Head spinning pickle

Fridgefreezercupboard

I have checked the L&G pension and cannot see what the target "pathway" fund is actually invested in.
There is a management charge of just under 2% taken each month on the contribution and an additional fund management charge of 0.15% as it is an actively managed fund.  
The annual percentage growth of the fund looks to be 4% a year, according to the factsheet and is currently in the steady growth phase and will be for the next 7 years.
Excitingly, there are a further 32 L&G funds available for me to split my investment across, which I will examine further
I thought I only had one fund choice because of workplace AVC form. 
Disappointingly my employer is not getting me extra units as far as I can tell.

AlanP_2

You could ask L&G whether you can do a partial transfer out to another provider (a SIPP) where you would have access toa wider range of options and probabaly lowr charges.

Voyager2002

DiggerUK said:

....."Biggest monthly outgoing is my mortgage (£840/mth). It will run ‘til I’m 61 unless I make overpayments. Current interest rate 1.9%. Remortgage next summer, likely to be same rate or lower. LTV is now 39%."......

£840 a month. LTV 39%. Paying till 61. Remortgage on the way.
I repeat that information to make you focus. Most of this £42k you currently find yourself with seems to be a surprise bonus which you can put towards the mortgage, or retirement funds. The mortgage involves no risk, the SIPP and the S&S ISA do.

The mortgage interest rate of 1.9% is low: it is reasonable to expect that a diversified equity investment made over a seven-year period will give a return (significantly) higher than this. Obviously there is a degree of risk in this, so the advice to the OP depends on his tolerance for risk.

DiggerUK

...."Obviously there is a degree of risk in this, so the advice to the OP depends on his tolerance for risk"

Every time I see the "tolerance for risk" recitation , it reminds me of the 'wisdom' displayed when told that, I don't know what I don't know. 

There is a risk to equities in the same way there is a risk with gambling, albeit to a different level. I would feel it of little assistance to a gambler with a problem, to be asked if they had considered reassessing  their risk tolerance when undergoing counselling.

The 'risk tolerance' mantra is spin emanating from the usual suspects, when a level headed decision needs to be taken as to what is the best way to proceed given current conditions, as opposed to some formulaic legend.

It is also the case that risk is not one and the same thing....i.e., ask ten usual suspects for a definition of risk and you will be lucky to get less than a dozen answers..._

Fridgefreezercupboard

Further thoughts
Tolerance to risk....I know that the values of shares go up and down, I certainly wouldn't pull out of an investment if I saw things drop. I'd be able to sleep.
I am interested in passive investing outwith L&G tho on further reading it's not as if they are terrible fund managers.
I agree with @Voyager2 that a balanced (eggs in different baskets) investment should be expected to return more than 1.9% over a 7 year period.
I hear @DiggerUK on reducing mortgage is sensible. I never thought I would still have one at this age but a change in circumstance means I am where I am.
I now think I need to think and create a retirement plan/goal (how did that creep up on me!), going to find someone to talk with.
Worried that there is no time left to grow funds! 

Aceace

Fridgefreezercupboard said:

Further thoughts
Tolerance to risk....I know that the values of shares go up and down, I certainly wouldn't pull out of an investment if I saw things drop. I'd be able to sleep.
I am interested in passive investing outwith L&G tho on further reading it's not as if they are terrible fund managers.
I agree with @Voyager2 that a balanced (eggs in different baskets) investment should be expected to return more than 1.9% over a 7 year period.
I hear @DiggerUK on reducing mortgage is sensible. I never thought I would still have one at this age but a change in circumstance means I am where I am.
I now think I need to think and create a retirement plan/goal (how did that creep up on me!), going to find someone to talk with.
Worried that there is no time left to grow funds! 

It's occurred to me that if I were in your position I would go with @Voyager2002 and invest. However, in my position of having paid off my mortgage, I wouldn't be prepared to gear up and take out a new mortgage to invest. Crazy really, as it amounts to the same thing!!!