New Job - DC pension investment choices

peterg1965

I am changing careers and starting a new job later this month. My new employer is a FTSE100 Company and I am automatically enrolled in the DC pension scheme. Core contributions are 10% (me - 4% of salary and 6% Company) which starts immediately. I will increase this to the maximum 14% contributions (6% from me) in April 16, the first opportunity I have to do this.

The Company use Standard Life as their provider and I would be automatically invest into the 'Cash Lifestyle Profile', with a declared retirement age of 60, I am now 49. Having read the literature, the profile gradually reduces investment risk in the last 15 years working towards declared retirement age - as you would expect. Having looked carefully I cannot see what precise funds my money will be invested in this 'Cash Lifestyle Profile'.

There is another option, which is to select my choice of funds from the 13 funds available. the funds are:

Standard Life Deposit and Treasury Pension Fund
Standard Life Pension Mixed Bond
Standard Life Pension Property
Standard Life Investments Global Absolute Return Strategies
BlackRock Aquila HP Over 15 year Gilt Index
Standard Life Pension Managed
Standard Life Pension Ethical
Standard Life Investments UK Equity High Income
Standard Life Newton Multi-Asset Growth Pension Fund
Standard Life Pension International
BlackRock Aquila HP Global Equity 50/50
BlackRock Aquila HP UK Equity
HSBC Amanah Global Equity Index Fund

Given that I already will have a significant final salary pension already in payment, and I also have £100K in a SIPP which I am still contributing to (£475/month net), my inclination is to chose my own funds in this occupational DC pension, given that I could probably afford to remain in equities longer than I would if this was my only source of retirement income.


My intent will be to transfer the new DC scheme proceeds into my HL SIPP when I decide to retire. My thoughts are to do this when I have build up enough funds in the DC pension and the SIPP combined which match the remaining amount I have in my Lifetime Allowance (about £400K dependant on what the precise LTA is in about 7-10 years time).

So, hypothetically, if you were in my shoes what funds would you select and what % spread would you go for? I am not looking for advice, just a discussion around options!

kidmugsy

If you think the market a bit risky at the moment, how about GARS? If you don't have any anywhere else, some property? I suppose that you should be looking at the combined portfolio of this pension and your existing SIPP, once this one has grown substantially.

peterg1965

GARS? Is that the Guaranteed Absolute Return Strategy fund?


If so, just had a look at the fund sheet, it seems to be fairly well geographically diversified, and performance has been pretty consistent over the last few years.


My SIPP is pretty well concentrated on UK and US equities and a small percentage of bond tracker and a multi manager European fund.


I have shyed away from specialist and emerging market funds over the last few years.