Capita workplace pension - huge loss

Malthusian

Rich1976 said:

Yes there’s always been a booklet sent by the pension company. Detailing the lifestyle fund which everyone has been enrolled into and how it works and then several pages of various fund names and their charges.
for those that know nothing about investments , all of those funds may well have been written in Chinese and so most people would stay in the default scheme.

If I had a five figure sum in an account and was given a booklet which explained what the account did and what would happen to my money, and for whatever reason it was only available in Chinese, I would take some Chinese lessons. 

thriftytracey

Should those of us in drawdown plans with majority of funds in bonds and gilts move to a greater proportion of equity based funds?  Or just stick it out?  I have lost 1.25% value in three weeks.   I wonder why? There has only been one interest rate rise in that time, or is it world markets and what's happening in China?   Biggest loss for me since October 2022 (8.09%)and we know what happened then.

Am I panicking?

Linton

thriftytracey said:

Should those of us in drawdown plans with majority of funds in bonds and gilts move to a greater proportion of equity based funds?  Or just stick it out?  I have lost 1.25% value in three weeks.   I wonder why? There has only been one interest rate rise in that time, or is it world markets and what's happening in China?   Biggest loss for me since October 2022 (8.09%)and we know what happened then.

Am I panicking?

1.25% variation in a pension pot in 3 weeks is just noise.  You could easily have that level of volatility, up or down, many times in a year. Given enough time equity should increase in value more than other  mainstream investments but over short periods it can vary a lot.

Pat38493

thriftytracey said:

Should those of us in drawdown plans with majority of funds in bonds and gilts move to a greater proportion of equity based funds?  Or just stick it out?  I have lost 1.25% value in three weeks.   I wonder why? There has only been one interest rate rise in that time, or is it world markets and what's happening in China?   Biggest loss for me since October 2022 (8.09%)and we know what happened then.

Am I panicking?

There is a bit of an argument that with interest rates as high as they are now, you are better off in short term gilts or money market funds than bonds but then the problem is knowing when to shift back again.

I recently had to re-invest a pension that I transferred from one provider to another and I chose to invest the part that I wanted to be lower volatility into money market rather than bonds.  Whether this was a good choice I guess can't be known until much later.

garyelder

I would have thought you would have made your loss up this week as mine has gone up over 2%

thriftytracey

garyelder said:

I would have thought you would have made your loss up this week as mine has gone up over 2%

I will have a look in a few days.  I last checked it on 30th August.

coyrls

thriftytracey said:

garyelder said:

I would have thought you would have made your loss up this week as mine has gone up over 2%

I will have a look in a few days.  I last checked it on 30th August.

I'd give it a few years before checking again.

thriftytracey

coyrls said:

thriftytracey said:

garyelder said:

I would have thought you would have made your loss up this week as mine has gone up over 2%

I will have a look in a few days.  I last checked it on 30th August.

I'd give it a few years before checking again.

I might have departed by then ...