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How are personal pension funds valued?

If I put money into a personal pension now while the stock markets are relatively low, and they then return to where they were last summer how is the value of my pension pot worked out? Do I buy a number of "units" which can be valued from day to day?

I do realise that their value can go down as well as up, but it is the principle of how my funds are valued I am after. Sorry if it's a bit basic.

Comments

  • dunstonh
    dunstonh Posts: 121,226 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Do I buy a number of "units" which can be valued from day to day?

    yes.

    The concept is no different to unit trusts, ISAs and investment bonds. You buy units and the units have a daily value (exception will be legacy pensions or final salary pensions).
    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.
  • purch
    purch Posts: 9,865 Forumite
    the units have a daily value

    As determined by the Fund Manager

    All very opaque :mad:
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • purch wrote: »
    All very opaque :mad:

    Unfortunately yes - we had a member complain once that the unit price went down when the market it was tracking (it was a tracker fund) went up. The investment managers reply to the query about it was basically (although not in these words):

    "We won't tell you how that happened in case you use the information to your advantage in the future"
    I have worked for 5 years as a Pension Administrator and then a further year in a non-administrator pension role. I am not (and never have been) an adviser. Do not take anything I say as advice, it is information given on the best of my knowledge.
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