Scottish Widows Pension Plan (Pension Investment Approaches)

Stoke

My company have just switched to Scottish Widows Group Pension PLan. Truthfully, this isn't my domain whatsoever, but having filled in the form. The last question is Pension Investment Approaches.

Honestly, I Have no clue.... and having Googled, I have even less of a clue. There are 18 choices. Now I've written 9 of those off because they are premier plans and cost to maintain.

The risk profiles are Adventurous, Balanced and Cautious.

The three approaches are Targeting Annuity, Targeting Encashment and Targeting Flexible Access.

Ultimately, I have no idea. I asked my business what their contribution will be invested as, and that is Balanced targeting flexible access.

Absolutely no idea. help

dunstonh

Now I've written 9 of those off because they are premier plans and cost to maintain.

All options cost. Its a case of which offers the best potential vs the level of cost and is appropriate for your risk profile, knowledge, understanding, behaviour and capacity for loss.

The three approaches are Targeting Annuity, Targeting Encashment and Targeting Flexible Access.

Ultimately, I have no idea. I asked my business what their contribution will be invested as, and that is Balanced targeting flexible access.

The encashment option is unlikely unless its trivial amounts. The annuity option is now the minority option. The flexi access option is now the main one. Would you be looking to buy an annuity in retirement (Secure income) or remain invested for life with a flexible income?

blisteringblue

Similar scheme I have with my work pension and our scheme has just changed to allow flexible acess, used to be annuity only. This is a recent option.

If you want some reference since 2011 my pot has risen 57% (minus fees and contributions) and I moved from Adventurous to Balanced in 2015. I check monthly and record the figures. You can pick more specialist funds rather than their generic three, but there are extra costs levied on these I think.

I am not market savvy so stick with the generics.

Stoke

dunstonh wrote: »

All options cost. Its a case of which offers the best potential vs the level of cost and is appropriate for your risk profile, knowledge, understanding, behaviour and capacity for loss.



The encashment option is unlikely unless its trivial amounts. The annuity option is now the minority option. The flexi access option is now the main one. Would you be looking to buy an annuity in retirement (Secure income) or remain invested for life with a flexible income?

I have absolutely no idea. Truth be told, I'm 27 and while I'd considering myself a clever enough guy, this is just beyond my knowledge. I probably need to read up, but I only have until the end of today to make a choice.

I'm hanging away from Cautious as I'm aware that it will potentially lose value due to inflation. So I am thinking Balanced Flexible Access or Adventurous?

Stoke

Bump. I hate bumping but there's a short deadline on this.

blisteringblue

Stoke wrote: »

I have absolutely no idea. Truth be told, I'm 27 and while I'd considering myself a clever enough guy, this is just beyond my knowledge. I probably need to read up, but I only have until the end of today to make a choice.

I'm hanging away from Cautious as I'm aware that it will potentially lose value due to inflation. So I am thinking Balanced Flexible Access or Adventurous?

Just pick one, you can change online quite easily at anytime. You are not choosing for it's lifetime.

Stoke

blisteringblue wrote: »

Just pick one, you can change online quite easily at anytime. You are not choosing for it's lifetime.

I'm going to go adventurous as that's what the Guardian told me to do.






(#SaidNobodyEver )

Malthusian

Balanced and Targeting Flexible Access.

That is very unlikely to turn out to be a horrible decision, as long as you read up on how the scheme works at some point in the next 10 years.

Adventurous and Targeting Flexible Access would be a better choice (as you should get higher returns in exchange for worse falls during stockmarket crashes, and the falls should be almost irrelevant with a minimum thirty-year investment timeframe). But as I don't know your risk profile, it would be reckless of me to tell you that.

As Blisteringblue says you can always change it.

Stoke

I've gone Adventurous Targeting Flexible.

ex-pat_scot

Stoke wrote: »

I've gone Adventurous Targeting Flexible.

That would be my choice, but I don;t know your attitude to risk, amounts, other provision, income etc.

Stoke

ex-pat_scot wrote: »

That would be my choice, but I don;t know your attitude to risk, amounts, other provision, income etc.

Well obviously I'm earning a decent enough wage, and hope to be mortgage free by that point.

That's the dream..........

Now reality :rotfl: