What happens if my workplace pension pot loses value without going bust?

Linton

pieroabcd said:

Choice... Assuming the case that I didn't do any choice and left the investment strategy as they chose at the beginning?

That is a choice.  Perhaps if you told us what it was we could comment in greater detail.

Your money is very likely to be invested in shares from across the world and in bonds issued and guaranteed  by the UK government and possibly other governments.

Over the short term there could be serious falls but over the long term for shares globally to lose a large % of their  value in £ terms would imply that the majority of companies across the world were losing money and that the world economy had collapsed.  UK Goverrnment bonds failing would imply that the UK ceased to exist as a sovereign state.  In either case your pension could well be the least of your worries.

pieroabcd

MX5huggy said:

You really need to tell us what company and what fund your pension is in because the protections for a 1980’s closed DB pension and a modern DC with everything in between are entirely different. 

I'm almost certain that it's a modern DC, but I'll have to check with them and find out the details.
Anyway, it's a huge group.

Brie

pieroabcd said:

So the loss is such only at selling?

In that case it could be sufficient to wait, if you have time.

So it's the same as with share trading. 

I mentioned previously about Putin invading Ukraine.  Came out of the blue for many of us. 

I had some shares from my employer and I was waiting for a good price to sell them.  I was looking at them daily and kept thinking "if they just get up to £2 a share, then I'll sell".  So I watched them edge up £1.95 and then they hit £2.05 and I thought "maybe they'll get higher, maybe I'll wait for £2.20".  And it edged closer and closer and then Putin happened.  And the price dropped to £1.10 or similar overnight.  I've still got some of these shares and the price is up to £2.60 so has recovered very nicely.  Predictions are that it will hit well over £3 so I'm holding out as I'm not in that big a hurry.  

Albermarle

pieroabcd said:

MX5huggy said:

You really need to tell us what company and what fund your pension is in because the protections for a 1980’s closed DB pension and a modern DC with everything in between are entirely different. 

I'm almost certain that it's a modern DC, but I'll have to check with them and find out the details.
Anyway, it's a huge group.

If it is a modern DC, and you are invested in the default fund, then the likelihood of it dropping 80% is extremely low, unless there is some catastrophic global event, worse than anything we have ever seen.
Something like a 30% drop would be possible, but it should recover again in the fullness of time. 

Marcon

pieroabcd said:

MX5huggy said:

You really need to tell us what company and what fund your pension is in because the protections for a 1980’s closed DB pension and a modern DC with everything in between are entirely different. 

I'm almost certain that it's a modern DC, but I'll have to check with them and find out the details.
Anyway, it's a huge group.

The fact your employer or pension provider (not clear which you mean) is part of a huge group has nothing to do with how your DC pension is performing. That is  solely dictated by the amount of money paid by you/the employer; the charges levied by the provider; and (crucially) your investment choices - as others have said, leaving your money in the default fund is a choice, albeit a passive one.

Finding out the details could be a very good start, not least in terms of lessening your anxiety!