20% drop in 6 months.

Fairdeal

Scottish Widows pension fund from previous employment with no ongoing payments in (or out) has fallen from 72k to 58k since December. The money is in their Pension Protector Fund and Pension Portfolio 4. I am 62 and not playing the long game. Any suggestions? Let it ride? Move it? 

400ixl

What is not playing the long game? Wanting to retire in 6 months or 5 years? What do you plan to do with the pension, money purchase, drawdown? What other pensions do you have or cash reserves?

Timescales and plans would all change potential decisions. Also remember people on here won't give financial advice, only opinions, best to consult an IFA to get that advice.

garyelder

I think we’re all in the same boat, mine now down 10%  I think hold on tight we’re in rough waters for me I have spare cash so I’m hoping interest rates rise which I’m sure they will

Mick70

most peoples pensions / S+s ISAs will be down 10% mark , so long as you dont need access now then just do nothing , they will eventually rise it is just nobody can say what timescale is , could be 5 months could be 5 year
If need acess now however and have no cash reserves then im sure wiser posters than me will offer advice 

Im assuming this is why funds de-risk as you approach retirment so that they don't fall as much in bad times ?

dunstonh

Most people are down around 8-15% but those that are heavy in gilts or US technology are down more.

We are in an unusual period where low risk investments have fallen more than medium and high risk investments (other than US tech).

 I am 62 and not playing the long game. Any suggestions? Let it ride? Move it? 

Normally the answer is to close your eyes to the value and come out the other side.   However, timescale has a lot to do with that.

steampowered

Don't just look at the last 6 months. What has happened to your money over the past 2 years? past 5 years? past 10 years? 

The stock markets are back to where they were in 2021. The markets are higher than they were in 2021, 2020, 2019, 2018 or any point before that.

So despite these drops you have still made money and are getting probably a lot more than you invested.

If you have been invested longer than 6 months you will have made money by investing. Investing is a long term game. Sometimes years the markets go down some years they go up. Unless you are planning to spend all of the money on booze and fast cars over the next year or two, the money will need to last a fair few years yet. 

bostonerimus

If you don't have to access the money for a few years then let it ride, selling would just lock in your losses. If you are still working make sure you save some money into a cash buffer that will let you ride out downturns when you retire.

Your dilemma is one created by the changes to pension provisions that transitioned many people from DB pensions to DC pensions and put them in charge of fund investments and exposed them directly to the risks or the markets. The danger is that people have to sell investments in a down market and that is the classic sequence of return risk that is a quick way to destroy a retirement income plan.

westv

The UK stock market has virtually gone nowhere in the last 5 years at today's level.

Roger175

westv said:

The UK stock market has virtually gone nowhere in the last 5 years at today's level.

If by that you mean the FTSE100 is pretty much where is was 5 years ago, then that's true, but my Pensions/ISAs which are heavily invested in FTSE 100 companies have nevertheless increased significantly in that period due to the dividends received 

tigerspill

The question for me is rather than selling a locking in losses, is whether to buy in more.  We have just inherited some money and trying to work out what to do with it (other than blowing it).
I have been considering a half/half split between CGT and PNL.

DE_612183

same boat - I have Halifax / scottish widows - mainly going down but also goes up some days - I'm trying not to keep a daily check on it but it's hard!