Which funds should I choose for my penson?

phil1_2_1

Please can you help! Which Funds from the list below should I choose for my pension fund ?
BGI Global Equity (60 40) index fund
BGI UK Index_Linked Gilt Index fund
BGI UK Equity Index Fund
BGI UK Corporate Bond Index Fund
Cash Fund
I am 52 now and planing to retire @ 65 I know i have not got long left :rotfl:

Thanks A lot
Phil

jamesd

Of those the BGI Global Equity (60:40) fund is most suitable at your current age and retirement plan. Maybe 10% into the BGI UK Corporate Bond Index Fund. This will at least give you some global, UK and bond investing, about the best that can be done with such a limited choice of investments.

If it's a work plan you may be stuck with this very limited range of investments.

It's unlikely to be worth making additional contributions beyond those your employer will match into this pension plan. Unless it's a salary sacrifice scheme so you can gain from not having to pay NI on the contributions. A personal pension with a better range of investments would be the way to go for extra contributions.

Around age 60 you should look at the value of your pensions and decide if you will want to use income drawdown (taking income from investments and continuing to manage those investments) or buy an annuity (regular income, probably less than from income drawdown, but much more certain). If you go with the annuity option you should look to start moving increasing percentages of your fund into the corporate bond index fund to limit the potential for drops in value. Maybe move 20% of the value each year. If using income drawdown you could move much less, perhaps 10% or 5% or even nothing.

phil1_2_1

Thanks for that Jamesd

phil1_2_1