How to transfer private pension into a less volatile market

kendricks1

Hi,my pension has just recovered after 18 months basically back to where it was.
Im looking to retire in the next 12 months at 58,I don't really want long term investment and I'm basically happy with what my pension has made,I plan to spend the money over a ten to 15 year period.
Any ideas on placing my pension into something guaranteed to at least cover the sum for inflation eating it away.

MeteredOut

I doubt you'll find something that will guarantee to beat inflation if you want to stay invested.

What mix of equities/other is your pension currently invested in? Moving to a lower equity mix is a simple change that should reduce risk, but does not guarantee to match inflation.

Are you aware of money market funds, which largely track interest rates?

Or have you considered annuities?

Albermarle

If it is only where it was 18 months ago , that is a very poor result. 
What is it invested in ?

Exodi

kendricks1 said:

Hi,my pension has just recovered after 18 months basically back to where it was.
Im looking to retire in the next 12 months at 58,I don't really want long term investment and I'm basically happy with what my pension has made,I plan to spend the money over a ten to 15 year period.
Any ideas on placing my pension into something guaranteed to at least cover the sum for inflation eating it away.

Usually when someone says 'transfer' in regards to their pension, they're talking about moving from one provider from another. What it sounds like you're referring to is selling out a higher risk fund to put your money in a lower risk fund. I'm not meaning to be pedantic, just mentioning it in case.

What platform is your pension invested in? From what you describe, for the next 12 months a STMMF sounds like it would be useful to you, e.g:

https://www.vanguardinvestor.co.uk/investments/vanguard-sterling-short-term-money-market-fund-a-gbp-accumulation/overview

Not being invested carries inflation risk as you say, but if you want to guarantee against the risk of inflation, buying an annuity sounds like the perfect option for you. It also means there is no risk of running out of cash.

dunstonh

Any ideas on placing my pension into something guaranteed to at least cover the sum for inflation eating it away.

That would be an annuity.
And by the sounds of things (reference to 18 months loss and recovery) it sounds like you are invested already to buy an annuity.

kendricks1

Exodi said:

kendricks1 said:

Hi,my pension has just recovered after 18 months basically back to where it was.
Im looking to retire in the next 12 months at 58,I don't really want long term investment and I'm basically happy with what my pension has made,I plan to spend the money over a ten to 15 year period.
Any ideas on placing my pension into something guaranteed to at least cover the sum for inflation eating it away.

Usually when someone says 'transfer' in regards to their pension, they're talking about moving from one provider from another. What it sounds like you're referring to is selling out a higher risk fund to put your money in a lower risk fund. I'm not meaning to be pedantic, just mentioning it in case.

What platform is your pension invested in? From what you describe, for the next 12 months a STMMF sounds like it would be useful to you, e.g:

https://www.vanguardinvestor.co.uk/investments/vanguard-sterling-short-term-money-market-fund-a-gbp-accumulation/overview

Not being invested carries inflation risk as you say, but if you want to guarantee against the risk of inflation, buying an annuity sounds like the perfect option for you. It also means there is no risk of running out of cash.

Yes that's exactly the case my pension is with Aviva in a mixed European fund it dropped approximately 18 percent,thanks for the advice 👍

kendricks1

Albermarle said:

If it is only where it was 18 months ago , that is a very poor result. 
What is it invested in ?

Hi,it's investment in a mixed European and worldwide fund 60/40,

kendricks1

MeteredOut said:

I doubt you'll find something that will guarantee to beat inflation if you want to stay invested.

What mix of equities/other is your pension currently invested in? Moving to a lower equity mix is a simple change that should reduce risk, but does not guarantee to match inflation.

Are you aware of money market funds, which largely track interest rates?

Or have you considered annuities?

Hi thanks for the information,I'm looking into annuites at present,my pension is in a 60/40 European and worldwide fund.
I contacted the pension provider to talk about reducing the risk they advised I seek financial advice,not really that helpfull.

MeteredOut

kendricks1 said:

MeteredOut said:

I doubt you'll find something that will guarantee to beat inflation if you want to stay invested.

What mix of equities/other is your pension currently invested in? Moving to a lower equity mix is a simple change that should reduce risk, but does not guarantee to match inflation.

Are you aware of money market funds, which largely track interest rates?

Or have you considered annuities?

Hi thanks for the information,I'm looking into annuites at present,my pension is in a 60/40 European and worldwide fund.
I contacted the pension provider to talk about reducing the risk they advised I seek financial advice,not really that helpfull.

Pension providers will never give advice (and would get in trouble if they did). An IFA (not just an FA) is the correct route if you don't want to investigate things yourself.

Albermarle

kendricks1 said:

MeteredOut said:

I doubt you'll find something that will guarantee to beat inflation if you want to stay invested.

What mix of equities/other is your pension currently invested in? Moving to a lower equity mix is a simple change that should reduce risk, but does not guarantee to match inflation.

Are you aware of money market funds, which largely track interest rates?

Or have you considered annuities?

Hi thanks for the information,I'm looking into annuites at present,my pension is in a 60/40 European and worldwide fund.
I contacted the pension provider to talk about reducing the risk they advised I seek financial advice,not really that helpfull.

There is something not right here. I would have expected such a fund to be between 12 % and 20% up since April 3rd 2024 , depending on its exact composition.
Sometimes the figures in the data sheets are only updated every 3 months and not straightaway, so they could easily be 4 months out of date, which can make a big difference.

QrizB

kendricks1 said:

Albermarle said:

If it is only where it was 18 months ago , that is a very poor result. 
What is it invested in ?

Hi,it's investment in a mixed European and worldwide fund 60/40,

Can you share the name of the fund, as it appears in your paperwork or on the website/app?

it might help clear up some confusion.