Work scheme performing poorly

Vasquez65

My employer’s group pension scheme is with Aegon,  it’s the Cautious lifestyle fund 🙄 and is making no money,  my pot is worth slightly less than the £15k  I (and my employer)  have paid in over 3 years.  A total of 10% of my £53k  salary goes in.  I was going to up my contributions to 8%, so 16% total  but now I’m not so sure.  I’m hoping to retire in 8 years at 63. 

I know I’ll be getting an extra £1500 or so ‘free employer money’  going in yearly but don’t know whether to just put my planned extra 3% into my SIPP instead?   It’s currently at £90k and split between Vanguard LS 80 , Scottish mortgage trust and  Fundsmith.  

OldMusicGuy

So why not change employer's pension fund from Cautious? Most schemes offer some degree of fund choice.

Albermarle

You should have the ability to change the fund within the Aegon pension . That would seem a better option than throwing away free money from your employer . It seems inconsistent that you have a cautious fund in your workplace pension but a relatively high risk portfolio in your SIPP.
Also many traditional pension funds have not done well this year because they are often have a large UK % ,and UK markets have not done well this year. That may or may not continue .

Anonymous101

Surely the "Cautious" fund can't be the only one that's offered?
I had an Aegon scheme until recently and there was lots of choice. The default may depend on your age and forecast retirement age but you can usually choose not to go with the default.

Langtang

Vasquez65 said:

My employer’s group pension scheme is with Aegon,  it’s the Cautious lifestyle fund 🙄 and is making no money...

I would be interested in whatever you find out, as this is the fund that my workplace pension is invested in also. Not sure whether it would be your employer or Aegon that you’d have to speak to.
This seems to be where the fund invests at present...

caeler

I suspect you can move your investment to other options but if you are in the default fund you are likely now in your glide path to retirement so aegon will be de risking your pot. 

Albermarle

Langtang said:

Vasquez65 said:

My employer’s group pension scheme is with Aegon,  it’s the Cautious lifestyle fund 🙄 and is making no money...

I would be interested in whatever you find out, as this is the fund that my workplace pension is invested in also. Not sure whether it would be your employer or Aegon that you’d have to speak to.
This seems to be where the fund invests at present...

It is Aegon you need to contact regarding changing your investment choices . You  should normally have direct access to the pension on line , or by telephone if you prefer . 
The above fund is low/medium risk with approx. 45% equity . Typical for someone older/nearing retirement .
As mentioned in a previous post the high UK weighting ( and low US weighting) will have dragged down its performance recently.

Prism

Aegon offers other funds in its workplace pension scheme. My sister's pension is invested in Fundsmith (on the Aegon platform) amongst others.

dunstonh

  it’s the Cautious lifestyle fund 🙄 and is making no money,

That is not accurate.  What are you looking at to make you think that?

The returns are consistent with expectation fo the asset make up and the risk level. and the basic structure.   

 It’s currently at £90k and split between Vanguard LS 80 , Scottish mortgage trust and  Fundsmith.  

So,  your workplace pension is invested defensively but your SIPP is invested in very high risk investments.    Why such a difference?

The Aegon pension scheme has multiple funds. If you don't like what you are in then change the fund(s).  

Vasquez65

Thanks.  I’ve now realised that the pension is under the Scottish equitable umbrella and not the retiready one where it was showing but I wasn’t able to access.  I can indeed change my funds so have actioned a request,  half my pot and future contributions to Baillie Gifford Balanced and the other half split between Fundsmith and BG International growth