DC Pension Fund

fkerr

Hi,

I have a workplace DC pension through Scottish Widows and I'm 100% invested in SW Baille Gifford North American CS8. I am 40 years old and the fund is worth £200k which is probably a lot lower than a lot of other people my age. I currently contribute 25% of my salary each month & the company pays in 6%. The growth over 17 years is £42,000 (27%). Since the US election the fund has increased significantly but I was considering switching from SW Baille Gifford North American to SW North American CS8 as this fund is slightly lower risk, with a greater distribution of US stocks. Can anyone advise on other funds from Scottish Widows which they recommend. Thanks

Marcon

fkerr said:

Hi,

I have a workplace DC pension through Scottish Widows and I'm 100% invested in SW Baille Gifford North American CS8. I am 40 years old and the fund is worth £200k which is probably a lot lower than a lot of other people my age. I currently contribute 25% of my salary each month & the company pays in 6%. The growth over 17 years is £42,000 (27%). Since the US election the fund has increased significantly but I was considering switching from SW Baille Gifford North American to SW North American CS8 as this fund is slightly lower risk, with a greater distribution of US stocks. Can anyone advise on other funds from Scottish Widows which they recommend. Thanks

What are your objectives/risk appetite?

squirrelpie

Your funds seem to be very concentrated in North America. This has been good for growth over the past several years. But some people expect to see a major reversal in North America sometime soon. So it might be sensible to "take some profits" and spread your risk. i.e. sell some of your North American holdings and buy something somewhere else.

Growth may not be as good, but equally the risk of a catastrophe won't be as high.

QrizB

fkerr said:

I'm 100% invested in SW Baille Gifford North American CS8.

That's been a bit of a wild ride, then!
https://www.trustnet.com/factsheets/p/r73v/sw-baillie-gifford-north-american-pn-cs8

fkerr said:

I am 40 years old and the fund is worth £200k which is probably a lot lower than a lot of other people my age.

Per this article, the average 40-year-old has a pension pot worth £30k (and the average 60-year-old has ~£100k). You're well ahead of the herd.

dunstonh

Can anyone advise on other funds from Scottish Widows which they recommend. 

That is a regulated activity.  Anything posted here is not a recommendation but just discussion and comment.

SW have a number of pension contracts and the fund availability varies with each.  One of the SW pensions is whole of market and has over 10,000 investment options.

I'm 100% invested in SW Baille Gifford North American CS8

That is a very poor investment decision and so is your choice to remain 100% US equities albeit with another fund.

Before anyone suggests alternative US equity funds, you should read up more on how to invest.

Albermarle

QrizB said:

fkerr said:

I'm 100% invested in SW Baille Gifford North American CS8.

That's been a bit of a wild ride, then!
https://www.trustnet.com/factsheets/p/r73v/sw-baillie-gifford-north-american-pn-cs8

fkerr said:

I am 40 years old and the fund is worth £200k which is probably a lot lower than a lot of other people my age.

Per this article, the average 40-year-old has a pension pot worth £30k (and the average 60-year-old has ~£100k). You're well ahead of the herd.

Although I do not think this takes account of people with DB pensions.
Also I think the average figures are affected by a significant % with no pension at all.
Still it is clear that £200K at 40 is way ahead of the pack.

FIREDreamer

Albermarle said:

QrizB said:

fkerr said:

I'm 100% invested in SW Baille Gifford North American CS8.

That's been a bit of a wild ride, then!
https://www.trustnet.com/factsheets/p/r73v/sw-baillie-gifford-north-american-pn-cs8

fkerr said:

I am 40 years old and the fund is worth £200k which is probably a lot lower than a lot of other people my age.

Per this article, the average 40-year-old has a pension pot worth £30k (and the average 60-year-old has ~£100k). You're well ahead of the herd.

Although I do not think this takes account of people with DB pensions.
Also I think the average figures are affected by a significant % with no pension at all.
Still it is clear that £200K at 40 is way ahead of the pack.

Probably understated as well due to people having multiple pension pots, eg an individual might have 4 pots of £50k. So he has £200k but counts as £50k in the stats.

JoeCrystal

Albermarle said:

QrizB said:

fkerr said:

I'm 100% invested in SW Baille Gifford North American CS8.

That's been a bit of a wild ride, then!
https://www.trustnet.com/factsheets/p/r73v/sw-baillie-gifford-north-american-pn-cs8

fkerr said:

I am 40 years old and the fund is worth £200k which is probably a lot lower than a lot of other people my age.

Per this article, the average 40-year-old has a pension pot worth £30k (and the average 60-year-old has ~£100k). You're well ahead of the herd.

Although I do not think this takes account of people with DB pensions.
Also I think the average figures are affected by a significant % with no pension at all.
Still it is clear that £200K at 40 is way ahead of the pack.

I believe there is ONS spreadsheet with all the informations about pension wealth which also include "value" of DB pension schemes which actually massively increase the "average". The sole DC average wealth are actually much lower overall. I will see if I can find it 

QrizB

JoeCrystal said:

Albermarle said:

QrizB said:

fkerr said:

I am 40 years old and the fund is worth £200k which is probably a lot lower than a lot of other people my age.

Per this article, the average 40-year-old has a pension pot worth £30k (and the average 60-year-old has ~£100k). You're well ahead of the herd.

Although I do not think this takes account of people with DB pensions.
Also I think the average figures are affected by a significant % with no pension at all.
Still it is clear that £200K at 40 is way ahead of the pack.

I believe there is ONS spreadsheet with all the informations about pension wealth which also include "value" of DB pension schemes which actually massively increase the "average". The sole DC average wealth are actually much lower overall. I will see if I can find it 

This ONS page was linked from the article:
https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/datasets/pensionwealthwealthingreatbritain

Might be what you're thinking of?

Edit to add: the numbers quoted in the article (and hence by me) look to be the 50th %ile values from Table 6.8, "all pension types" so including DB and DC pensions.

kipsterno1

You have asked about this twice before. When your pot was £160k it was suggested that you were well ahead of most people your age. It was also brought up that maybe you should look at other options. How did that go?