Help Needed Please

Emmia

princess23 said:

Hi guys I have four pension pots an SL sustainable multi asset pre retirement fund. It has a volatility of 4. A SL sustainable multi asset which has a volatility rating of 5. I also have an SL at retirement universal which has a volatility rating of 3 and finally a SL inv pathway option 1 pension fund which has a volatility rating of 4 also. (0 - 7 with 7 being highest risk) . Considering I'm planning to retire in 3 years time  would you consider these to be in the right categories if that makes sense.  Also I won't be making any further monthly contributions as I will be in a newer pension with my new employer. I am just concerned what will then happen with my SL pension. Obviously I need to see what my new pension provider/employer will offer me to then make a decision whether to transfer all of my funds over including taking into account any fees for doing so.  I am not a risk taker so am concerned that once I stop paying into SL what will happen with the markets and how it will effect my funds. Is there anything I can do I.e. move to a lower risk category or am I being over cautious? I hope this all makes sense and thank you again for any help/advice you can offer.
.

If you stop paying into SL your existing investments will continue to grow, via interest/investment returns (they don't disappear). You can leave the SL untouched and doing it's thing and just start to draw from it when you reach retirement. 

Your new pension (where you'll be investing from now onwards) will also pay out when you retire, so you'll end up with two pension payments (plus your state pension in due course... Hopefully that's all full and up to date) coming into your bank account. 

bjorn_toby_wilde

princess23 said:

Hi guys I have four pension pots an SL sustainable multi asset pre retirement fund. It has a volatility of 4. A SL sustainable multi asset which has a volatility rating of 5. I also have an SL at retirement universal which has a volatility rating of 3 and finally a SL inv pathway option 1 pension fund which has a volatility rating of 4 also. (0 - 7 with 7 being highest risk) . Considering I'm planning to retire in 3 years time  would you consider these to be in the right categories if that makes sense.  Also I won't be making any further monthly contributions as I will be in a newer pension with my new employer. I am just concerned what will then happen with my SL pension. Obviously I need to see what my new pension provider/employer will offer me to then make a decision whether to transfer all of my funds over including taking into account any fees for doing so.  I am not a risk taker so am concerned that once I stop paying into SL what will happen with the markets and how it will effect my funds. Is there anything I can do I.e. move to a lower risk category or am I being over cautious? I hope this all makes sense and thank you again for any help/advice you can offer.
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Nobody can really tell you what will happen with the markets.

What percentage of your pot is in the various funds above? As you approach retirement it’s a good idea to have a few years worth of income in low risk investments but too much derisking can leave you short in future years.

Remember that you will be retired for a long time so you want the rest of that pot to continue growing.

Albermarle

princess23 said:

Hi guys I have four pension pots an SL sustainable multi asset pre retirement fund. It has a volatility of 4. A SL sustainable multi asset which has a volatility rating of 5. I also have an SL at retirement universal which has a volatility rating of 3 and finally a SL inv pathway option 1 pension fund which has a volatility rating of 4 also. (0 - 7 with 7 being highest risk) . Considering I'm planning to retire in 3 years time  would you consider these to be in the right categories if that makes sense.  Also I won't be making any further monthly contributions as I will be in a newer pension with my new employer. I am just concerned what will then happen with my SL pension. Obviously I need to see what my new pension provider/employer will offer me to then make a decision whether to transfer all of my funds over including taking into account any fees for doing so.  I am not a risk taker so am concerned that once I stop paying into SL what will happen with the markets and how it will effect my funds. Is there anything I can do I.e. move to a lower risk category or am I being over cautious? I hope this all makes sense and thank you again for any help/advice you can offer.
.

As already said- markets are unpredictable, so no point trying to guess.
What we all hope ( and it is based on solid historical evidence) is that although markets will go up and down, the long term trend will remain up/above inflation.
Although I do not know the details of the funds you mention, it is pretty clear from their names, that only a part of them will be invested in the stock markets anyway, most likely with the rest in corporate and government bonds, which will tend to smooth the ups and downs.
Unless you have strong nerves, it is best not be 100% in stock markets, when only 3 years from retirement. On the other hand you might be withdrawing from this pension for decades, so you do not want to be too cautious either.

and finally a SL inv pathway option 1 pension fund 
Normally Investment pathway options are for when you are withdrawing from the pension ( they are standard options offered by many (all?) providers) so not sure how you are in that one.

Obviously I need to see what my new pension provider/employer will offer me to then make a decision whether to transfer all of my funds over including taking into account any fees for doing so.
Yes makes sense to see what the new pension looks like. Normally nowadays no fees for transferring pensions, but for now the SL one will tick over so no rush, and it may or may not be better to leave it where it is.

princess23

Hi everyone it looks like my new pension provider will be S.W.  not sure yet which plan i am being offered but they will be paying 4% to my 5% (salary).  This is less than my current situation where I and my employer are paying double this. Also it appears their management  fees are alot higher, so quite alot of negatives there. I was wondering if it would be possible/sensible for once my payments are paid in using salary sacrifice to then periodically transfer into my S.L. pension not sure on whether this can be done/advisable or the fees involved?  your thoughts please or would you just keep in in S.W. for four years? Again thank you for any help/advice