Pension pot movement

Albermarle

gh67 said:

I’m 54 and plan to retire next year or the year after, we plan not to touch my pension pot until I’m 60. We will live off savings and my wife will draw from her pension. When I checked my Quilter formally old mutual pension tonight it’s down 6.5% on this time last year but down about 8% since January, I’ve no idea if this is normal but I believe pensions have been hit hard recently. 

8% down since January is pretty standard, but 6.5% down compared to this time last year , is a bit unusual. 

dunstonh

Albermarle said:

gh67 said:

I’m 54 and plan to retire next year or the year after, we plan not to touch my pension pot until I’m 60. We will live off savings and my wife will draw from her pension. When I checked my Quilter formally old mutual pension tonight it’s down 6.5% on this time last year but down about 8% since January, I’ve no idea if this is normal but I believe pensions have been hit hard recently. 

8% down since January is pretty standard, but 6.5% down compared to this time last year , is a bit unusual. 

Not really.

Gilts and bonds alone are down almost 10% from this time last year.  Japan is down similar along with emerging markets.  Tech heavy US funds are down significantly (BG American, for example is 45% down) . Europe is down 6%

So, you are starting to see 12 month returns showing  negatives ranging in the 5% to 10% ballpark

Albermarle

dunstonh said:

Albermarle said:

gh67 said:

I’m 54 and plan to retire next year or the year after, we plan not to touch my pension pot until I’m 60. We will live off savings and my wife will draw from her pension. When I checked my Quilter formally old mutual pension tonight it’s down 6.5% on this time last year but down about 8% since January, I’ve no idea if this is normal but I believe pensions have been hit hard recently. 

8% down since January is pretty standard, but 6.5% down compared to this time last year , is a bit unusual. 

Not really.

Gilts and bonds alone are down almost 10% from this time last year.  Japan is down similar along with emerging markets.  Tech heavy US funds are down significantly (BG American, for example is 45% down) . Europe is down 6%

So, you are starting to see 12 month returns showing  negatives ranging in the 5% to 10% ballpark

OK,  although my portfolio is also down nearly 7% ytd , I am still at a similar level to 12 months ago, so hence my comment.
Just rechecking I see that the last few days have actually now pushed me 1.5 % down compared to 12 months ago. 
I am positioned relatively defensively, so seems to be working.

michaels

Of course even flat 12 months to date actually means a 7% fall in real terms.

Albermarle

michaels said:

Of course even flat 12 months to date actually means a 7% fall in real terms.

Better than a 20% fall though....

Rhanaroo

dunstonh said:

I’m 54 and plan to retire next year or the year after, we plan not to touch my pension pot until I’m 60. We will live off savings and my wife will draw from her pension

That probably isn't the best way to do it.  You will be wasting your personal allowance.   You may wish to revisit your drawdown strategy (covering savings/pensions and any other wrappers).

Interesting -  I may have gone the wrong way - I retired in September 2021 and was due to start drawing down the maximum tax free amount in April 2022 but because of the state of the markets and the fact I didn't need the money I made the decision to leave it in my pension.

Would I be better to start drawdown now to get the "extra years" tax relief?

MallyGirl

You haven't given enough info. 

By leaving it in you may eventually pay 20% tax on it. Draw it down and buy the same fund in an ISA and then it wouldn't matter what the 'state if the market' was. You'd just have moved an investment from a taxable wrapper into a tax protected wrapper.

Rhanaroo

MallyGirl said:

You haven't given enough info. 

By leaving it in you may eventually pay 20% tax on it. Draw it down and buy the same fund in an ISA and then it wouldn't matter what the 'state if the market' was. You'd just have moved an investment from a taxable wrapper into a tax protected wrapper.

I now understand.

Not sure why my IFA didn't recommend this. Maybe a question I need to ask

His attitude seemed to be if you don't need to take it leave it where is. 

Thrugelmir

Rhanaroo said:

MallyGirl said:

You haven't given enough info. 

By leaving it in you may eventually pay 20% tax on it. Draw it down and buy the same fund in an ISA and then it wouldn't matter what the 'state if the market' was. You'd just have moved an investment from a taxable wrapper into a tax protected wrapper.

I now understand.

Not sure why my IFA didn't recommend this. Maybe a question I need to ask

His attitude seemed to be if you don't need to take it leave it where is. 

Are you utilising your annual ISA allowance? 

Rhanaroo

Thrugelmir said:

Rhanaroo said:

MallyGirl said:

You haven't given enough info. 

By leaving it in you may eventually pay 20% tax on it. Draw it down and buy the same fund in an ISA and then it wouldn't matter what the 'state if the market' was. You'd just have moved an investment from a taxable wrapper into a tax protected wrapper.

I now understand.

Not sure why my IFA didn't recommend this. Maybe a question I need to ask

His attitude seemed to be if you don't need to take it leave it where is. 

Are you utilising your annual ISA allowance? 

I haven't done yet this year but I will be doing