Drawdown Pension funds

RodMaximus

I recently retired at the age of 72, and two years ago, my Financial advisor advised me to move my two pension pots into one Drawdown fund, bad timing, but none of us could have predicted the coming disasters that were inflicted in the coming months, and the inevitability that my funds lost money in the last 18 months, they did rally a few months ago, but still around 8k down from the initial amount transferred, 
However, some degree of stability has over the last 6 months, has returned to the markets, am i expecting too much, for my funds to rally in that time?
Has i have said, i am now 72, and "long term" may not apply:) should i cut my losses and move elsewhere? or sit tight?
Thanks

Pat38493

Could you elaborate on why you think that moving the funds into a single drawdown provider might have caused the drops in value?

The losses you are describing would probably have happened regardless since most people’s pension pot went down in the way you describe during the last 18 months (including  mine).  

That’s unless you are saying that you think the losses were triggered or made worse by the transfer?  Did you change the investment strategy when you merged them together?

Steve_666_

I've seen a drop in one sipp of around 10% since March, losing all the gains from the previous 6 months, starting to recovery now that the markets have responding to the US governments commitment to paying its bill.

dunstonh

, and the inevitability that my funds lost money in the last 18 months, they did rally a few months ago, but still around 8k down from the initial amount transferred, 

October was the low point but they should still be higher unless you are heavy in gilts.

However, some degree of stability has over the last 6 months, has returned to the markets, am i expecting too much, for my funds to rally in that time?

There has been (upto last week) very little movement over the last 6 months.  Up and down but not going anywhere unless you are heavy in equities.     The events of last week being important in respect of the last month falls and yet to show on valuations as it happened late on Friday.

Has i have said, i am now 72, and "long term" may not apply:) should i cut my losses and move elsewhere? or sit tight?

At 72, long term does still apply.  15 years (the common long term period) takes you to 87. 

Why would you cut your losses?  What has changed in the last two years that means that what you have now is unsuitable to what you did two years ago?  (1 in 5 years is a loss year. So, you were always going to see multiple loss years before you pass on.   Now you have seen a loss year, you are thinking off pulling out)

Albermarle

As said it is likely that the two original pots would have dropped if they had just been left as they were. Although the extent of the drops would depend on  if the investments in the original two pots were a lot different from the new drawdown pot. It is quite possible that the drawdown pot has performed better than the original two pots, but without details it is impossible to say.

 but still around 8k down from the initial amount transferred, 

What was the original amount ? £8K loss on say £200K would be not a bad result in recent circumstances.

RodMaximus

Albermarle, thanks for reply, it’s 8 on a 102k

xylophone

Have you ever accessed the pension (s)?

Or are you in the situation that thus far you have lived on your salary/state pension and will only now require to draw down the pension?

Or have other means so do not need to access the pension?

Pat38493

What funds is your pot invested in?  In most cases it’s not a good idea to exit the fund at the bottom of the market as you are locking in the losses.

How much are you taking out of the pot each year and what is your withdrawal strategy?  What is your expected spending needs per year going forward?

What is your financial adviser saying and does it make sense?  Do you mean an independent financial adviser or one who is part of a provider?

Do you have a full state pension?

As said by Dunstoh unless you have some serious health conditons, you would hopefully still need to plan for quite a few years ahead of you at age 72.