Nearing retirement - work placed DC mitigation/de-risk

Cobbler_tone

Is there an option to de-risk any significant drops to a pension in the final months before accessing?
For context and example, although I do appreciate funds have short term volatility - I see swings of a few hundred a day on a modest pot. I have a target date fund (L&G) which I contributed £2k to two weeks ago, with £1k of it currently dropping away in direct fund value.
I would appreciate any views, even if it is towards the lowest risk type of fund available in an attempt to protect final contributions, which for some reason seem to carry more value emotionally. Probably because it is money you are putting in the most recently.

SVaz

Lowest risk is a Short term money market fund or your pension provider’s Cash fund.  

80% of my contributions for the next two years are going into a Royal London STMMF. 

Marcon

Cobbler_tone said:

Is there an option to de-risk any significant drops to a pension in the final months before accessing?
For context and example, although I do appreciate funds have short term volatility - I see swings of a few hundred a day on a modest pot. I have a target date fund (L&G) which I contributed £2k to two weeks ago, with £1k of it currently dropping away in direct fund value.
I would appreciate any views, even if it is towards the lowest risk type of fund available in an attempt to protect final contributions, which for some reason seem to carry more value emotionally. Probably because it is money you are putting in the most recently.

...and of course you're more likely to take an interest if the end game (accessing the pot) is in mind!

If you really are looking at the final (few) months, and have 'time' in the tax year, then possibly make the contributions as late as possible, assuming that doesn't jinx any employer contributions.

mcc100

My workplace pension is with L&G and, prior to retirement next month, my contributions have been going into their cash fund, L&G PMC Cash 3, 
which has increased by 5.14% in the past year.

Cobbler_tone

Just a follow up but there isn't really a right or wrong. After seeing the entire £2k of my last contribution drop away in three weeks, it prompted me to take action.
I have left all of my DC pot alone but have changed future contributions to L&G PMC Cash 3. I figured regardless of what the current target date fund does (i.e. hopefully pick up again), at least what I put in going forward will stay above water.
I felt it was the most pragmatic approach and maybe more emotional than financial! 
It's a top up pension but I want to see the value of money being put in today and my remaining months.

I have also made the commitment to myself to only look at it once a month!

pterri

I’m paid up to the end of may, there’s a chance I may pick up a day or two a week consultancy where I am. Not sure what to do pension wise, I may transfer some into safe indexed cash and also put some isa in cash savings. Not a whole lot but just to ride out a few months. 

Sarahspangles

Over the last couple of weeks my portfolio has rolled back all the way to…. early December. The money market fund holding I bought last May outperformed other funds for ten days in early August, and if I’d needed to draw down then I would have been glad I had it, but I don’t need it until December this year. I’m wondering if I should convert funds to cover the following December’s drawings into something slightly riskier.

Cobbler_tone

Sarahspangles said:

Over the last couple of weeks my portfolio has rolled back all the way to…. early December. The money market fund holding I bought last May outperformed other funds for ten days in early August, and if I’d needed to draw down then I would have been glad I had it, but I don’t need it until December this year. I’m wondering if I should convert funds to cover the following December’s drawings into something slightly riskier.

ITV shares…..

Sarahspangles

Cobbler_tone said:

Sarahspangles said:

Over the last couple of weeks my portfolio has rolled back all the way to…. early December. The money market fund holding I bought last May outperformed other funds for ten days in early August, and if I’d needed to draw down then I would have been glad I had it, but I don’t need it until December this year. I’m wondering if I should convert funds to cover the following December’s drawings into something slightly riskier.

ITV shares…..

This is strictly a BBC household!