Unplanned early retirement and haven't de-risked SIPP

JayRitchie

Sorry to be really cautious - have you double checked that the DB pension is index linked with no cap? I think if there is a cap on the annual increase this might be a consideration.

TimeToEatCake

JayRitchie said:

Sorry to be really cautious - have you double checked that the DB pension is index linked with no cap? I think if there is a cap on the annual increase this might be a consideration.

Thanks - yes, double checked and definitely no cap.

JayRitchie

TimeToEatCake said:

JayRitchie said:

Sorry to be really cautious - have you double checked that the DB pension is index linked with no cap? I think if there is a cap on the annual increase this might be a consideration.

Thanks - yes, double checked and definitely no cap.

Thats great news! 

Hoenir

TimeToEatCake said:

Hoenir said:

TimeToEatCake said:

S&S ISAs invested in global equity index trackers: £135k
SIPPs invested in global equity index trackers: £645k

Not only are you invested 100% equities. That's a highly concentrated portfolio. Equities are always exposed to volatility. Risk comes in many other other forms besides this. 

Yes, agreed.  Am quite worried about this.  Unfortunately LifeSight, the provider of my largest SIPP, has a very limited range of funds for diversification.  This didn't bother me on growth phase, but I think is going to be a problem now. 

I'm surprised that LifeSight also don't offer more balanced options. Markets driven by momentum are somewhat different to actual financial growth i.e. profitability and most importantly cash flow. Has been a great time to be an equity investor in certain markets over the past decade. Corrections when they happen can be sharp and painfull. Recovery can take many years. Not losing as much money in downturns is in many ways more important than making more in the upturns.