My pension pot is taking a big hit

Malthusian

garyelder said:

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

Was the feel-good factor from seeing it was up a bit worth all the anxiety from when it was down?

Like someone said a few pages back, stop looking.

"Hold still Mr Malthus, and I'll administer your anaesthetic." "Actually doc, do you have any drugs that will allow me to remain fully conscious during the operation? And don't feel any need to rush. I like unpleasant but ultimately beneficial experiences to be as painful and drawn-out as possible. That's why I check the value of my investments every day."

ComicGeek said:

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.

Uninstall it? Re-downloading apps only takes half a minute on my phone, which wouldn't be a major obstacle on the occasions you want to add more cash.

2Sheds

I stopped looking an my Scottish Widows pension after it dropped 10% and then today had a peak !!! - 20% now

Voyager2002

On the 'looking -- not looking' issue there are only two approaches that make sense. Either you just don't look at all, which takes a modicum of self-control. Or, if you cannot resist it, then look at the various different investments and try to work out the reasons why some are going up and others down. Relate these changes to the news, including the reports in the Business section of newspapers. This can be fascinating and gives you a different slant on current events, and if you are absorbed in working out the reasons then you can feel detached and less hurt by the inevitable falls.

For instance, I am intrigued by the fact that one share in my portfolio has done well this year, and pleased that it was the only one that I suggested as a good buy to friends and family. Of course, all my other investments are down, but the total loss is not terribly interesting.

Malthusian

2Sheds said:

I stopped looking an my Scottish Widows pension after it dropped 10% and then today had a peak !!! - 20% now

There is a typo in your post - it should have read "I've been constantly looking at my Scottish Widows pension".

"Hi, I'm Malthusian, and I'm a dropaholic. I haven't looked at my pension value for 8 months." *applause ripples around village hall* "...except when I had a triple shot of looking at it half an hour ago. With an ISA chaser." *tumbleweed*

2Sheds

I though I was going to get picked up on spelling peek as peak !!

dunstonh

2Sheds said:

I though I was going to get picked up on spelling peek as peak !!

"thought"

There you go.  We ignored your peek/peak but pulled you up on that one

paulant1803

I worry too, I'm 57, hoping to slow down at 60. Definitely can't fully retire early.

My pot has fell from 100k to 85k since Christmas in Scot Widows pen portfolio 4

Looks far worse with a smaller amount invested!

My advisor says sit tight but the lower the drop the longer it takes to get back to where it started. I can't see growth for another 6 months at least but how far would it have fell by then.

Stick or twist!

dunstonh

Looks far worse with a smaller amount invested!

I would have thought it was the other way around. A 15% loss on £100k is £15,0000.   A 15% loss on £1m is £150,000.

My advisor says sit tight but the lower the drop the longer it takes to get back to where it started. I can't see growth for another 6 months at least but how far would it have fell by then.

That isn't how it works.    For example, in 2020, there was a larger drop. Markets fell by around 35%.   Yet most people had recovered between 5-12 months later.  That recovery was quicker than the 2018 and 2015/16 drops which were both smaller (similar size to now).

As for not seeing growth for another 6 months, why do you think that?   We may not see growth for 6 months.  We may see it get worse. We may see it go up and down but go nowhere but it is impossible to predict.    Markets price in what they know and they tend to be in advance of events happening.  For example, they already assume interest rates will rise to around 3.5%  The fact those roses wont occur until later doesn't matter.  Its mostly priced in now.  They know the cost of living squeeze is going to get worse before it gets better.  Again, that is priced in.      Its unknown things or unexpected changes that will cause the markets to get worse.  Known things will not.

DE_612183

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...

Mick70

15% down this end