Age 38. Choice of L&G Funds
in Pensions, annuities & retirement planning
10 replies 424 views
Which one should I choose please for pensions
Age 38. Choice of L&G Funds 8 votes
Future world Fund 3
0% 0 votes
Global Equity Market Weights 30:70 Index 3
50% 4 votes
Uk Equity Index 3
12% 1 vote
World (Ex-UK) equity index 3
25% 2 votes
Multi Asset 3
0% 0 votes
North America Equity Index 3
12% 1 vote
Latest MSE News and Guides
Martin and MSE campaign win
April's 20% energy price guarantee hike postponedMSE News
Childcare budget boost
More support for children from nine months and those on Universal CreditMSE News
Energy Price Guarantee calculator
How much you'll likely pay from AprilMSE Tools
23 matching funds
I'd imagine there are probably quite a few lifestyle, annuity, bond and other similar funds listed as well.
I think equity is the way to go as I got about 20 years to ride out any bumps?
100% equities long investment horizon. Once in your 50s starting to think about the deaccumulation asset allocation and the how and when of any changes. After all in long term accumulation many of us are pound cost averaging in every month and view volatility with more enthusiasm than we might later on. Everybody has a different risk appetite. For some 100% equities is just too racy emotionally. You need to be comfortable with materially >50% losses along the way. These days you can look at it. Historically the by the way you have lost half the value as of date x letter was a bit of a shocker.
Of course if you want REITS or a renewables or ethical theme or if there is a commodities item then you can add a tilt or do something around a different core.
You have a couple of simple options for more diversification within equities from EM or Small which don't materially overlap that badly with World ex UK and UK.
A lot of the other choices and slices clearly do. Whether the affect on returns and volatility is helpful or unhelpful in monthly accumulation is a bit of a crapshoot.
I was not a particular fan of the EM indexer in L&G in my own scheme based on monitoring its performance over the years.
When I moved from a UK posture (original default fund) tracking UK FTSE All Share to a more global investment during accumulation it was to an ethical global equities option (FTSE4Good Global/Developed) because this actually tracks the overall global developed markets equities pool fairly closely - given its limited ethical knockouts) and it was the only cheap global passive we had access to.
Some occupational fund rebalancing can be a bit tedious. So a static-ish allocation going in without too many moving parts isn't a bad idea. Opinions vary of course.
I'm not you, but I tell my 38 year old self that a 100% global equities tracker is a good option.
And don't do anything hedged. Or decide based on past-performance.
Shares are always priced at open market value. They don't remember the price they once were, and dutifully return there at some later date.