Should I be worried

anfirmor

I have two pension funds. One small from when I was self employed (ex HSBC) and a company pension. Neither is now being paid into. I know these are unstable times and many are seeing their funds suffer. 

But I’ve been plotting % change on both  with my company pension seeing significantly worse performance. The company pension was about 5x the value. 

Not seeking free financial advice but should I be worried by the differential?

thanks

Dazed_and_C0nfused

Maybe worth saying what each is invested in?

Albermarle

The time scale is far too short to judge. Generally you would expect funds that have suffered more this year, probably did better in the last few years. However without knowing what the investments are in the pensions it is difficult to comment more than that.
You need to look back 5 years at least , preferably 10 or more, to get a better comparison.

xylophone

One small from when I was self employed (ex HSBC) 

Could you explain the reference to HSBC?

dunstonh

Not seeking free financial advice but should I be worried by the differential?

You haven't told us anything about the funds involved.  So, we don't know if the difference is down to risk, where it is invested or what.  

 I know these are unstable times and many are seeing their funds suffer. 

No more than has been seen many many times before. 
2020 - dropped by around double the current levels
2018 - dropped by around the same level
2015/16 - dropped by around the same level
2011 - dropped by around half the current level
2008 - dropped by around double the current level
2000-2002 - three negative years in a row that dropped by around double the current level

anfirmor

Very kind and useful advice. Thanks.

Top is with ReAssure
Pensions Global Equity Pension Accumulator Series 01

bottom is Aegon
Retirement Choices
50/50 Cautious Managed Collection (Arc) Pn.

I understand that 8 months is too short to judge and there have been other times when funds crashed. When covid hit both funds took a tumble. 

I know I changed fund with Reassure roughly four years ago. Upped my risk a notch as it’s the smaller fund. Hedging my bets. I think my worry was if I was being hit a little more with Aegon as I’m no longer with the company associated with it. Pretty sure my management fees have doubled, even though Aegon assured my on the phone that nothing had changed. I hope that’s not the reason for a widening gap in fund level. 

Again thanks for any comments. It’s been interesting plotting the funds though I understand not very professional. 

dunstonh

Top is with ReAssure
Pensions Global Equity Pension Accumulator Series 01
bottom is Aegon
Retirement Choices
50/50 Cautious Managed Collection (Arc) Pn.

They are completely at the opposite ends of the risk scale.   

The global equity fund is 100% stockmarket and will be highly volatile.  It could halve in value in a loss period but it will almost certainly go up the most over the very long term (multiple economic cycles).

The cautious managed fund will have a lower equity level.  It will have less volatility.  It won't go down as much during negative periods but it wont go up as much in positive periods.  Think more like wavy line with this one compared to zig zag with the other.

 I think my worry was if I was being hit a little more with Aegon as I’m no longer with the company associated with it.

Has no impact whatsoever.

Pretty sure my management fees have doubled, even though Aegon assured my on the phone that nothing had changed. 

What makes you think that?   You are in one of their basic internal funds and the charges would be the default minus any discount you get. 

 I hope that’s not the reason for a widening gap in fund level. 

Nope. its purely due to low risk assets suffering a 5% event (i.e. 95% they will perform in line with expectation and 5% of the time they will not).    They have gone down particularly hard because of rising interest rates and inflation and the speed of riding rates.  It is the perfect storm for negativity.

anfirmor

Very helpful information. 

anfirmor

Ah. It’s probably the discount on management fees that ceased when I left that company. I know that was in my T’s & C’s. My poor explanation. 

anfirmor

Sorry again. I had a pension set up through HSBC (Midland Bank as it was) that they transferred to ReAssure. I moved that fund to a fund that ReAssures risk indicator claimed was a move from a low risk fund to a medium low risk fund, which is my current fund. So by no means super high risk according to them.

The advice given is so interesting and helpful.

Audaxer

anfirmor said:

Very kind and useful advice. Thanks.

Top is with ReAssure
Pensions Global Equity Pension Accumulator Series 01

bottom is Aegon
Retirement Choices
50/50 Cautious Managed Collection (Arc) Pn.

Just to clarify, is it the 100% equity pension that has only fallen just over 5%, and the 50/50 Cautious Managed Fund that has fallen over 20%?  If so, it will probably be because of the 50% bonds in the cautious fund. Bonds are usually less volatile than equity but this year they have been as volatile if not more so in many cases. In my portfolio for example, the bond funds and multi asset funds containing bonds, have had the poorest returns this year.