Dwindling Pension Fund (as with everyone) Do i carry on contributing?

Leigh-Anne_60

Wow - has been an age since ive posted on any of these forums, although have still lurked on occasion over the years

As with everyone, i have seen upto 20% drop in my pension pots, which i understand does and will happen and happy to ride it out (although need to learn to stop checking and grow a pair ).  However atm i am contributing around £1500 per month by way of salary sacrifice, and my conundrum is do i carry on doing this, or do i reduce my contributions to the statutory amounts until this low blows over?  Or by buying in low, am i strengthening my future growths?

Bit of Background - Main reason for contributing is to keep me in lower Income tax bracket, as my whilst a modest 30K salary, this is supplemented by a further £24k BTL income. Ultimate aim would be to pay off some of my BTL debts at 55 (im 46 atm) and at least go part time - so another reason for throwing so much at pension now

Current combined pot is £184k, Main chunk in a dormant Aviva pot, small dormant with Royal Life, and my active one with Scottish widows. 

Whilst i know i should really seek professional financial advise, would be interested in hearing some opinions

TheMilkmansDad

if your happy to ride it out, keep contributing.

DE_612183

if you continue to contribute you still get 20% tax relief...

dunstonh

Dwindling Pension Fund (as with everyone) 

Why do you think your pension fund is dwindling? (indicating a drop towards running out).   A short term negative period, like hundreds we have had before is not the same as dwindling.

However atm i am contributing around £1500 per month by way of salary sacrifice, and my conundrum is do i carry on doing this, or do i reduce my contributions to the statutory amounts until this low blows over?  Or by buying in low, am i strengthening my future growths?

Stopping it and buying after the cost of the investments rises is not a good idea.     Periods like this are highly desirable for regular contributions.   

Current combined pot is £184k, Main chunk in a dormant Aviva pot, small dormant with Royal Life, and my active one with Scottish widows. 

Pensions do not go dormant.  They remain invested.

Marcon

Leigh-Anne_60 said:

Wow - has been an age since ive posted on any of these forums, although have still lurked on occasion over the years

As with everyone, i have seen upto 20% drop in my pension pots, which i understand does and will happen and happy to ride it out (although need to learn to stop checking and grow a pair ).  However atm i am contributing around £1500 per month by way of salary sacrifice, and my conundrum is do i carry on doing this, or do i reduce my contributions to the statutory amounts until this low blows over?  Or by buying in low, am i strengthening my future growths?

Bit of Background - Main reason for contributing is to keep me in lower Income tax bracket, as my whilst a modest 30K salary, this is supplemented by a further £24k BTL income. Ultimate aim would be to pay off some of my BTL debts at 55 (im 46 atm) and at least go part time - so another reason for throwing so much at pension now

Current combined pot is £184k, Main chunk in a dormant Aviva pot, small dormant with Royal Life, and my active one with Scottish widows. 

Whilst i know i should really seek professional financial advise, would be interested in hearing some opinions

Not 'everyone' has a dwindling fund - depends where they are invested.

When do you think this 'low' will blow over? If you stop contributing (or reduce your contributions now), when are you going to up them again? Given the tax benefits, your pension remains a hugely attractive investment option.

If you're invested in stocks and shares, then buying now while prices are low will indeed set you up for the future, depending on how long you've got until you need to access your pension funds, and the format in which you plan to take them.

You don't necessarily need professional advice, but you do need to get a basic understanding of investments so you can make informed choices (bit of a glib statement, that, but it does happen to true!). Try https://www.moneyhelper.org.uk/en/pensions-and-retirement/building-your-retirement-pot/pension-investment-options-an-overview for starters.

Leigh-Anne_60

Marcon said:

Not 'everyone' has a dwindling fund - depends where they are invested.

Guess ive got it in the wrong places

sheslookinhot

you’re spending too much time analysing things

Joey_Soap

Now is absolutely NOT the time to reduce contributions to a DC pension pot. If anything, you should be maximising your contributions with a view to maybe reducing in the future if life time allowance issues might arise.

UrbanAchiever

Agree.  Now is the time to buy MORE, not LESS.

Why would you wait for the prices to rise before you buy?  Doing that will guarantee lower returns in the future compared to buying low now.

dunstonh

Guess ive got it in the wrong places 

 Short term loss periods either side of positive periods isn't dwindling. 

Leigh-Anne_60

dunstonh 

Pensions do not go dormant.  They remain invested.

Only dormant in that I’m no longer contributing.  Guess wrong terminology