My pension pots

jeff_chandler

Hi all. I haven't posted before in the pension section but I'm quite concerned about the rapid fall in value,

I have five pension pots totalling £191.000. One pot is only worth £16000, well it was a few months ago. I contacted Scottish widows to take 25% tax free.. I have been sent lots of information regarding, "drawdown".

  When I contacted them, they told me the pot was now worth £14.178  because it was in a policy that was outdated. I was given a few options regarding the rest of the pot. There was High to low risk, after studying the options I chose a low risk drawdown. Because I contacted Scottish Widows about one pension policy they wouldn't comment on my others so, I asked a valuation on them, I was shocked to hear I'd lost almost £40,000 since January. Surely they have a duty of care to notify me when the pensions began to fall?  
Jeff

TheMilkmansDad

No duty of care - do you expect the m to notify you if it'd gone up the same?

We're in a down turn at the moment so you can see a decrease in value of anywhere up to and over 20% in the last 12 months.

it's just bad timing to be drawing down at the moment.

Albermarle

If you lost £40K on £191K , then that is at the higher end of losses. Due to unusual market conditions many low risk funds have lost more than high risk ones in the last 12 months , and I am guessing this might be the problem.

If you have been monitoring the pensions over the last few years then you will have seen some quite good gains.

MEM62

jeff_chandler said:

I asked a valuation on them, I was shocked to hear I'd lost almost £40,000 since January. Surely they have a duty of care to notify me when the pensions began to fall? 

That level of drop, whist at the higher end of the scale, is not unprecedented and is far from a level that could be considered 'shocking'.  Your money is invested and it will have periods of growth and periods of loss.  The pension provider does not have a duty of care to notify each time you portfolio takes a drop - these are not unusual events.  If they did notify you each time there was a drop you would be hearing from them on a regular basis.  

The main person with a duty of care to your money is you.  Keep an eye on the values from time to time and take time every now and again to review your investments to make sure that they are appropriate for you and you goals.

MallyGirl

There was a very similar post a couple of weeks ago (just referencing a different provider). Maybe worth having a read rather than everyone repeating what was said last time

https://forums.moneysavingexpert.com/discussion/6386189/pensionbee-decimates-my-pension-pot/p1

dunstonh

Hi all. I haven't posted before in the pension section but I'm quite concerned about the rapid fall in value,

It isn't really that rapid.  Most declines happen over one quarter.  This one is over three so far.

 When I contacted them, they told me the pot was now worth £14.178  because it was in a policy that was outdated.

I think it is more likely they referred to outdated in respect of the drawdown options.  Old plans usually don't support most drawdown methods and need to moved.  The performance of the plan wont have anything to do with its age.

I was given a few options regarding the rest of the pot. There was High to low risk, after studying the options I chose a low risk drawdown. 

Ironically, its the low risk that has been suffering the most in this period.

Surely they have a duty of care to notify me when the pensions began to fall?  

No.  And why should they?  Investments zig zag all of the time.  Investments could be down today and up tomorrow.  During the day they could be up at 10am, down at 11am and back up again by 3pm.  

There is nothing going on at the moment that hasn't been seen before and wont be seen again.  Its all quite normal.

You saw a bigger loss in 2020.  What did you do about it then?
You had a similar loss in 2018.  What did you do about it then?
You had a similar loss in 2015/16.  What did you do about it then?
You had a much bigger loss over a longer period in 2008. What did you do about it then?
What about 2000,2001,20002.  Three negative years in a row. What did you do about it then?

Are you making snap and potentially rash decisions now because you only just noticed that investments have periods that go down as well as up?

Lack of understanding can lead you to do something you shouldn't.   Such as taking the money out of the pension.

Kim1965

How old are you and are you retiring now?? If not sit tight you have lost nothing until you sell.