How can I stop my pension company losing my money?

leosayer

Veteransaver said:

Nelson1100 said:

Its a legal and general workplace pension. Looking at the paperwork I have 2 funds L&G PMC Fixed interest 3 (which is -14.76%) and L&G PMC Cash (which is at 6.41%)

But my general question has been answered in as much as it looks like there's nothing I can do to stop them losing my money other than just cashing out. 

Did you choose those investments? I find it hard to believe that a workplace pension scheme would have invested in those 2 funds by default unless maybe if it's part of a very risk averse lifestyling as you approach retirement, but if you didn't opt for them then those choices do seem questionable and you have valid questions to ask the pension manager
Not so much the cash fund choice, but the fixed interest one looks a particularly awful choice

I agree - according to the fact sheet linked below, the fixed interest fund currently has a risk/reward rating of 4 out of 7 so it's no surprise to see losses of over 10% or even over 30% in some circumstances ie. similar volatility to equities. One particular disclosure stands out:
 "The fund should be utilised as part of a diversified investment strategy within a wider portfolio of funds. These funds are not designed to be solely invested in.".

By contrast, the cash fund has a rating of 1.

https://fundcentres.lgim.com/srp/lit/Xl9BVg/Fact-Sheet_UK-Fixed-Interest-All-Stocks-Fund-LG-PMC-Fixed-Interest-Fund-3_31-01-2024_UK-WPEmployer_UK-WPEmployee_UK-WPAdviser.pdf

If I was the OP I would be finding out what gave rise to this fund selection.

dunstonh

If I was the OP I would be finding out what gave rise to this fund selection.

As mentioned a couple of times earlier in the thread, the suspicion is lifestyling for annuity given the OP's age.

leosayer

dunstonh said:

If I was the OP I would be finding out what gave rise to this fund selection.

As mentioned a couple of times earlier in the thread, the suspicion is lifestyling for annuity given the OP's age.

I think it's worth confirming this. My own DC scheme provides annuity-target funds but these contain index-linked gilts which this fund doesn't seem to have.

dunstonh

leosayer said:

dunstonh said:

If I was the OP I would be finding out what gave rise to this fund selection.

As mentioned a couple of times earlier in the thread, the suspicion is lifestyling for annuity given the OP's age.

I think it's worth confirming this. My own DC scheme provides annuity-target funds but these contain index-linked gilts which this fund doesn't seem to have.

It varies with providers/plans. ILG's are more volatile and less attuned to annuity rates.  So, they don't particularly make a good risk reduction that fits in with annuities.  A little bit in the overall weightings but you wouldn't want it too heavy.