Scottish Widows in 2012 - which funds/approach?

Hardgr

I am going to join a Group Personal Scheme offered by my employer.

The pension provider is Scottish Widows.

Monthly payments will be around 10%. I have a choice of pretty much any pension funds Scottish Widows offer.

I am considering it to be a long-term investment, so I am looking at moderate to speculative choices.

Should I go for one of three pension investment approaches they offer (Cautious, Balanced, Speculative), or should I be "hands on" and pick the internal/external fund(s) myself (I do not mind being hands on)? Which funds would you recommend? What kind of research can I do to make a choice?

Thank you.

dunstonh

If you are capable of the research and understanding as well as able to give it the time to review and rebalance every year then go with single sector funds and built your own portfolio. If you are not, then go with the portfolio funds.

Realistically, until you start getting to around £10,000, it doesnt make a lot of difference.

Hardgr

I terms of losses, if I would go for speculative approach does it mean that in let's say 30 years time I could loose almost all invested money in worst case?

Sobraon

I have a small PP with SW (and a couple of other products) opened in the early '80s, Fortunately the PP is a very small unit linked policy. The performance of the fund has been such that I cannot recommend SW as a [STRIKE]pension[/STRIKE] investment manager.

The point being that even if you go with one of their "pension investment approaches" (sound very grand doesn't it!) you will have to watch them like a hawk. Hence, if I was starting a policy now I would definitely look to maximise control as you are going to have to spend time monitoring in any case.

dunstonh

I terms of losses, if I would go for speculative approach does it mean that in let's say 30 years time I could loose almost all invested money in worst case?

Speculative should be prepared to lose up to 60% in a given 12 month period. Whether it is next year, 10 years or 30 years doesnt matter.

The performance of the fund has been such that I cannot recommend SW as a pension investment manager.

You have a S226 retirement annuity contract opened 30 years ago. The OP has a modern group personal pension offering multiple funds which has very little in common with what you have.

Sobraon

At the risk of hijacking the thread I have had 2 other SW products taken out when they were a mutual, All three have had dire performance only slightly improved by the demutualisation process. In fact they make my Pearl Assurance fund growth look really good!

Luckily I have less than 5% of my pension pot tied up with SW - but it doesn't stop me wishing I had none with them.

I repeat watch them like a hawk! And, just a further point I no longer communicate with SW by phone it's always by letter - but that's another story.