Rebalancing DC pension portfolio away from bonds

Fall

@bostonerimus the only reason for the current allocation is because that is the default.  I wouldn't have chosen this mix of bonds and equities myself - in fact my Lifetime ISA and S&S ISAs look nothing like this.  The reason for changing now is that I have reviewed the pension investments which previously weren't clear to me.

leosayer

If your asset allocation is wrong then get it fixed straight away. 

It takes a strong mindset to 'lock in' the bond losses of 2022 but this is exactly the kind of strength you'll need to survive the volatility of equity markets over the next 20 years. For example, we could have a covid resurgence causing an equity market crash and bond rally. If you're not comfortable with that risk then keep a larger proportion in bonds.

However whatever happens / happened with markets in the 2020s will seem like a distant memory in the 2040s. 

Bostonerimus1

Fall said:

@bostonerimus the only reason for the current allocation is because that is the default.  I wouldn't have chosen this mix of bonds and equities myself - in fact my Lifetime ISA and S&S ISAs look nothing like this.  The reason for changing now is that I have reviewed the pension investments which previously weren't clear to me.

OK that's good. You need to go into this understanding why you are doing it. Now think about what happens when equities fall by 20%, as they did recently. What will you do? 

At your age with maybe 25 years until retirement and probably another 20 years after that many people should have the  majority of their invested money in equities. But they are volatile and if they go down you need to be prepared and not panic. So think about rebalancing strategies and also about how you will generate retirement income when you need it.