Phased approach or just stay middling

sgx2000

Opinions please

I am 62 

Just looked at my Aviva pension and they have moved me to a phased approach fund for approx 50% of my pension...

Given the really poor returns on pensions... Would I be better to move it back to a middling risk pension?

And  If my pension is moved to a phased fund as I approach SPA,  what would they likely suggest for the fund after retirement....

Seems a bit strange to move the fund to a safer option just before retirement, then move it back to a middling risk drawdown fund during retirement???

dunstonh

Given the really poor returns on pensions.

Pensions do not have returns.   They have investments in them and its the investments that give the returns.   
Returns have not been really poor in most investment areas.

 Would I be better to move it back to a middling risk pension?

You should invest in line with your attitude to risk, capacity for loss and timescale before you need to draw the money out.

So, if medium risk suits you then yes.  If not, then no.

And  If my pension is moved to a phased fund as I approach SPA,  what would they likely suggest for the fund after retirement....

They won't suggest anything. They will have a list of pathway options you can use or you can overule them or go with what your adviser recommends, if you have one.

Seems a bit strange to move the fund to a safer option just before retirement, then move it back to a middling risk drawdown fund during retirement???

They don't know your plans.  The default lifestyling option may be historic for when annuities were the majority option or it could a be workplace scheme that is mostly made up of small funds where the majority will take the lump sum in full.   

If the default does not match your objective, then change it.

Albermarle

sgx2000 said:

Opinions please

I am 62 

Just looked at my Aviva pension and they have moved me to a phased approach fund for approx 50% of my pension...
So in simple terms, lets say % of equities, what was it before, and what is it now that 50% is in a 'phased approach fund'? 

Given the really poor returns on pensions...Not sure where you get this idea from ? Would I be better to move it back to a middling risk pension? What would you call middling risk ( means different things to different people) again in simple terms like % equity? 

And  If my pension is moved to a phased fund as I approach SPA,  what would they likely suggest for the fund after retirement....

Seems a bit strange to move the fund to a safer option just before retirement, then move it back to a middling risk drawdown fund during retirement??? I presume if you move to drawdown you will be able to choose how you want it invested ?

I think you need to be a bit clearer with the details , see questions/comments in bold.

However you are right to start looking into this, as these lifestyle/phased approach strategies are a bit one size fits all, and often not suitable for the individual.
Some are geared towards the client taking an annuity, when that may well not be their plan at all, so in this case they are totally unsuitable.