L&G Target Date Funds

Notfarfromtheborder

Hi. My current workplace pension fund (bespoke to Employer) with L&G will be closing and the suggested default position is that L&G will move the funds to a Target date fund, presumably one that ties in with my declared retirement date.

From what I can gather these funds are just lifestyle funds that reduce risk over time.

My projected retirement date with L&G is 5 years from now, aged 59, however, I may go sooner.

Current pension value is £490K, the one that is closing has just over £50K with the rest in old employer schemes with target retirement dates set at age 67 so these will not be lifestyling yet.

No mortgage or cash savings to speak of. Mortgage facility is available if needed for short term cash needs should this be necessary. Contributing £20K PA to pension at present through Sal sac

Through good or bad management on my part over the past thirty years I have analyzed my current funds with another 5 providers as follows

23% UK Equities
22% US Equities
10% International Equities
9% Pacific Equities
4% Japan Equities
4% EU Equities
14% Fixed Interest
4% Other
3% Gilts
3% Property
3% Money Market
1% Cash

72/28 equity split. Current fund that is closing is in lower risk 

Is now the time to move into some less racy funds with retirement just around the corner and transfer some other funds to L&G target date funds?  I would need to transfer old funds to a drawdown provider at some point as only L&G offer this within current providers.

How comfortable would you be with a higher % of fixed income at present?

Of course I could choose other L&G funds?

Aim for drawdown fund would be pretty aggressive drawdown from age 57 ish to SPA when db kicks in as well.

DB, me £8K from 65, OH £16K from 55 and SP x 2 will give joint £44K pa at state pension age

What would you?

Thanks for reading

Albermarle

Firstly by having a relatively high % equity you have missed most of the issues with fixed interest/bonds/gilts, which have suffered badly since interest rates started to rise. Now this seems to have played itself out it could be quite good timing to rebalance your portfolio to be a little less 'racy'. You could do this yourself, without necessarily just being in lifestyle funds.
Geographically your UK % is on the higher side and your US and EU % are on the lower side ( opinions on this will differ). Not sure what 'International equities' are.
When you get nearer to taking the pensions, you probably want to look at converting some to cash, especially if markets are doing OK. Then when you actually need the money it is there and you will not be forced to sell investments if there is a downturn.

with the rest in old employer schemes with target retirement dates set at age 67 so these will not be lifestyling yet.

Are you sure they are all in lifestyling type funds, not all employer schemes will be?

LHW99

target retirement dates set at age 67 so these will not be lifestyling yet

Worth checking, as some (particularly older ones) begin 10 or even 15 years before specified retirement age.