Advice on moving pension fund now due to unplanned retirement

EverythingCounts

https://forums.moneysavingexpert.com/discussion/comment/81932210#Comment_81932210

Okay thanks for that advice, I will check to see what default funds it will move to as it gets nearer to retirement age.

I certainly feel I need to derisk somewhat in the next year or two, maybe a 50/50 split is a good option to start, it’s these things I really need to start thinking about. Thank you.

Notfarfromtheborder

https://forums.moneysavingexpert.com/discussion/comment/81932277#Comment_81932277

It's kind of difficult when you don't know when you are going to retire, I'm in the same boat. Could have been April this year, but now wont be, could be April next year, April 28 or who knows, looking to reduce hrs at work so actual date is unsure and may mean me doing a few more years with less hrs. I'm a similar age to you

I've been holding a large (maybe too large) % of my funds in cash / cash like investments at 33% because I didn't / don't know when my end date career wise is.

Of course recent events are alarming with regards to portfolio values, however, that's the reason I am holding 33% in cash (ish). It still gives me up to 8 years spending without touching the other 67% which is almost 100% equities.

Yes, I've missed out on some growth, with the 33% just keeping up with inflation but whenever I decide to retire, I'll still have up to 8 years spending power whatever happens to equities (within reason). Caveat that with what may happen to inflation and whether MM funds / Cash Isa's will keep pace.

LateStarter

Same boat here; I was hoping to retire next spring/summer, so started to move into cash/MMF/gilts. I figure I'll need 180-200k to bridge 6 years until state pension, so took the hit on growth to make most of it safe - currently returns at about 4% in cash ISAs and a SIPP. I look at my works pension which has lost 40k in the last 3 weeks, and breathe a little sigh of relief - There's a time to stop chasing returns.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81935224#Comment_81935224

If you need the money for expenditure in the next few years/until state pension, then makes sense to hold it in cash or similar.

However if you are planning to drawdown over decades, it is better to keep 'chasing returns' ( to a point), as this would mean it was more likely that your pot would last out, compared to holding cash.

LateStarter

https://forums.moneysavingexpert.com/discussion/comment/81935237#Comment_81935237

Agreed, it's part of why I kept my bridge money in a SIPP rather than the works pension - which is still fully invested. Once I do retire, I'll look at de-risking the works pension in buckets of 2-3 years.