Will the stock market stay high for my SERPS

benny5

I opted out of SERPS for a number of years from the 80's to late 90's with HSBC as the provider.

Over recent years the fund (balanced option) has performed pretty well and now stands at £32k. My dilemma, with some 3 years (my current plan) and possibly 8 years (@65) from retirement, do I switch to a more cautious option.

My concern is that should the stock market fall back there may not be sufficient time to recover any losses.

Any views welcomed.

Regards

Benny

dunstonh

You should reduce your risk as you get closer due to lack of time to recover if things do drop. That doesnt mean you go to zero risk but phase downwards. Typically you would start doing this 5 years before your selected date.

purch

Anthony Boltons recent remarks appear to have 'spooked' a few people.....but personally I don't see what the fuss is all about......if he was 'that good' his Special Situations fund would rank higher than #32 over the last 3 years.

dunstonh ( as always ) is perfectly correct though...a more Cautious profile would be wise as the market could be in line for a corrective phase

EdInvestor

It depends - are you planning to buy an annuity when you retire?In which case caution is indicated.If however you plan to continue taking an income from a drawdown fund, you will want continued exposure to risk assets - but perhaps choosing funds orientated to providing an income rather than capital growth.These funds tend to be less risky anyway, though they would still include investments in the stockmarket.

benny5

A massive 'thank you' to all who take the time to reply to requests such as mine.

The general feedback tends to support the direction I was heading, that of introducing some caution at this stage. My plan is to utilise the fund to purchase an annuity at some point, 3 to 5 years hence, depending on the prevailing rates.

Once again thanks to all.

Kind regards


Benny.