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I'm in a money purchase scheme and it's dropped in value over 4% this calendar year.
Has it deferred any of your plans to retire waiting on market recovery and those who's funds that are in draw down your buckets all a bit lighter will you have to make adjustments to spend levels.?.
Originally posted by Kit Katt
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I retired seven months ago with all my funds in a DC pension pot and cash savings. I have set up a "bucket" strategy with more than enough cash and fixed interest savings bonds to last at least 5 years if needed (I could stretch to 10). I have a significant amount still invested and this dropped 4% in the last few days. It's of no concern at all because my retirement strategy is based on not touching this for 5 to 10 years.
I suspect that there will be greater volatility over the next few years and maybe even limited growth so my investments are mainly in less volatile multi-asset funds because I am protecting the funds I have rather than looking for growth. My goal is only to match inflation on the invested funds, anything above that is a bonus.
Like AnotherJoe said, if a 4% drop causes you to change your plans, what will happen when there's a 20% or more drop? Sounds like you need a more robust plan. I am pretty certain there are going to be bigger drops in the next 5 years.