Age 42, what should I invest for for retirement?

Luckybonus

Hello, I am Age 42, what should I invest for for retirement? Should |I go for all equities or equities and some EFT's?

Thankyou,

Grumpy_chap

You need to consider your investments as part of an overall strategy to achieve a return that aligns with your risk profile and takes into account assets outwith your pension provision. Far too little information in your post for a meaningful comment.

QrizB

Far too little information in your post for a meaningful comment.

OP has a second thread, which os probably the best place to discuss this:

https://forums.moneysavingexpert.com/discussion/6663826/avcs-or-sipp

Linton

ETFs are a form of fund. Many global equity trackers are available in ETF form.

So the question should really be whether you should invest in 100% equities or not, the ETF part is irrelevent. That really depends on your attitude to risk. Generally over a long period equities will provide higher returns than other normal investments available to the private investor. However the downside is that equity prices can be very volatile with major short term losses. Can your nerves withstand a temporary 40% fall in pension value or would you sell the whole lot in a panic thus turning a paper loss into a very real one?

ali_bear

Markets go up and down. With regular payments into a pension your money gets invested during both highs and lows and this has the effect of averaging-out those market fluctuations. As long as you are investing regularly for the long haul you can disregard them - at least until you get closer to retirement.

So at this stage with 15-20 years to go you want to be steadily putting your money into high growth/risk rated equity funds. Try to be globally diverse (UK, USA, Asia, RoW, emerging markets etc).

barnstar2077

At your age I would go all equities. Find a globally diversified fund and add money every month. Try not to check it too often. Time will take care of the rest.

I use Vanguard's FTSE Global All Cap index fund, but there are lots of others.

You don't say where these investments are being held, but many people ignore where their works pension is being invested and just go with the default fund. So, again, it is worth investing in a globally diverse 100% equity fund in there too.

Albermarle

So at this stage with 15-20 years to go you want to be steadily putting your money into high growth/risk rated equity funds.

At your age I would go all equities. Find a globally diversified fund and add money every month

Both are the right advice logically, but it depends on the personality/risk tolerance of the investor involved. Many will panic when the first big slump comes along. For the more risk averse/nervous investor, something less racy would be more suitable.

Diaz09

What's your current pension pot value and how much are you contributing monthly? The asset allocation everyone's suggesting makes sense, but there's a crucial question about whether you're maximising employer contributions first. If your employer offers matching and you're not getting the full amount, that's free money you're missing. Also worth checking if you're a higher-rate taxpayer - the tax relief on pension contributions becomes much more valuable. Once you've sorted the contribution strategy, then focus on the global equity approach others have mentioned.

daveyjp

https://forums.moneysavingexpert.com/discussion/comment/81960620#Comment_81960620

From the above link the OP is employed by an organisation offering a local government pension. It would make sense for the two threads to be merged.

DB pension is therefore the main pension being accumulated. Employer controbutions are irrelevant. OP is looking whether to save alongside in a SIPP or AVCs - the purpose of the other thread.

Luckybonus

Thankyou everyone so much for your comments, I really appreciate your advice., Thanks so much. I contribute £212.00p in the LGPS Pension Scheme a month. I enquired about buying extra pension, but the LGPS wouldnt contribute further to this to add any additonal benefit. I am in the process of setting up a AVC with Prudential for £50 a month, i think could access this at age 58.,

I am 42 and have significant health problems already, I am still working full time but not sure how sustainable this is.

I have a SIPP with around £6200 in this and am looking at how i can invest this for in higher returns for the coming years.

Health is wealth for sure. any feedback/thoughts most gratefully received. the majority of my savings for now i want to keep and sell my leasehold flat to purchase a Bungalow in the next 1-4 years. I am single. Not sure if to do it sooner rather than later health permitting and whilst i can work or if perhaps easier in 2-3 years when maybe i could afford it with perhaps |£15k left in the bank for emergencies etc.

any advice and feedback would be gracuiously appreciated.

Good wishes to you all and your own goals:)