Alternative funds for workplace defined contribution scheme?

Cobbler_tone

Does anyone have any knowledge or experience with 'messing' with the available (and future) contributions in a workplace DC scheme? I would hazard a guess that the vast majority of members leave their investments in the default fund. In fact, I know a lot of my colleagues can't even access their portal, so they definitely never look at these background screens!

Maybe there is little advantage to do anything with significantly increasing risk.
I've flicked through some, can see varying performances and varying fees, it is anything but 'simple'.

I guess if mine forms a part of an exit plan in 2.5 years time then I shouldn't be doing anything!

Marcon

Your guess is entirely correct! The majority of members are in the default fund and often don't even know they can switch their fund choices.

Without knowing your objectives/risk appetite, not sure what helpful comments anyone can make on that list of funds you've given?

MallyGirl

I have a similar list and I chose to move away from the default - I can't even remember what the default was but I think it had lifestyling and I didn't want that. I chose 2 funds that gave me the overall allocation that I was looking for and I contribute to them automatically in a set split each month. 
You may be only 2.5 years from retiring but, unless you are using the lot for an annuity, then you are going to want those investments to continue for another 30 or so years

Cobbler_tone

Marcon said:

Your guess is entirely correct! The majority of members are in the default fund and often don't even know they can switch their fund choices.

Without knowing your objectives/risk appetite, not sure what helpful comments anyone can make on that list of funds you've given?

Thanks Marcon,

My objective is for them to grow more without losing any of it. 

The investments are up just under 10% since 2021 and (the fund) 23% in 5 years. When I factor in what it has actually cost me net to get the pot I have, then the appetite to chase more maybe isn't there. The actual return as it is phenomenal. 
I do know that my current fund has a low fee of 0.15%.

Think it proves the point that pensions can be as simple or complicated as you want to make them.

Just wanted to check I wasn't missing a 'simple' trick but doesn't sound likely. Maybe something worth reviewing once I stop contributing. Not many people will want to be taking high risk decisions as they approach retirement.
 
I'll probably draw mine down over a few years. 


In payment

MallyGirl

yes that looks vaguely familiar. An already low percentage of equities at 40 something percent then dropping to maybe 10% equities in retirement. That would seem to have a risk of not keeping pace with inflation. 

Bostonerimus1

You should definitely understand why and how your DC pension money is invested and make sure your asset allocation matches your goals. Unfortunately the UK financial industry does some pretty dumb things with its clients money so it's best to double check what they are doing ie is the default right for you. Then manage your money strategically ie on a time scale of years and decades NOT days and weeks. Also make sure your money is in low cost index trackers wherever possible and not expensive actively managed funds.