Out of the market for a week on pension pot transfer

[LeoSayer]

My work DC scheme is shortly transferring to a Master Trust arrangement.

This will result in a period of a week where it is not invested (in Global Equity index funds). Whilst this isn't my entire pension pot, it is a significant portion.

Markets have been volatile for the past few months and in fact the transfer was suspended due to this.

Do I just have to suck up any lost market gains or is there a way to mitigate?

[Mr Pointy]

You might find you avoid some losses that might have happened in that week. The outlook for the next few months is not particularly rosy

[The Leaper]

So, where will the money be during the week it is not invested? That's what I'd ask as a starting point if you want to make an issue of this.

R.

[55palfers]

You may also miss some market losses.

Flip a coin?

[Simpo Two]

I'd say it's 50:50 depending on which week it happens. If I'd made my last investment a week later I'd be better off now. So yep, heads or tails?

[ellroy]

Nothing much you can do, largely speaking if you’re transferring between the same assets the relative position will be largely similar. Sell low, buy low, sell high, buy high.

There’ll be a small price difference in reality and 50/50 if you come out ahead or behind. Look back in 12/18 months and you’ll never notice.

[LeoSayer]

The Leaper said:

So, where will the money be during the week it is not invested? That's what I'd ask as a starting point if you want to make an issue of this.

R.

It will effectively be sitting in cash awaiting settlement of the sale and then transfer between the pension administrators.

Looks like I'll just have to accept it.

[randlemarcus]

LeoSayer said:

It will effectively be sitting in cash awaiting settlement of the sale and then transfer between the pension administrators.

Looks like I'll just have to accept it.

Would you be happy returning any gains you might have had, if the market gets a shiver in the meantime? I.e fund sells at 30, you buy back a week later at 28? As posters above have said, its a coin toss which way it goes, and the net effect is trivial.