Pension pot loss

dunstonh

So wondered what would have happened if those five months were the only payments I had paid in, would my pension be showing a minus figure, where I’d owe them?

In those 5 months, you have bought more units as the price of the units fell.  When the unit price goes back up, those units will make more money than the units you bought before they went down.

grumiofoundation

GibbsRule_No3. said:

For the past five months all the monthly payments I have paid in have actually lost more than has been paid in.  I am supposed to be in a less risk investment due to age, really should be retired by now.  So wondered what would have happened if those five months were the only payments I had paid in, would my pension be showing a minus figure, where I’d owe them?  I don’t think I need to take any money yet and kind of hope it will start to rise again before I do.  Just seemed odd that five months of payments could show a minus + figure.

No because as above you are losing a percentage of your investment not a set amount. 

Thrugelmir said:

grumiofoundation said:

Thrugelmir said:

No logic in describing a fund as cheap simply because it's value has fallen. Values fall because future profit expectations are lowered. 

The poster did say cheaper not cheap.

Cheaper is still a relative term. Semantics aren't a particularly usefull skill for investors. 

Cheaper is relative, I think could argue cheap is an absolute.
If you have decided to invest in something and it drops in value it is now cheaper to buy - not saying buy something just because it has dropped. 

Ensuring you understand what you are investing will only be helped by ensuring you understand the specific and contextual meaning of key information. 

GibbsRule_No3.

coyrls said:

If you add five contributions to a large pot and your pot goes down by 10% then it is possible that 10% would be greater than your five contributions.  If you add five contributions to an empty pot and your pot goes down by 10%, then the reduction would be the same as 10% of your five contributions.

£2150 in last 5 months pot is £28215 after 5 years.  It is just a stakeholder pension that I am using as a savings account.

coyrls

GibbsRule_No3. said:

coyrls said:

If you add five contributions to a large pot and your pot goes down by 10% then it is possible that 10% would be greater than your five contributions.  If you add five contributions to an empty pot and your pot goes down by 10%, then the reduction would be the same as 10% of your five contributions.

£2150 in last 5 months pot is £28215 after 5 years.  It is just a stakeholder pension that I am using as a savings account.

Just so long as you understand that it won't behave like a savings account, that you won't be able to withdraw anything until you are at least 55 and that if you withdraw more than the 25% PCLS, you will be restricted in future contributions to any pension.

garyelder

Strangely my pot has risen these last couple of days up by 1.5% how long this will last who knows pot just over 501k untouched 
speaking to a guy from fisher investment who wants my pot he reckons there will be an upturn soon probably telling me what I want to hear
No he’s not getting my pot, it’s invested elsewhere 

Thrugelmir

grumiofoundation said:

GibbsRule_No3. said:

For the past five months all the monthly payments I have paid in have actually lost more than has been paid in.  I am supposed to be in a less risk investment due to age, really should be retired by now.  So wondered what would have happened if those five months were the only payments I had paid in, would my pension be showing a minus figure, where I’d owe them?  I don’t think I need to take any money yet and kind of hope it will start to rise again before I do.  Just seemed odd that five months of payments could show a minus + figure.

No because as above you are losing a percentage of your investment not a set amount. 

Thrugelmir said:

grumiofoundation said:

Thrugelmir said:

No logic in describing a fund as cheap simply because it's value has fallen. Values fall because future profit expectations are lowered. 

The poster did say cheaper not cheap.

Cheaper is still a relative term. Semantics aren't a particularly usefull skill for investors. 

Cheaper is relative, I think could argue cheap is an absolute.
If you have decided to invest in something and it drops in value it is now cheaper to buy - not saying buy something just because it has dropped. 

Ensuring you understand what you are investing will only be helped by ensuring you understand the specific and contextual meaning of key information. 

That unfortunately is where investors trip up. Social media tends to create mantra's based on hindsight rather than informed discussion that educates. Cheap to me is when the market is shunning a particular stock or sector. Creating opportunities. 

Brenster

grumiofoundation said:

GibbsRule_No3. said:

For the past five months all the monthly payments I have paid in have actually lost more than has been paid in.  I am supposed to be in a less risk investment due to age, really should be retired by now.  So wondered what would have happened if those five months were the only payments I had paid in, would my pension be showing a minus figure, where I’d owe them?  I don’t think I need to take any money yet and kind of hope it will start to rise again before I do.  Just seemed odd that five months of payments could show a minus + figure.

No because as above you are losing a percentage of your investment not a set amount. 

Thrugelmir said:

grumiofoundation said:

Thrugelmir said:

No logic in describing a fund as cheap simply because it's value has fallen. Values fall because future profit expectations are lowered. 

The poster did say cheaper not cheap.

Cheaper is still a relative term. Semantics aren't a particularly usefull skill for investors. 

Cheaper is relative, I think could argue cheap is an absolute.
If you have decided to invest in something and it drops in value it is now cheaper to buy - not saying buy something just because it has dropped. 

Ensuring you understand what you are investing will only be helped by ensuring you understand the specific and contextual meaning of key information. 

Thanks for trying to explain to the poster, i wasnt going to bother posting as 99% of people understand the word cheaper, is not the same as the word cheap.  But there is always one !
No matter which way you look at it, if the value today is less than the value yesterday, it is cheaper, just like if it goes up, it will be dearer.....simples

GibbsRule_No3.

coyrls said:

Just so long as you understand that it won't behave like a savings account, that you won't be able to withdraw anything until you are at least 55 and that if you withdraw more than the 25% PCLS, you will be restricted in future contributions to any pension.

I already am nearly 68.  Would have retired prior to Covid, so stayed on, better than doing nothing. Even put my letter in to go at the end of this month, changed again, so a two day week from June 1st until who knows when!  So I won’t be needing the money yet.  SP and two other pensions already in payment.

Callum_J

Just for curiosity I checked my Scottish Widows pension plan today, and it’s still going down.
I wonder how long this will go on for, before we see things on the up again?

Albermarle

Callum_J said:

Just for curiosity I checked my Scottish Widows pension plan today, and it’s still going down.
I wonder how long this will go on for, before we see things on the up again?

As we can not see into the future then nobody knows. If it keeps on going down in the short term that is less of a worry, than how long it will take to get back to where we were at the start of 2022, or later last year.