Aviva pension

Nurse2047

Hello
i have been doing extra shifts during the pandemic for another employer in NHS and they are paying pension contributions into Aviva. They have set up Future Growth fund- https://www.fundslibrary.co.uk/ I would like to switch to a higher risk however there are so many options- I know you can’t advise however any tips be greatly accepted. 

I’m 41 so another 20 years to work and this is a extra pension put to normal full time job. 

TVAS

Are you an exceptional customer because in my opinion only exceptional customers can take high risk.

An exceptional customer is someone who earns more than 100k, well educated, in a senior role, senior manager/director level, or business owner such as a person who owns several car dealership and uses professional advisers.

Substantial non pension assets i.e. high house value, low mortgage, S&S ISA portfolio investing over at least the last 10 years if not longer, other equity based assets.

Understand of taking risk.

Medium Risk Funds vary within risk between these funds so the higher the S&S element within the fund the higher the risk. You will find some have 20% stocks and shares and others have as much as 80% stocks and shares.

You have time to ride the fluctuations of the stock market. You have to ask yourself 2 questions.

1. How would you feel if there was a huge collapse of the stock market? Would you switch to a cash fund or would you ride out the collapse hoping for recovery? Those who do the former should not be invested in equity based products.

2. If it all tits up with your high risk strategy meaning when you want to claim those benefits very little is available, will you starve or do you have other assets you can rely on as income in retirement.

JohnWinder

Without looking at the options: broadly diversified, low cost, tracking a good equity index(es), if there are such beasts there.

Notepad_Phil

MFW2026 said:

Hello
i have been doing extra shifts during the pandemic for another employer in NHS and they are paying pension contributions into Aviva. They have set up Future Growth fund- https://www.fundslibrary.co.uk/ I would like to switch to a higher risk however there are so many options- I know you can’t advise however any tips be greatly accepted. 

I’m 41 so another 20 years to work and this is a extra pension put to normal full time job. 

If I've got the right fund then the Future Growth fund would appear to be 70% international equities and 7% UK equities so it's fairly high risk already, but if you wanted to go higher then you could think perhaps of looking at some of the blackrock index funds.

However are you 100% sure that you have the risk tolerance for high equity percentages in your pension? Personally with 20 years to go I'd be going 100% equities, but I know my risk tolerance and have been through many market ups and downs.

Nurse2047

Thankyou I will look at these today you have been very helpful @Notepad_Phil

IvanOpinion

I have no idea which funds are available to you but if it is like my own there are some decent alternative funds available that give better return.  A few years back, when I started paying attention to what funds I was in, I realised that I was in the 'safe' option - a very average fund.  I looked at what was available and moved to a selection of different funds.  My choices included Bailie Gifford Managed (a mixed asset fund that is giving better returns than the generic one I was in) and a higher risk Baillie Gifford International (which is 100% equities) plus a couple of others - all of which I see in the link to your list.  That pension is doing much better now (I still track it against the generic mixed asset fund I was in.

Looking through your list you have a much better range of funds than I have access too - I am a bit jealous of some of those you have access to.

Look online for some risk assessment questionnaires and then look at what funds are available to you within your chosen risk category. Wish I had 20 years to go, but if I did I would definitely be mostly in equities.  If the market falls, consider it a buy opportunity.  Then reasses when you have 5-10 years to retirement.

JohnWinder

IvanOpinion said:

I have no idea which funds are available to you but if it is like my own there are some decent alternative funds available that give better return.

That could work out. Just be a bit careful of the risk involved with the 'decent alternative funds' that give better returns. It's easy to get somewhat better returns by taking a lot more risk. You don't notice the risk if the better returns materialise; but you'd kick yourself if the investment went bad and you then discovered that it was taking a lot more risk for the promise of somewhat better returns. It's risk-adjusted returns you need concern yourself with.