Pensions rallying?

Moonwolf

My DC pot is currently at an all time high and £2k (0.6%) above its January 2022 figure, but I have added £6k this year and inflation has reduced its real terms value by about 10% so I still think it is £14-15K or 5% below keeping pace.

Bianchiintenso

garyelder said:

Have pension pots risen in general this week, I had a very good week last week now just 5.5% down from the peak, but for some reason my app has not updated at all this week 

If mine is anything to go by yes it's reached an all time (figure) high sooner than I expected . Tomorrows another day of course

garyelder

That’s great news for now, just spoke to a mate his has reached an all time high also

P933alilli

Since April 5th last year after deducting contributions my dc pension is just +0.79% - c.10% = so - 9.21% this tax year. Is that to be expected, better or worse? Oh, it a RL with profits!

eskbanker

Collyflower1 said:

Since April 5th last year after deducting contributions my dc pension is just +0.79% - c.10% = so - 9.21% this tax year. Is that to be expected, better or worse? Oh, it a RL with profits!

As highlighted multiple times on this thread and others, it depends on what the underlying investments are....

lisyloo

Prism said:

Bianchiintenso said:

Sea_Shell said:

Our investment high point was end of 2021, pretty much across the board.

It's creeping back up there 😎, but still a few % to go.

"Go on, you can do it!!!"

  fingers crossed!

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

I know what you are getting at (buying low) but I want to check my thinking.
I'm a few years away from retirement and want to move some of my investments to lower risk and possibly even cash (detail to be firmed up with IFA), so should there be a pandemic/war when I wish to retire, I can.
So I don't want my pension to be down continually for the next few years as I don't want to crystallise loses.
Ideally I want it to shoot up when I retire and crystallise but I can't expect timing to be perfect, so I want to crystallise (or lower risk) at points where the value is at least reasonable.
Does that sound about right?

Albermarle

lisyloo said:

Prism said:

Bianchiintenso said:

Sea_Shell said:

Our investment high point was end of 2021, pretty much across the board.

It's creeping back up there 😎, but still a few % to go.

"Go on, you can do it!!!"

  fingers crossed!

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

I know what you are getting at (buying low) but I want to check my thinking.
I'm a few years away from retirement and want to move some of my investments to lower risk and possibly even cash (detail to be firmed up with IFA), so should there be a pandemic/war when I wish to retire, I can.
So I don't want my pension to be down continually for the next few years as I don't want to crystallise loses.
Ideally I want it to shoot up when I retire and crystallise but I can't expect timing to be perfect, so I want to crystallise (or lower risk) at points where the value is at least reasonable.
Does that sound about right?

If you intend to take your pension via drawdown over many years, then it is better to stay invested at least at medium risk. Low risk/cash may not sustain the pension over a long period and may well not keep up with inflation.
A crystallised pension can go up and down just as much as an uncrystallised one. It depends on what either is invested in.
Your strategy only makes sense if you plan to buy an annuity at retirement, or draw the pot down quickly.

P933alilli

eskbanker said:

Collyflower1 said:

Since April 5th last year after deducting contributions my dc pension is just +0.79% - c.10% = so - 9.21% this tax year. Is that to be expected, better or worse? Oh, it a RL with profits!

As highlighted multiple times on this thread and others, it depends on what the underlying investments are....

Thanks for your reply Eskbanker! The info i have is that the policy is invested in the RL open fund within the Royal London Long-Term Fund. I dont know if you can deduce anything from that, there are no specifics and i'm just given the following regarding the investment mix:-

      At december 31st 2021 (previous year end, 2020, in brackets!) it was 54% (44%)company shares, 15%(13%) property, 31%(36%) govt. and other bonds and 0%(7%) cash.

Obviously i wont know what the investment mix is at december 2022 as i'll only get the annual statement june'ish!

lisyloo

Albermarle said:

lisyloo said:

Prism said:

Bianchiintenso said:

Sea_Shell said:

Our investment high point was end of 2021, pretty much across the board.

It's creeping back up there 😎, but still a few % to go.

"Go on, you can do it!!!"

  fingers crossed!

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

I know what you are getting at (buying low) but I want to check my thinking.
I'm a few years away from retirement and want to move some of my investments to lower risk and possibly even cash (detail to be firmed up with IFA), so should there be a pandemic/war when I wish to retire, I can.
So I don't want my pension to be down continually for the next few years as I don't want to crystallise loses.
Ideally I want it to shoot up when I retire and crystallise but I can't expect timing to be perfect, so I want to crystallise (or lower risk) at points where the value is at least reasonable.
Does that sound about right?

If you intend to take your pension via drawdown over many years, then it is better to stay invested at least at medium risk. Low risk/cash may not sustain the pension over a long period and may well not keep up with inflation.
A crystallised pension can go up and down just as much as an uncrystallised one. It depends on what either is invested in.
Your strategy only makes sense if you plan to buy an annuity at retirement, or draw the pot down quickly.

thanks for your help and Sorry I should have been clearer.
The numbers are illustrative and detail to be thrashed out with IFA, but something like
2 years cash                            move during next 24? months
3-5 years low/medium risk       move during next 24? months
5-30 years higher risk              keep as is

what I was questioning was the statement that you want it to be down all the way up to retirement.
Isn't it somewhat standard to lower investment risk in the run up?

Prism

lisyloo said:

Albermarle said:

lisyloo said:

Prism said:

Bianchiintenso said:

Sea_Shell said:

Our investment high point was end of 2021, pretty much across the board.

It's creeping back up there 😎, but still a few % to go.

"Go on, you can do it!!!"

  fingers crossed!

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

I know what you are getting at (buying low) but I want to check my thinking.
I'm a few years away from retirement and want to move some of my investments to lower risk and possibly even cash (detail to be firmed up with IFA), so should there be a pandemic/war when I wish to retire, I can.
So I don't want my pension to be down continually for the next few years as I don't want to crystallise loses.
Ideally I want it to shoot up when I retire and crystallise but I can't expect timing to be perfect, so I want to crystallise (or lower risk) at points where the value is at least reasonable.
Does that sound about right?

If you intend to take your pension via drawdown over many years, then it is better to stay invested at least at medium risk. Low risk/cash may not sustain the pension over a long period and may well not keep up with inflation.
A crystallised pension can go up and down just as much as an uncrystallised one. It depends on what either is invested in.
Your strategy only makes sense if you plan to buy an annuity at retirement, or draw the pot down quickly.

thanks for your help and Sorry I should have been clearer.
The numbers are illustrative and detail to be thrashed out with IFA, but something like
2 years cash                            move during next 24? months
3-5 years low/medium risk       move during next 24? months
5-30 years higher risk              keep as is

what I was questioning was the statement that you want it to be down all the way up to retirement.
Isn't it somewhat standard to lower investment risk in the run up?

Perfectly reasonable way of doing it and looks like what is sometimes called the 'bucket' approach. There are other options, some simple others more complicated but the general theme when coming up to and during retirement is only take as much risk as you need to so have a chunk of lower risk options is usually a good idea.