Private pension pot

Sarahspangles

Cobbler_tone said:

Looking for a thread to tag this question on.
My workplace DC has grown 7.35% since April 2021 (the start date) is this typical or would I be better off looking at any of the 47 alternative funds available? It could be a bit of a challenge trying to pick the bones out of them all. It's with L&G which I don't get a choice on.

L&G are the provider but the fund will be based on your choice (sticking with the default also counts as a choice).

I still track my former L&G fund’s performance in the Trustnet site. The fund was the default fund recommended when I was set up with the pension by a former employer. I can click on it in the Trustnet website and identify it’s from a sector called “PN Mixed Investment 40-85% Shares” and see that there are 700-odd other funds with the same characteristics. I can then see where my fund ranks in terms of return over different timescales. It’s in the top half of the table.

But what does that actually tell me? The differences are marginal compared to the differences if I chose to compare with a fund from a sector with a more risky/volatile profile. This is why there is so much emphasis on risk appetite.

I currently have some of my pension pot in risky funds, but my first year’s pension is in a relatively safe money market fund. I need that money to be there, and I’m able to accept some riskier choices with the funds that will provide money to top up my DB pension for ‘nice to haves’. You need to know what you’re trying to achieve, and how comfortable you are with risk.

MeteredOut

Cobbler_tone said:

Looking for a thread to tag this question on.
My workplace DC has grown 7.35% since April 2021 (the start date) is this typical or would I be better off looking at any of the 47 alternative funds available? It could be a bit of a challenge trying to pick the bones out of them all. It's with L&G which I don't get a choice on.

Why not start a new thread?

But it being with L&G is not what is is driving the growth, its the fund you've selected (or, based on your question, its most likely the default fund for your employer).

No-one here will be able to advise you on selecting a different fund that might be better for your personal circumstances, but if you share more, they might be able to give you pointers as to how to make that decision. One of those might be to go see an IFA.

Cobbler_tone

Fund performance, as expected it has picked up:

https://ibb.co/S5GykNy

I have an appointment with Pension Wise next week on my overall DB/DC strategy and more to understand the various options and timings.

In terms of other choices, I certainly wouldn't be moving away from the default without professional advice and they choose the plan based on the retirement age you set.

SpeedSouth

Cobbler_tone said:

Looking for a thread to tag this question on.
My workplace DC has grown 7.35% since April 2021 (the start date) is this typical or would I be better off looking at any of the 47 alternative funds available? It could be a bit of a challenge trying to pick the bones out of them all. It's with L&G which I don't get a choice on.

You'll probably find you are in one of their targeted funds, and it will depend on how close to retirement you are as to how equity heavy it is.

The default fund I was put into has not grown as much as the one I since moved it to.  I'm a way off retirement so did go for a larger equity, more volatile/riskier fund though.

jimjames

Bolt1234 said:

I'm horrified that inheritance tax will apply to pensions. How is this meant to work within married couples?

Why horrified? It seems an entirely logical action to close off a loophole that was being used to avoid IHT. Even the Telegraph had their featured hard-done-by person stating they were paying into their pension to avoid IHT so hardly surprising it is now being tackled when pensions are essentially unlimited now the cap is gone. Pensions are meant for retirement, bonus if anything left for passing on to kids but historically that was never the point of them especially when they were mainly DB schemes.