Pension Pot

59598_

I retired at the end of March I have an Aviva (My Future Focus Drawdown) work place pension which has performed well leading up to retirement. It has taken a bit of a hit over the last month but I am not planning to take any money out of the pot for a few years. My question is should I move the pot to a safer fund or weather the storm. The current fund risk factor is 3/7 which is acceptable.

Mark_d

Personally I think the storm is over and we're on a slow road to recovery now.  This would mean an element of risk should result in growth of your portfolio.  3/7 risk is  on the cautious side, which makes sense as you're near retirement.  I think you're well positioned if you're planning on taking drawdown but maybe you want a minor reduction in risk if your plan is to buy an annuity

ali_bear

I think the advice now would be "steady as she goes". You're about a month too late for moving to a safer fund. 

dunstonh

59598_ said:

I retired at the end of March I have an Aviva (My Future Focus Drawdown) work place pension which has performed well leading up to retirement. It has taken a bit of a hit over the last month but I am not planning to take any money out of the pot for a few years. My question is should I move the pot to a safer fund or weather the storm. The current fund risk factor is 3/7 which is acceptable.

That ship has sailed.   Any movement now is likely to result in you selling when down only to buy back in when more expensive and miss out on the recovery.

This drop has been one of the mildest crashes in the last 25 years.     What did you do in all the rest of the periods when there were worse drops?       Why do you think it should be different now?

Hoenir

What does a few years consitute?  While not planning to could there be a scenario where money would be required at short notice ? 

Albermarle

59598_ said:

I retired at the end of March I have an Aviva (My Future Focus Drawdown) work place pension which has performed well leading up to retirement. It has taken a bit of a hit over the last month but I am not planning to take any money out of the pot for a few years. My question is should I move the pot to a safer fund or weather the storm. The current fund risk factor is 3/7 which is acceptable.

If you go to a more cautious fund, then it is possible your pot will not last as long due to a lack of long term growth.

As you do not need to withdraw any money for a few years, it would actually be more logical to actually increase the risk factor a notch.