% growth over 5 years which is still a profit of 40% compared to stashing it under the mattress...

Won't you pay 15% tax on most of it on the way out?

Malthusian

michaels said:

DE_612183 said:

My pension although taking a hit still has 25% tax relief and 15% growth over 5 years which is still a profit of 40% compared to stashing it under the mattress...

Won't you pay 15% tax on most of it on the way out?

I think you mean either 20% on most of it or 15% on all of it (assuming 25% tax free lump sum and basic rate tax on the other 75%).
25% tax relief followed by 15% growth is actually 44% profit. Compounding baby. If you then pay 15% tax on the total on the way out, that still leaves you with a 22% profit.

michaels

Almost 2 years ago to the day I moved pension provider in cash so it seemed like a good moment to take stock of performance

My fund is up 10% (Yay)
The CPI deflator over the last 2 years is 11% (oops)

How have other people done in real terms over the last 2 years?

dunstonh

How have other people done in real terms over the last 2 years?

About the same as you as 2020 and 2021 were positive years and the recent drop is back to 2020 prices.

garyelder

My pension pot is still dropping the only winners are my financial advisor and who my pension pot is with You asset management 
I know many mates are in the same position all saying what do we do 

I can’t see no end to it 

Pat38493

garyelder said:

My pension pot is still dropping the only winners are my financial advisor and who my pension pot is with You asset management 
I know many mates are in the same position all saying what do we do 

I can’t see no end to it 

Technically they are not winners either as they are most likely paid based on the size of your pot so if it’s going down they are losing out too.

I don’t know anyone whose pension pot went up whit year - it’s been a negative year generally 

daz378

Only got  just over 1k in stocks and shares isa  continue to add approx 50 pound a month ...is down just over 50 quid...or 4.72%....I appreciate it's a bit of gamble....also put 50 in a simple saver with moneybox... hoping to have 5k plus in 3 years...together with L.A db pension...at 60 to have chance of reducing my hours

jimi_man

garyelder said:

My pension pot is still dropping the only winners are my financial advisor and who my pension pot is with You asset management 
I know many mates are in the same position all saying what do we do 

I can’t see no end to it 

Well you don't have to do anything. Investments go up and down over the years but the general overall long term trend is upwards. And the plus side is that if you're still accumulating then you're buying new units (stocks) at a lower price. 

garyelder

There will be more conflict around the world soon and further it will fall so far 54k from 540k
I need to get proper advice it seems