Market effects on pension ?

shilts

With an estimated retirement date of around 2029 I was wondering what peoples thoughts were on the volatility of the market over the last year or two . My own thoughts are that as the value of my pension has decreased I have continued to add to it monthly over this time as I have over previous years . My contributions haven’t changed and how I see it is that having continued to add at a cheaper rate with the idea that it will set me up better for when things are a little less volatile . I’m totally comfortable with my risk level and just wonder if like me others see this as an opportunity and a good thing , many thanks. 
 

barnstar2077

I am a ways off accessing my pension, but I figure as long as I have some flexibility as to when I actually start to withdraw money it will be okay.  People who absolutely need it for a set date are going to be rolling the dice a bit.

dunstonh

 I was wondering what peoples thoughts were on the volatility of the market over the last year or two 

In line with expectations apart from gilts and fixed interest securities. However, they had to unwind at some point.  It just happened a lot quicker than expected.

2019, 2020 & 2021 were profitable. 2022 YTD is in a loss position but the scale of the current loss is less than in 2020 and similar to those seen in 2018 and 2015/16.

Albermarle

 I was wondering what peoples thoughts were on the volatility of the market over the last year or two

Less volatile than some previous periods.

My own thoughts are that as the value of my pension has decreased I have continued to add to it monthly over this time as I have over previous years . My contributions haven’t changed and how I see it is that having continued to add at a cheaper rate 

You are doing the right thing. Just keep making the monthly contributions

it will set me up better for when things are a little less volatile . I’m totally comfortable with my risk level and just wonder if like me others see this as an opportunity and a good thing 

Financial markets will always be volatile and unpredictable to some extent. If you go into drawdown then you may be invested another 30 years or so after retirement. So between now and then there will be a few boom and bust periods . You just have to hope that the overall long term  trend remains up and not worry too much about what happens in the short term.

Kim1965

shilts said:

With an estimated retirement date of around 2029 I was wondering what peoples thoughts were on the volatility of the market over the last year or two . My own thoughts are that as the value of my pension has decreased I have continued to add to it monthly over this time as I have over previous years . My contributions haven’t changed and how I see it is that having continued to add at a cheaper rate with the idea that it will set me up better for when things are a little less volatile .
I’m totally comfortable with my risk level and just wonder if like me others see this as an opportunity and a good thing , many thanks. 
 

Same as you, i keep making payments and hope it comes good. I think since xmas ive put in19k and my portfolio is down by 7k from its high. I think you have to keep plugging away.
I am more bothered about inflation tbh, some of my db pension has  a max7%i   rpi cap in deferement. 

Prism

I haven't really seen any volatility over the last year or two. Lockdown gave us a quick drop and recovery. Last one since then was 2018 if I recall.

NedS

The relative weakness in the pound (or strength of the dollar) has absorbed a lot of the market volatility for UK investors who are invested globally.

shilts

Thanks for the replies . I will keep adding monthly and hopefully I’ll benefit in the future. With a 2029 retirement hopefully they’ll probably be one or two more ups and downs to come , thanks.

[Deleted User]

NedS said:

The relative weakness in the pound (or strength of the dollar) has absorbed a lot of the market volatility for UK investors who are invested globally.

Good point. Year to date ~15% drop in GBP vs USD or 13% vs CAD  provides nice amortization and makes volatility appear a lot less if you count in sterling. 

bostonerimus

OP, if you are happy with your asset allocation then keep on doing what you are doing. Seven years is sort of medium term when it comes to investing, but remember you could well have another 30 years of investing and drawdown to come. You might want to think about preparing for retirement by reducing debt and making sure your cash savings are at a level to give you drawdown options.

NannaH

We will switch to just putting cash in our Sipps for the 5 years before we start to draw down.
That will give me £18k and DH at least double that so will be around 3 years required income ( on top of DH’s military pension, which will also go into his cash Sipp whilst working) .
Everything else will stay invested.