Pensions advice for utter dummies

[NutsaboutFruit]

My question about lifecycle pensions in Investments didn't garner any replies, so I'm going to look elsewhere for help.

Anyone know of how to get advice on a specific pension issue if you are are the kind of person who really, really, really struggles to "get" it, especially where the sums involved are too small to think of consulting an IFA? My workplace pension team cannot help because "We are unable to give financial advice".

I know people are going to suggest the forums at moneysavingexpert.com, but I've had a wander around there and unfortunately it doesn't seem very dummy-friendly... it's mainly people with huge pension pots discussing complex issues, in fact some of the replies are bit scathing to people who ask stupid questions. That'd be me!

What's the question?

If you're planning to carry on saving into a pension in the future then an IFA is likely to be willing and able to help.

I’m on a really good FB group “financial independence UK”
No question will be deemed as “for dummies” and although no one will be able to offer you financial advice, there will be someone who knows the factual answers to your questions and a lot of “in that situation, I’d do xyz”

The answers will likely be to the point and lacking in any fluff, no one would dream of being scathing or belittling.

What's the question? I'm sure someone here could help.

Thanks@LadyGardenersQuestionTime

Unfortunately the sums involved are so small that an IFA would laugh at me!

I'm only four years from retirement, and after a bit of a wake-up moment just over a year ago I decided to start chucking the majority of my salary into a workplace AVC fund and live off my other savings for a while. Unfortunately I picked the wrong moment. Because of the recent crash the AVC fund is currently worth £3,000 less than I've paid in and dropping by the day. I've checked, and it seems I'm in a lifecycle fund which is 70% gilts. Not ideal at the moment, is it? I'm retiring in 4 years' time and don't have decades to hang around waiting for recovery. I'm thinking it might be wise to stop paying into that fund and just save the money as cash from now on. Am I right? Or is that shortsighted?

From a financial services background here.

My inclination would be to carry on as you are. Stopping paying in now won't achieve much. By carrying on paying in now you are investing in the market at a low and will also benefit from pound cost averaging so when markets pick up you will see the benefit, less so if you cease contributing. By carrying on contributing you will also still benefit from tax relief at source, so the contributions are benefitting from an instant uplift from that.

4 years is a reasonable time for recovery, markets are cyclical running on average at 5 years so its not out of the question to see recovery.

You can contact your pension provider and check what the investment options are.

Thanks so much, everyone.

It's the 70% gilts element of the fund that are scaring me. Bonds aren't likely to bounce back as quickly as equities, are they? But yes, there is the continuing tax relief to take into consideration too.

If you contact the provider they might have a more balanced fund you can move into that isn't a lifestyle strategy. That is typical of a lifestyle strategy close to retirement and the aim is to reduce losses, so whilst you might not see the growth your pension value would have decreased more if it had a higher allocation to equities over the past few months.