Funds to have at retirement

hesitant

Hi All,

I have worked for my current employer since 1990 and have always contributed to the work DC pension scheme. In 2005 my employer decided to change pension scheme - something to do with the old scheme being 'with profits' and the new scheme having more transparent charges. An IFA was employed to interview each of us - we had the choice of keeping accumulated funds in the old scheme and investing in the new fund going forward or transferring all the funds from the old scheme into the new - I think just about all employees simply transferred funds to the new scheme.


Whilst the IFA was interviewing me, I mentioned that I was a single person with no dependents and was interested in upping my risk profile in the hope of better returns. A week or so later, an envelope arrived with their recommendations. The generic old fund was transfered to the new scheme, but going forward the advice was:-

Ethical B Fund - 45% of contributions [current value £21017]

Property - 35% of contributions [current value £11627]

Long Corperate Bonds - 20% of contribution [current value £8511]

The generic fund - SE Cautious 2019 was just left to grow and is now worth £67487.

I have about 100k in s&s ISA's/SIPP, all invested with Vanguard LS60.thanks to the Monevator site and this forum.

I will probably retire within the next 12 months and will take some form of drawdown [SPA 2020] So, the contradiction I have is all my work pension seems to be invested heavily in the UK and my s&s ISA's/SIPP in world tracker funds. I would like to hear your thoughts whether I should move the pension funds into something similar to Vanguard LS60 or stick with what I have.

Thanks in advance. Hesitant

atush

I have to say that portfoiio looks lower risk than you asked for?

El_Torro

Between the two choices (going with how your pension is currently invested or moving it all to VLS60) I would go with the VLS60 option. The VLS60 fund at least has a chance to grow faster than inflation.

If you do have all your retirement funds in VLS60 (or a similar global multi asset fund) I would make sure that you also have a good cash buffer, 3 or so years worth of spending. That way you won't need to sell shares during a stock market downturn.