Pension growth strategy?
Discussion
Looking for some pension investment advice. I'm in my mid forties, with a substantial pension fund (relatively speaking).
However I assume like many people my pension growth hasn't been performing as good as other years - for all the reasons that we know about in the news over the last 4 or so years. However, I feel like I need to learn a good pension stratgey especially as I am coming closer (20 years or so) away from retirement. I've pretty much stuck to a couple of volatile (high-ish risk) funds over the course of the last 10 or so years - as per the graph below. I combined a different pension into this one around August 2018 (so hence the spike around then).
Just under the last 3 or years, the pot has only increased by 7% roughly across the 3 years but I did however stop making contributions for around the last 2 years (since July 2022). I will re-start making significant contributions in the next month or so again.
I guess my basic question is: What are the best strategies people used to grow their pension pots? Do you switch funds regularly or just pump and dump and forget about it like I've have done over the last 10 or so years? My pension funds understanding is very limited - all I have used as my guiding principle is to use higher-risk funds given my current age profile and then look to de-risk as I get older and move them to less volatile funds in time. Sometimes I feel I should be monitoring fund performance on a weekly, monthly or quarterly basis and move them accordingly. Does any one do that in reality or do people take a longer term view? What is a good strategy? Split the pot into even more funds? My previous fund selection 10 years ago was based IIRC on previous years fund performance (but I can't really remember - might even have been a finger-in-the-air selection).
However I assume like many people my pension growth hasn't been performing as good as other years - for all the reasons that we know about in the news over the last 4 or so years. However, I feel like I need to learn a good pension stratgey especially as I am coming closer (20 years or so) away from retirement. I've pretty much stuck to a couple of volatile (high-ish risk) funds over the course of the last 10 or so years - as per the graph below. I combined a different pension into this one around August 2018 (so hence the spike around then).
Just under the last 3 or years, the pot has only increased by 7% roughly across the 3 years but I did however stop making contributions for around the last 2 years (since July 2022). I will re-start making significant contributions in the next month or so again.
I guess my basic question is: What are the best strategies people used to grow their pension pots? Do you switch funds regularly or just pump and dump and forget about it like I've have done over the last 10 or so years? My pension funds understanding is very limited - all I have used as my guiding principle is to use higher-risk funds given my current age profile and then look to de-risk as I get older and move them to less volatile funds in time. Sometimes I feel I should be monitoring fund performance on a weekly, monthly or quarterly basis and move them accordingly. Does any one do that in reality or do people take a longer term view? What is a good strategy? Split the pot into even more funds? My previous fund selection 10 years ago was based IIRC on previous years fund performance (but I can't really remember - might even have been a finger-in-the-air selection).
Edited by type-r on Wednesday 17th April 11:16
Some great posts and advice on here, thank you. I haven't got a clue about SIPPs, to global trackers, to S&P etc It's an acronymn minefield lol. Looks like I have some homework to do!
Thanks for the links to education and also letting me know how sh!t my fund selections are!
I definitely needed to hear that. Also the ridiculous fees I never knew I was shelling out. Time to clean up my act and get proper pension savvy.
Thanks for the links to education and also letting me know how sh!t my fund selections are!
I definitely needed to hear that. Also the ridiculous fees I never knew I was shelling out. Time to clean up my act and get proper pension savvy.Gassing Station | Finance | Top of Page | What's New | My Stuff