Pension Worries

Leelah50

Just wanted some advice really, I am sure I am worrying over nothing but just want to check. I had transferred all my private pensions into one pot in 2021 with Standard Life. I chose this because my company I had worked for had negotiated a discount on the charges. At a volatility rating of 5. It was steadily going up from £56 K to £61 K. Then the pandemic hit, so saw it plummet and was in a loss, not a huge loss but a loss. It has steadily gone up and down since then. Between +1,000 and -1,000 down. I am sure as having read posts it is the state of the world at the moment with the unrest in some countries etc. Should I worry ? Reduce the volatility rating ? I work for the NHS so have a separate good pension with them. Just worried about this one

molerat

The big question is when will you want to access this pension ? If in the short term you may want to reduce the volatility, if longer term then higher volatility often works in your favour.

Leelah50

I am 50 now, so have a fair way to go

Leelah50

molerat said:

The big question is when will you want to access this pension ? If in the short term you may want to reduce the volatility, if longer term then higher volatility often works in your favour.

I am 50 now, so have a fair way to go. Was thinking more for my daughter really to take out 25 % when I am 57 ? As I think the year I turn 55 it changes to 57.......

dunstonh

Then the pandemic hit, so saw it plummet and was in a loss, not a huge loss but a loss.

By Summer 2020, most had recovered.  It was the the third biggest loss period in the last 25 years.

 as having read posts it is the state of the world at the moment with the unrest in some countries etc.  Should I worry ?

No.  It is actually great news for those paying in regularly. Not so much for those that are not but its just a negative period.  This is the volatile period of the economic cycle.   

Reduce the volatility rating ?

It has been the low volatility assets that have lost the most over 2022/23.   Higher volatility assets are up.

Being too low risk can be more damaging than being too high.

Albermarle

At a volatility rating of 5.

To be clear the Standard Life pension does not have a volatility rating of 5( or any volatility rating at all)  it is the investment that you hold within the pension that has this rating. A subtle but important difference that many people get confused about.

 I am sure as having read posts it is the state of the world at the moment with the unrest in some countries etc.

The world is always in some sort of crisis, wars happening etc , just sometimes it is a bit worse than other times. Also financial markets do not always react badly to the bad news you see on the TV. They are often more concerned about interest rates, company profits etc 

hen the pandemic hit, so saw it plummet and was in a loss, not a huge loss but a loss. It has steadily gone up and down since then. Between +1,000 and -1,000 down

That is what investments do, but the long term trend is normally up. 

flaneurs_lobster

Leelah50 said:

 I had transferred all my private pensions into one pot in 2021 with Standard Life. I chose this because my company I had worked for had negotiated a discount on the charges.

I have a similar-sized pot sitting with SL, may I ask what your charges are? Think mine may be rather chunky.

Albermarle

flaneurs_lobster said:

Leelah50 said:

 I had transferred all my private pensions into one pot in 2021 with Standard Life. I chose this because my company I had worked for had negotiated a discount on the charges.

I have a similar-sized pot sitting with SL, may I ask what your charges are? Think mine may be rather chunky.

The OP has an employer discount ( like I have from the past) so the pot size will not affect this.
I have a memory of one poster having a discount of 0.75%. Mine was 0.55% but after some 'noise' from me about competitors charges etc it increased to 0.65%.
The standard charge for funds and Platform ( it is just one charge) is 1%, but some funds will be higher.

flaneurs_lobster

Albermarle said:

flaneurs_lobster said:

Leelah50 said:

 I had transferred all my private pensions into one pot in 2021 with Standard Life. I chose this because my company I had worked for had negotiated a discount on the charges.

I have a similar-sized pot sitting with SL, may I ask what your charges are? Think mine may be rather chunky.

The OP has an employer discount ( like I have from the past) so the pot size will not affect this.
I have a memory of one poster having a discount of 0.75%. Mine was 0.55% but after some 'noise' from me about competitors charges etc it increased to 0.65%.
The standard charge for funds and Platform ( it is just one charge) is 1%, but some funds will be higher.

Mine are shown as Charges : 1.372%, Discount(s) : 0.5%, Rate : 0.872. About right for a bog-standard Active Money PP in drawdown?

Albermarle

flaneurs_lobster said:

Albermarle said:

flaneurs_lobster said:

Leelah50 said:

 I had transferred all my private pensions into one pot in 2021 with Standard Life. I chose this because my company I had worked for had negotiated a discount on the charges.

I have a similar-sized pot sitting with SL, may I ask what your charges are? Think mine may be rather chunky.

The OP has an employer discount ( like I have from the past) so the pot size will not affect this.
I have a memory of one poster having a discount of 0.75%. Mine was 0.55% but after some 'noise' from me about competitors charges etc it increased to 0.65%.
The standard charge for funds and Platform ( it is just one charge) is 1%, but some funds will be higher.

Mine are shown as Charges : 1.372%, Discount(s) : 0.5%, Rate : 0.872. About right for a bog-standard Active Money PP in drawdown?

I think you must have at least one fund in the portfolio costing more than the standard 1.0/1.1%, that is pushing the charges up to 1.372%?