what percentage of equity do you hold in your retirement pension ?

leosayer

I use a combination of the following:

Money Market funds - this is for money that I'm due to drawdown and spend within the next 12 months.

Short-term Gilt fund - IGL5 - iShares UK Gilts 0-5yr UCITS ETF. The average bond duration is 2.5 years so there's little volatility and the impact of sudden interest rate changes is softened compared to a MM fund. This is for money that I expect to draw down in the next 2 - 5 years.

Gilt ladder - from now until 2031 for my wife to generate her annual retirement income.

The idea from all the above is to hold the lowest risk asset possible in contrast with our equity holdings. I'm not trying to generate a return or beat inflation - that's what equities are for.

Mick70

https://forums.moneysavingexpert.com/discussion/comment/82005485#Comment_82005485

not retired now my friend, hoping to retire in just under two years, my wife very recently retired though and has mix of cash/DC/S+S ISA - Both of latter two are weighted 60:40 hence my original question, quite surprising to see articles claiming 30% equity on retirement as I would have assume that was too low, however it now has me thinking that we may switch "some " say 2 years of needed income from 60:40 down to 40:60 - its with vanguard so cant do 50:50…

for my own circumstances , I have DB , But also have a DC Pot at works pension , its currently sitting on a risk scale of 4 out of 7 (royal london, growth, think it has about 55-60% equities, and I am in 2 minds whether to de-risk slightly to the Moderate portfolio which is risk 3 out of 7, 45% equity), unfortunately you can only have one governed portfolio you cannot have a mix of the two , and i came out of the generic lifestyle work pension

ex-pat_scot

Age 57.

Taken the full PCLS. Some DB.

Still working part time - consultancy.

£1.1m DC in 100% global equity low cost Vanguard ETF tracker. VDEV / VWRL / whatever has the lowest ongoing costs.

In a similar manner to the thoughts on passive vs active; global vs territorial etc, I figure that as I have no edge on what is the correct amount of equities to FI, then I might as well be 100% on equities in the tracker.

I know it's not an exact equivalence against the active/passive debate, but:

• I can afford to absorb a significant recession and the impact on sequence of returns
• I'm still pottering around with consultancy, and could flex this up if required
• I have a 35 year planning window, so I believe I am still investing mostly for the long term rather than short term
• there seems to be too much discretion involved in the choice of bond / FI ETFs or funds, which undermines my attraction to the philosophy of passive investing.
• the only alternative I've really considered, apart from a modest cash buffer, is one of the Vanguard Life Series ETFs. But which one? LS60 seems to be the default option, but others are equally valid in principle

I know we are teetering way above the collective wisdom of where the market should be, and indeed we have been so for a good 15 years or so. Frankly the market always (eventually) finds the balance point between fear and greed, between those believing undervalue and overvalue. The market, and global share prices, are forecasts of the future, and all forecasts are certainly wrong. Yet in aggregate they are the best we have.

Please do not follow / copy / admire my approach! It certainly has served me well to date, and I'm sure hubris will become my teacher at some point.

I expect lots of volatility, which is the entry price for a 100% equity bias. I haven't been spooked by the many tremors in the last few years. Mildly frustrated, yes, but not alarmed. I expect more.

fizio

Same as ex-pat above, DB + premium bonds plus saving means i will not be in any position to rely on investments hence 100% equity global tracker

mrklaw

I’m curerntly happy with Fidelity which means staying ETF to keep costs reasonable.

looking at bond options and going cross-eyed with duration/government/corporate/dist/acc etc etc

does this make sense for a DIY mix

currently 100% VWRP

change to 70% VWRP; 15% VAGS; 15% IGL5

two bond funds, both accumulating. one short duration <5yrs, one longer duration and some corporate in there.

on top of that I’d have the usual cash buffer