Have all pensions dropped in value

plumb1_2

Just checked one of my pension RL and quite surprised it’s gone up by £4k in the last 6 months. I expected a drop.
Maybe as it’s in a with profits fund, as I only put in £50 p/m

Flugelhorn

DH has one "with profits" that apparently has gone up but much of that is some bonus that can't be guaranteed.....

NedS

No, not all. The broader markets have dropped but some sectors have risen.

plumb1_2

It’s gone up only a small percentage from £232k to £236k from April, 

dunstonh

Have all pensions dropped in value

No.

Just checked one of my pension RL and quite surprised it’s gone up by £4k in the last 6 months. I expected a drop.

Guaranteed growth rate?
Guaranteed minimum maturity value?
Are you looking at current value only (and not transfer value)? - CV would only ever go up or stay the same with a WP fund.

You need to look at 9 months as the drops in some markets started back in November.
RL has been pretty good on the low risk assets during this period.

bostonerimus

Not all, I have a deferred annuity with a rate that is pegged to prevailing interest rates with a minimum of 3% and it is currently crediting at 4.9% per year. It's not keeping up with inflation, but it's increased every year since 1987. I also have a defined benefit pension that will get an increase indexed to inflation. When markets are down the downsides of DC pensions are highlighted. DC pensions that are invested in equities and bonds will probably be down in value from their highs right now. So it might be best to not only be diversified in your DC investments but also in the ways you fund your retirement. 

Albermarle

plumb1_2 said:

It’s gone up only a small percentage from £232k to £236k from April, 

You must have put in more than £50 a month in the past ??

plumb1_2

Albermarle said:

plumb1_2 said:

It’s gone up only a small percentage from £232k to £236k from April, 

You must have put in more than £50 a month in the past ??

No it was £70 p/m until 4 yrs ago then they informed me I could only invest £50 p/m due to my retirement age being wrong. And also lost the life insurance part of the pension.
plus RL gave me £40k plus for giving up aGAR, then another £39k when they moved Scottish life pension into there main fund. Both were voted on.
Without the 2 payments it would be near the £150k mark I guess.
Never really bothered about pensions in the past,(silly really) but retirement creeps up on you prity fast I’ve learnt to my cost. Only in the past 12mths reading mse pension forum have I gained some insight to the error of my way sadly.

P933alilli

My RL with profits transfer value increased by 9.5% in the last tax year even after deducting contributions. This includes a final bonus which isnt guaranteed. But the value is what i'd receive now if transferred to another provider.

dunstonh

Collyflower1 said:

My RL with profits transfer value increased by 9.5% in the last tax year even after deducting contributions. This includes a final bonus which isnt guaranteed. But the value is what i'd receive now if transferred to another provider.

Could some of that be down to a reduction in transfer penalty reductions (these tend to step down annually on older plans?  Some have a cliff edge where they drop more significantly at certain ages.  Current value excludes exit charges but transfer value includes them.

P933alilli

What is the difference between current value and transfer value? I have been told that there would be no charge if i wanted to transfer to another pension! And the same applies if i want to cash in , there is no charge.