Drawdown options

My husband and I have spent weeks talking and emailing with Aviva pensions but get told something different every time, hence would be grateful for any further thoughts here. My husband took a drawdown Fund 3 which is supposed to be invested in a diverse portfolio, but on checking last week, it's invested in bonds at 99% and in cash at 1%.
We don't know anything about shares and investments, my husband's pension pot is very small as he was paid only minimal wage and spent years being his mum's carer and only working part-time. He struggles with maths hence I've been helping.
We have spoken with the impartial government funded pension advice service as well but they only gave some very general info.
We can't afford a financial advisor and we were told by at least one of the Aviva workers that Aviva will be doing all the investment and we don't have to do it ourselves or learn about financial instruments. However, looking at the current portfolio, I wonder if we are expected to decide what shares and markets to invest in? We have asked them in writing and waiting but wondered if anyone has had a similar experience with this provider?
Also, the pension was growing well for years but the moment we requested a drawdown, it went down by about 4% literally overnight! Does anyone know why such a sharp drop in value on transfer? We are watching the already small pension pot currently dropping at an alarming rate, - is anyone else seeing their pension funds go down at the moment? Any further info and thoughts will be gratefully received!

Comments

  • QrizB
    QrizB Posts: 16,624 Forumite
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    How big is this pot?
    How much have you asked to draw down from it?
    How long are you expecting it to last?
    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
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  • Albermarle
    Albermarle Posts: 27,052 Forumite
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    We are watching the already small pension pot currently dropping at an alarming rate, - is anyone else seeing their pension funds go down at the moment? Any further info and thoughts will be gratefully received!

    The US share market, which is by far the biggest in the world, has dropped about 8% in the last month, although to put that in context, it rose over 100% in the last 5 years.  Investments can go down as well as up.

    However if your husbands fund is 99% in bonds, it should be pretty stable, so I think there is some misinformation somewhere along the line.
  • dunstonh
    dunstonh Posts: 119,197 Forumite
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    We have spoken with the impartial government funded pension advice service as well but they only gave some very general info.
    They cannot give advice or be specific on personalised situations.   General guidance is their remit.

    We can't afford a financial advisor and we were told by at least one of the Aviva workers that Aviva will be doing all the investment and we don't have to do it ourselves or learn about financial instruments. 
    Aviva's pathway funds will do the investment selections for you but you still need to select the level of risk.

    Also, the pension was growing well for years but the moment we requested a drawdown, it went down by about 4% literally overnight!
    Conicidence.

    Does anyone know why such a sharp drop in value on transfer?
    Without knowing the dates involved or the type of bonds, no-one can say.

    No bonds are down by 4% in the last month. Nor 3 months apart from index linked gilts.  Over 6 months,  gilts are down 4% but its been steady and index linked gilts down nearly 10%.    1 year is flat or positive apart from index linked gilts which are down 6%.    


    We are watching the already small pension pot currently dropping at an alarming rate
    Only high risk tech is going down fast over the last few weeks but they are not bonds and that wouldn't fit with your comment about being invested 99% in bonds.

    Give us the name  of the fund(s) you are in.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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