The LTA amount will always remain largely the same, I believe it increases yearly by a small amount equivalent to inflation.
The money that was withdrawn and reinvested in a sipp will go up and down with the markets. Certainly in the last few months this will have been dramatic, I know mine has scared me!
Its all relative though. I heard stories of some ATCOs cashing in their pot with upwards of £1.5mill, a fall of 130 thousand on this amount is less than 10%, probably par for the course with any personal pension at the minute. However someone losing £130 thousand is not leaving them destitute if they have started with a huge amount. Plus a savvy financial advisor will be buying in again at a much lower cost thereby hopefully recouping the losses. The small print is always there though, the value of your investment may go down as well as up and you are not guaranteed to get your original amount back - or words to that effect!
