Workplace Pension

ryath

Good afternoon,

I have had my workplace pension for 18 months now. It was set up by my employer with Legal & General. Should I change it or leave it as it is?

Multi-Asset (PMC) 3

UNITS
HELD PRICE (P) VALUE (£)
449.871 136.30 £613.17

Annual Fund charge - 0.13%

I am 26 years old.

bigadaj

Keeping things simple most people would say it's too conservative a Fund for you at your age.

If you are very risk averse then it might be ok, but most people would opt for a higher number, maybe a 7 if you are happy to ride things out or a 5 if not.

The principal is that the higher the number the more money you have in shares, which will be more volatile but should give you a better return over the long term. If you check it frequently and would panic if it dropped 10% or more in a few weeks then you're probably in the right option now, if you're happy to see it drop and leave it alone to recover in the mount months and years then a higher option might be best.

It depends on what options you have in your pension, there could be hundreds or thousands and everyone will have a different opinion and preference.

ryath

Hi Bigadaj,

When you say number I take it you mean the number at the end of my investment i.e. 3. I've scrolled through all of the funds available to me on my online account and they all have 3 at the end. Perhaps I need to change my lifestyle profile?

bigadaj

They appear to have a range of funds from 3 to 7. I'd assumed that you'd have these options but it's possible not, the 3 might refer to the overall pension version, I recall they may go from 1 to 4 depending on when the plans were first started.

How many funds are listed, the life styling shouldn't have much effect at your age. You might be best looking fir soemthing with a large equity holding, low bonds and cash, ideally something low cost and self rebalancing.