Pensions rallying?

Albermarle

 mainly in standard HSBC global strategy Moderate doing better than the the Vanguard LS60 with smaller chunks in HSBC adventurous and AJBell adventurous.

There is no HSBC GS fund called 'Moderate', presume you mean 'Balanced' It is still around 7% down since Jan 1st 2022. The HSBC adventurous is down about, but the AJ Bell fund is up, which is presumably why her SIPP has performed pretty well.

AJ Bell multi asset funds do seem to have performed very well recently.

Robo performance: January 2020 - June 2022 | Boring Money

( bit out of date now)

Bianchiintenso

Albermarle said:

 mainly in standard HSBC global strategy Moderate doing better than the the Vanguard LS60 with smaller chunks in HSBC adventurous and AJBell adventurous.

There is no HSBC GS fund called 'Moderate', presume you mean 'Balanced' It is still around 7% down since Jan 1st 2022. The HSBC adventurous is down about, but the AJ Bell fund is up, which is presumably why her SIPP has performed pretty well.

AJ Bell multi asset funds do seem to have performed very well recently.

Robo performance: January 2020 - June 2022 | Boring Money

( bit out of date now)

Yes my financial terminology needs brushing up on

Adyinvestment

Prism said:

Are you already retired? If not surely you want your pension to go down rather than up for the next few years?

I am pretty sure most people would rather their pensions keep going up every year without any downturns.

Pat38493

Adyinvestment said:

Prism said:

Are you already retired? If not surely you want your pension to go down rather than up for the next few years?

I am pretty sure most people would rather their pensions keep going up every year without any downturns.

Instinctively yes but maybe what is being implied is that if markets are down, you can buy more units with your money, so your ideal situation is for markets to be down in the years running up to retirement then shoot up forever after.

dunstonh

Adyinvestment said:

Prism said:

Are you already retired? If not surely you want your pension to go down rather than up for the next few years?

I am pretty sure most people would rather their pensions keep going up every year without any downturns.

They may prefer to see that but in reality, that would lower the long term returns.    Negative periods are great news for those paying in monthly or able to top up. 

Adyinvestment

My post was a bit tongue in cheek, to imply it would be great if the markets went up year after year and never had a pullback....ever 

Prism

Adyinvestment said:

Prism said:

Are you already retired? If not surely you want your pension to go down rather than up for the next few years?

I am pretty sure most people would rather their pensions keep going up every year without any downturns.

They probably would but it wouldn't be ideal. After the first ten years of contributing to my pension I found that I had less in the pot than I had contributed. At the time it felt rubbish but with hindsight it was an amazing start.

Adyinvestment

Although I did initially post a little tongue in cheek, this has got thinking, I would love to see a calculator comparing this that could be played with.

Take Prism's above experience and assuming 2 people both in funds averaging 7% year.

100K pot with a £1k month contribution

After 10 years Prism has under 220K, the other person has £374k!

Okay, so now Prism may have more units but it will take decades for Prism to get even assuming all is equal going forward. This is going to be very heavily skewed depending on pot size and contributions and when the downturns happen.

*edited because of bad maths

Prism

All I can add is that in the next 15 years after the first 10 I annualized at around 14% but that was likely only possible due to the lower valuations after the first 10 years. After a period of stagnant returns we can't assume that all things are equal going forward. So in my case being able to build up a decent pot at low cost due to the 2000 and 2007 crashes really helped before next 15 years.

Adyinvestment

It makes for a good thought experiment, it is very different for someone at the beginning of their pension saving with decades ahead of them, compared to someone in their last decade before drawdown who has a large pot and can only contribute a small percentage of that pot each year.