My pension pot is taking a big hit

Thrugelmir

Linton said:

Deleted_User said:

jim8888 said:

I feel the OP's pain. Since retiring last year, and now having to take practical steps to spend my money instead of theoretical spreadsheet modelling where I never actually had to withdraw any real cash, I can't help but fret over my investments. I really wish there was a halfway house between rotten returning, but guaranteed, annuities and having a pension pot exposed to whatever Putin is planning to do next. What I once viewed as quite a fun pastime, monitoring my DC pot, switching funds and so on, now really feels like a massive and quite risky responsibility. 

There is. One can buy an annuity with half the pot. 

Or have a portfolio allocation that matches your needs.  Hold sufficient non-equity so that you can withstand a 5-10 year crash and just accept that if the world as we know it collapses then you will have to join the soup kicthen queue like most other people.

Annuities offer guaranteed yields for life. Better rates than long dated Government bonds. Pooling risk has it's benefits. 

Linton

Thrugelmir said:

Linton said:

Deleted_User said:

jim8888 said:

I feel the OP's pain. Since retiring last year, and now having to take practical steps to spend my money instead of theoretical spreadsheet modelling where I never actually had to withdraw any real cash, I can't help but fret over my investments. I really wish there was a halfway house between rotten returning, but guaranteed, annuities and having a pension pot exposed to whatever Putin is planning to do next. What I once viewed as quite a fun pastime, monitoring my DC pot, switching funds and so on, now really feels like a massive and quite risky responsibility. 

There is. One can buy an annuity with half the pot. 

Or have a portfolio allocation that matches your needs.  Hold sufficient non-equity so that you can withstand a 5-10 year crash and just accept that if the world as we know it collapses then you will have to join the soup kicthen queue like most other people.

Annuities offer guaranteed yields for life. Better rates than long dated Government bonds. Pooling risk has it's benefits. 

I agree. Annuities are one option amongst many others that can be considered.  I may well buy one when I reach my 80's, but dont need the extra security at the moment. The key thing is to align your money management strategy with your requirements.  Dont aim simly for maximum return, just aim for sufficient.  Regard anything extra as a bonus.

[Deleted User]

Linton said:

Deleted_User said:

jim8888 said:

I feel the OP's pain. Since retiring last year, and now having to take practical steps to spend my money instead of theoretical spreadsheet modelling where I never actually had to withdraw any real cash, I can't help but fret over my investments. I really wish there was a halfway house between rotten returning, but guaranteed, annuities and having a pension pot exposed to whatever Putin is planning to do next. What I once viewed as quite a fun pastime, monitoring my DC pot, switching funds and so on, now really feels like a massive and quite risky responsibility. 

There is. One can buy an annuity with half the pot. 

Or have a portfolio allocation that matches your needs.  Hold sufficient non-equity so that you can withstand a 5-10 year crash and just accept that if the world as we know it collapses then you will have to join the soup kicthen queue like most other people.

Sure but bonds could crash too. Which translates to needing more of a “cushion” and ability to reduce expenditure if you rely largely on bonds and stocks.  Thats where annuities excel as a guaranteed type of fixed income. 

Kim1965

garyelder said:

And my pot is still dropping and the outlook looks bleak
What should I do 

 Just don’t look 

What are you invested in?? My sipp is up and down a bit, no sustained slide. 

garyelder

My pension pot is picking up momentum now down 41k since earlier this year

Albermarle

garyelder said:

My pension pot is picking up momentum now down 41k since earlier this year

So you are about 8% down, which is pretty typical . Markets are up significantly today , so if you look tomorrow you should see some recovery .

Mick70

dont panic

ComicGeek

Probably the worst thing I did was putting my pension app on my phone, as it's an effort not to look at it every day. Was actually a bit easier when I just got a paper statement every 6 months, even though I wished at the time for better access.

I don't want to remove it, as it's a simple way of adding any extra cash into the pension and S&S ISAs, but it does take effort to not obsess over it.

SouthCoastBoy

If its any consolation my works pension is down 18% from is peak. My sipp is performing better, equities bit down around 10%

Think there is plenty of room to get a lot worse, still worth a lot more than 2020

[Deleted User]

Current world situations are affecting all types of pensions no matter how the funds in your "pot" is invested.