Spread of investments for a retired person

Primrose

I know this will always depend on personal circumstances but given the current/medium term state of the UK economy would anybody be brave enough to suggest a pie chart with percentages allocated as to how the ideal portfolio should be constructed for a retired person.

Lokolo

Theres a site which does it for you.....

Cannot for the life in me remember who though! I'll try and remember...

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Found it!

https://www.fidelity.co.uk/investor/guidance-planning/plan-portfolio/default.page?smid=fifzz6ea

jon3001

What sort of yield do you expect from your portfolio? 5% is probably the upper limit of sustainability (if you want to keep pace with inflation). If you can cope with a lower yield you can have a less risky portfolio.

Some strategies also make use of selling off capital gains. So you'd have bonds for the markets are doing poorly and sell gains from your small company and emerging market stocks (which produce little income) when the markets are doing well.

Debt_Free_Chick

What income do you need? And how much capital do you have?

How much of your capital do you want to preserve? Or are you happy to run the capital down to "nil" at death?

Primrose

Thanks Lokolo. Had a quick look at that site. It looks interesting and I'm definitely underweight in Bonds, so will have a think about how I possibly callibrate a little over coming months.

gozomark

How old are you ? Retired could mean you are 40 (or less) :-)

Lokolo

gozomark wrote: »

How old are you ? Retired could mean you are 40 (or less) :-)

We're not all Bendix's!

sabretoothtigger

55 is the lowest age a pension can legally pay out now I think, just changed up from 50 so 40 would be too young for actual pension funds to be released


I thought it had to go into annuity and you get some cash payout. I wonder if these annuitys are inflation protected.

You mention bonds, I would take index linked gilts or certificates from the PO which is limited to 15k per person I think. Then you can wonder about investing any excess income or rainy day fund once you know your future is secure

gozomark

sabretoothtigger wrote: »

55 is the lowest age a pension can legally pay out now I think, just changed up from 50 so 40 would be too young for actual pension funds to be released

that may well be true, but the OP could be retiring before being able to release their pension funds :beer:

jem16

sabretoothtigger wrote: »

55 is the lowest age a pension can legally pay out now I think, just changed up from 50 so 40 would be too young for actual pension funds to be released

Until April 6th 2010 it's 50, then it changes to age 55.

I thought it had to go into annuity and you get some cash payout.

You can take 25% tax-free lump sum but the rest can stay invested through income drawdown.

I wonder if these annuitys are inflation protected.

They can be - depends which kind of annuity you choose.

Linton

Primrose wrote: »

I know this will always depend on personal circumstances but given the current/medium term state of the UK economy would anybody be brave enough to suggest a pie chart with percentages allocated as to how the ideal portfolio should be constructed for a retired person.

IMHO it all depends what you want the money for.

Perhaps you want it for income now - there are a wide range of investments that should provide you with a higher return than a building society account.

Perhaps you have sufficient income now and really want it to provide for possible care needs in perhaps 20 years time. This could be an entirely different portfolio than that for income.

For any investment planning I believe the first step is to define a clear simple objective for the investment.