To SIPP or not to SIPP? That is the question

AlanP_2

Elmer_BeFuddled said:

Here are the current investment plans though I haven't got a clue on how to change anything/change my risk attitude or level!

L&G PMC Cash 3 17.40%
L&G PMC Over 15 Year Gilts Index 3  50.68%
L&G PMC Multi-Asset 3 31.92% The last statement also gives a funds growth assumption (based on 2.5% inflation) of: Cash 3 -1.8% 15 years Gilts -1.8% Multi-Asset 1.0% I find it odd that 2 of the 3 "investment" funds are a negative. Surely they (L&G) should be shifting them into something that gives a positive percentage increase? Looking at previous statements ('18,'19,'20) the top 2 above have been negative. Also have to admit this whole pension/investment malarkey is way over my head!

So 2/3rds of your investments are in options that are forecast to have negative returns and just under a 1/3rd should make 1% - This is why your 2020 balance is lower than 2019 even after contributions.

The contributions will have attracted tax relief and may (if Salary Sacrifice) have attracted NI relief so performance against the net value of the contributions isn't as bad but still poor.

I would suggest you find out what other investment options you have in the workplace scheme as there should be options that re "higher risk" than the current choice which could boost your returns.