Advice re pension funds

dunstonh

Can anyone help me understand where the recent growth is coming from within these  two funds and how to allocate more to the growth areas. 

Mainly on the back of US equities tech.

Future growth areas are unknown.  US and Global Ex US tend to cycle.  In this cycle it has been US.  In the previous it was Global ex US.  Nobody knows how long a cycle will last.   Hence why you diversify and average them all out.

dont_use_vistaprint

Linton said:

dont_use_vistaprint said:

I have an Aviva life strategy pension that I wish to start drawing down from in about one year when I am 55.

It’s currently invested in two funds

58% My future focus growth S6
https://markets.ft.com/data/funds/tearsheet/summary?s=GB00B4W9CK61:GBP

42% My future focus consolidation pre 2024 S6

https://markets.ft.com/data/funds/tearsheet/summary?s=GB00B98Z7V97:GBP

The choice of funds is the way that it is because I have artificially set my retirement age to 67 so that it focuses more on growth.

it’s currently worth just over £300,000 and fees are low. I paid into this pension for around 2.5  years, it never seemed to make any money but the tax relief and employer contributions were extremely generous so it made sense to. I’ve not paid in anything for the last two years and it seems to be growing nicely now.

When I look more closely, it seems that the growth units are the ones doing all the work.

I don’t understand what the two different funds are meant to do? Is the consolidation meant to be safer but grow more slow slowly because it has a lower risk rating? But based on its performance, this doesn’t look the case.

if you were looking to start drawing down
in a year from this, what changes would you make if any?

To answer your original question....

My assessment:

The growth fund appears to be designed for moderate growth from global equity somewhere between Vanguard Life Strategy 60 ahd 80. 

The consolidation fund seems to be mainly intended not to lose money probably for when you are near retirement and wanting to buy an annuity.  It is based on derivatives rather than simple equity or bond funds and so it is difficult to comment on what it is really invested in.

Overall your portfolio is around 40% equity which I think many on this forum would consider to be over-cautious for pension pot accumulation if you are intending to move to drawdown.  Even in drawdown the often advocated equity allocation is 60%.  

What you allocation in retirement should be is impossible to say without much more information on yout needs, other sources of income, and attitude to risk.  To get an appropriate and reliable proposal on fund chooice I suggest you talk to an IFA

Thanks - that’s useful. 

I think I might shift it all into the growth , I intend to drawdown gradually starting in around 10 months , utilising 25% tax free on each withdrawal , leaving the pot uncrystalused and invested the sane way and if it lost or gained nothing it would represent  approx 10-15 years income (& will be below income tax threshold & have ISA as a second income ) so I think that’s enough time to stay invested in something between a VLS 60 & 80 and expect to beat savings would you agree ?