Limited choice of pension funds

[ScotHill]

I have an old DB company pension with about £13k in it, and a limited choice of funds to put them in - currently it's all in the Legal & General Global Equities 60:40 fund, but should I look at diversifying it? This choice of funds was from 2013 but I doubt it's changed since. I've not paid into this pension since 2010, and got about 25 years left until I retire so not in a rush.

The 60:40 fund has one-star ratings from Trustnet etc, does that mean it's a bad fund to be in? It's doubled in 7 years, tracked most of the global equities funds there or thereabouts, and the fees within this pension wrapper are 0.3%, doesn't feel that high to me but hey....



An adviser from another company looked at it once and said just to leave everything as it was, as even though there was a limited number of funds it would cost money to transfer it all to a different pension so wasn't really worth it. Good advice?

[darreni]

If it has investment funds, it’s a DC scheme, not a DB.

[sidicks]

darreni said:

If it has investment funds, it’s a DC scheme, not a DB.

Agreed!

The fund has slightly underperformed its ABI Sector (Global equities) but that’s likely to be a result of the fixed weights (60% UK, 40% overseas) rather than any issues with the underlying management approach. Of course that can also work for you - the recent 1-year performance beats the benchmark.

As it’s fairly cheap - 0.3% for the management (and presumably no additional platform fees), then I can see why you’ve been told it’s probably not worth moving it.

[ScotHill]

Sorry yes, DC scheme, I'd just been handling my DB9 so a Freudian typo.

Yeah no other fees so will just keep it as is.