Vanguard Lifestrategy 80/20 for private pension?

Rt90

Hello all.
 I’d like to hear anyone’s view on whether the Lifestrategy 80/20 would be a reasonable choice as my single fund for a private pension or if there is a much better option.
 I’m 42 and have been paying anything extra I have available into my workplace pension (Scottish Widows pens portfolio two). Charges for this are fairly minimal but Vanguard do still better them.
 I’m just looking for a simple globally diverse fund really.
 Many thanks to all who respond. 

HCIMbtw

Depends on your risk tolerance, me personally I wouldn't, because of the 20% bond allocation

But most investments look like trash at the moment 

I put a SIPP payments into vanguards FTSE global all cap index fund last year, 6% down on it so far, will need to make another this year and will do the same again.. it's a global index, it's cheap, I've well over a decade until retirement.. I try not overthink it 

Is 80/20 reasonable... sure... I just wouldn't use it because I don't want the bonds, and my work pension is pretty heavy UK exposure already, so rather a bit more global with my SIPP payment 

Rt90

I’m fairly comfortable with the risk. It will be in there a good few years and I need it to grow. I’d probably be more inclined to have less than the 20% bond allocation than more at the moment.

JohnWinder

I’d say it’s reasonable. A lot of people would ‘tweak’ it by adding a bit of this and/or a bit of that fund to satisfy their intellectual urges or values, but there’s no knowing at this stage how either option would turn out.
Get on to portfoliovisualzer site, and see what 80/20 and 70/30 etc have done over past decades; up and downs, biggest losses, nett gains, dealt with inflation etc. One word of caution: the common view now, because of their falls, is that bonds ‘suck’. If this is in your consciousness and nudging you to 90/10, be careful by checking out as much history of returns as you easily can.

Anonymous101

Its certainly not out of the ordinary or something that rings any alarm bells as far as I can see.
Anything from 60/40 to 100/0 would be acceptable IMO.

Albermarle

If your employer operates a salary sacrifice scheme for pension contributions, then you would be better just to increase your workplace contributions.  If they do not operate such a scheme, then it matters less if you contribute more to the SW scheme or a new SIPP.
I think the SW PP2 is rather high on UK exposure, so as another poster mentioned it might be better to have other investment(s) with a low/zero UK exposure to balance it out. You could do this within the SW pension, or in a new pension.
As VLS 80 is quite UK orientated as well, you might want to look for a similar multi asset fund with a lower UK % .
Like HSBC global strategy dynamic, or whatever might be available in the SW pension.

Rt90

If I could put more through salary sacrifice I would but I can only contribute 9% of my basic salary before I hit the minimum wage cut off.
 I’ve thought about the home bias but it’s difficult to know whether it will turn out to be good, bad, or indifferent. I live and work in the U.K. and will probably end up spending it here so I’m not too bothered by it.

Albermarle

 I’ve thought about the home bias but it’s difficult to know whether it will turn out to be good, bad, or indifferent.

You are right , it is difficult to know . However the very high home bias in some traditional pension funds is a bit much.

However now having checked SW PP2 , I can see in fact the home bias is not as high as I thought, and in fact quite similar to the  VLS funds.

Thrugelmir

If you've 20 years or more to retirement. Then you've time to see how the next 5 years pan out. Bonds will become attractive as time passes.