Pension fund advice sought

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
1 reply 638 views
M00NST0NEM00NST0NE Forumite
36 Posts
Part of the Furniture 10 Posts
I have an Assured Pension Fund with Norwich Union and I am about to retire. I am planning to defer my pension for another 5 years. Norwich Union have told me that if I defer I must switch from the Pension Assured Fund into one of their other funds.

I'm not sure which fund to choose to switch to (there seem to be so many) - preferably the one that is likely to give me the best growth over the next 5 years. Anyone got a crystal ball?

Any advice would be appreciated.


  • Myrmidon_JMyrmidon_J Forumite
    287 Posts
    Anyone in possession of a crystal ball is likely to be an extremely wealthy individual.

    Alas: I am not extremely wealthy!

    It is forbidden to offer "advice" on this forum (and with good reason); however, I would suggest that you at least consider the following.

    Investing for growth - i.e. investing in 'real assets' - generally requires that you adopt at least a five year rolling timescale. If you had chosen to invest on this basis for five years only, four years ago, you might have seen your pension fund fall in value by as much as 40% in the last year.

    Obviously, this would have a significant effect on the level of income you might enjoy in retirement.

    Whilst it is unlikely (in my personal opinion) that equities, as an asset class, will lose another 40% in this time period, it is by no means impossible.

    In your position, I would choose very limited exposure to 'growth assets', make full use of any tax relief on additional personal / employer contributions and plan for a realistic level of income in retirement, given the current size of your pension pot.

    In terms of advice, I recommend that you at least consult an indepent professional.
    For the avoidance of doubt: I work for an IFA.
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