Can you change what your funds are invested in half way through your pension?

mr_fishbulb

Hi all,

I've been reading Martin's article about pension. I'm going to have to start doing one - I'm nearly 26. Probably going to be a stakeholder one.

Looking at Martin's article, as I am younger it might be worth picking a plan that invests some in a higher risk market. But can I change that in a few years time to a lower risk?

For example (and this is only an example so please don't say 'oh you shouldn't be investing in that'). If I started a stakeholder now and some of my funds got invested in Indian funds and over the next 10 years they icreased a lot, I'd be very happy. But after 10 years India started to do badly but Africa was taking off, could I get rid of all my Indian investments and split the money from that between African investments (high risk) and something else lower risk?

Also when you make a monthly contribution (say I wanted 50% in Market A and 50% in Market would anyone actually check it? Would there be someone looking and saying "It's not a good time to invest in Market A at the moment, I'd sugest investing 75% in Market B and 25% in market C this month"?

Cheers.

EdInvestor

mr_fishbulb wrote:

.. it might be worth picking a plan that invests some in a higher risk market. But can I change that in a few years time to a lower risk?

Sure you can moving from one fund to another is called "switching". Usually you will be allowed a few switches free every year - after which there might be a small charge for extra ones. Some pensions allow unlimited free switches.

, could I get rid of all my Indian investments and split the money from that between African investments (high risk) and something else lower risk?

Certainly.And equally if you had a great deal of your pension money invested in say the London stock market and it crashed very seriously (as it did in 2001-02), you could switch that money into cash, so you didnt lose your gains. That's what investing is all about. [Not that we are expecting a serious market crash any time soon in the UK I hasten to add, it's only just now recovering from the last one.]

Also when you make a monthly contribution (say I wanted 50% in Market A and 50% in Market would anyone actually check it? Would there be someone looking and saying "It's not a good time to invest in Market A at the moment, I'd sugest investing 75% in Market B and 25% in market C this month"?

Only if you had an advisor (an IFA) and you would have to pay him to tell you what he thought you should do. Nobody at the pension company will be checking what you do.

mr_fishbulb

Thank you very much EdInvestor

Pal

Switching funds within a stakeholder pension policy is free, irrespective of how often you switch.


Just because we have "just had" a stock market crash, does not mean that we cannot have another one. A stock market crash is, of course, an investment opportunity.