Overseas pension

[RizzoTheRat]

I have existing pension plans in £, but have just started a new job paid in €, which has a pension plan that allows me to invest in both € and $ funds. Obviously at a minimum this means I'm going to have € plan as well as a £ plan, but should I be considering having some of it in $ as well?

Given the choice would people spread it around as many currencies as possible to try and protect against currency fluctuations, or would this actually be riskier, given that the eventual payout would be in € at whatever the exchange rate is at the time?

[rdjohn]

The low risk option is in the currency that you intend to be spending when you retire. If that is £Sterling, then neither option is really attractive for safe pension funds.

If you like to be exposed to more risk to improve your overall return, then you need to understand where the fund will be invested in each currency and how the pension will be paid as you will probably need a local receiving account and then you have monthly, or other, fees to return it back to £Sterling.

Unfortunately, I do not think there is only one answer to your conundrum.