Pension split

[Hoofy]

Just wondering. I'm 46. Just noticed my pension is 44.5% Global equity. What are people of my age typically recommended? Should I be moving more of it to the less risky stuff or is nearly 50% fine for my age group?

Ta.

[xeny]

What's the other 50%+ in ? regional equities of some sort, bonds, property?

<50% in equities in total would be a bit low for my preferences, but global aren't the only sort of equities.

[anonymous-user]

Here's a handy link for you, and an extract,
https://www.pensionsadvisoryservice.org.uk/about-p...

"Lifestyling involves investing in riskier assets when you have a long period before drawing your retirement benefits. As you get closer to your retirement date, typically 5 to 10 years before retirement, switching from these riskier assets into less risky ones, such as cash or fixed interest

"Lifestyling may be suitable for you if you’re intending to purchase an annuity when you retire, to provide you with an income for the rest of your life. It’s unlikely to be suitable if you intend to keep your retirement pot invested and to use income drawdown to provide you with an income in retirement"

Personal opinion? Be careful you don't shoot yourself in the foot by chasing the illusion of "safety".

[Hoofy]

xeny said:

What's the other 50%+ in ? regional equities of some sort, bonds, property?

<50% in equities in total would be a bit low for my preferences, but global aren't the only sort of equities.

44.5% Global equity
21.2% Bonds
18.7% UK equities
15% Property
0.6% Cash or Equivalents

Just considering things with my age.

[Hoofy]

rockin said:

Here's a handy link for you, and an extract,
https://www.pensionsadvisoryservice.org.uk/about-p...

"Lifestyling involves investing in riskier assets when you have a long period before drawing your retirement benefits. As you get closer to your retirement date, typically 5 to 10 years before retirement, switching from these riskier assets into less risky ones, such as cash or fixed interest

"Lifestyling may be suitable for you if you’re intending to purchase an annuity when you retire, to provide you with an income for the rest of your life. It’s unlikely to be suitable if you intend to keep your retirement pot invested and to use income drawdown to provide you with an income in retirement"

Personal opinion? Be careful you don't shoot yourself in the foot by chasing the illusion of "safety".

Ah, thanks, 10 years.

[JulianPH]

Hoofy said:

44.5% Global equity
21.2% Bonds
18.7% UK equities
15% Property
0.6% Cash or Equivalents

Just considering things with my age.

Looks like a good balanced spread to me. At what age do you think you will be taking benefits and will you use draw down or buy an annuity?

This will let you know when and how you should consider making changes.

[bitchstewie]

I'm a little younger and my company pension is this:

Governed Portfolio 4
RLP Property 16.40%
RLP Long (15yr) Gilt 0.50%
RLP Long (15yr) Corporate Bond 1.05%
RLP Long (15yr) Index Linked 0.50%
RLP Global High Yield Bond 0.20%
RLP Short Duration Global High Yield 0.60%
RLP Commodity 6.25%
RLP Global Managed 74.50%

They change allocations as you get closer to death retirement so in a few years it'll switch to this:

Governed Portfolio 5
RLP Cash Plus 0.12%
RLP Property 15.00%
RLP Medium (10yr) Gilt 0.50%
RLP Medium (10yr) Corporate Bond 6.00%
RLP Medium (10yr) Index Linked 4.88%
RLP Global High Yield Bond 2.05%
RLP Short Duration Global High Yield 1.45%
RLP Commodity 7.00%
RLP Absolute Return Government Bond 1.00%
RLP Global Managed 62.00%

[Hoofy]

JulianPH said:

Hoofy said:

44.5% Global equity
21.2% Bonds
18.7% UK equities
15% Property
0.6% Cash or Equivalents

Just considering things with my age.

Looks like a good balanced spread to me. At what age do you think you will be taking benefits and will you use draw down or buy an annuity?

This will let you know when and how you should consider making changes.

Thanks. I've not even considered retiring. And my business is not exactly hard work or boring so I can easily see me working wayyyy into my 70s (assuming I make it that far!).

[Hoofy]

bhstewie said:

I'm a little younger and my company pension is this:

Governed Portfolio 4
RLP Property 16.40%
RLP Long (15yr) Gilt 0.50%
RLP Long (15yr) Corporate Bond 1.05%
RLP Long (15yr) Index Linked 0.50%
RLP Global High Yield Bond 0.20%
RLP Short Duration Global High Yield 0.60%
RLP Commodity 6.25%
RLP Global Managed 74.50%

They change allocations as you get closer to death retirement so in a few years it'll switch to this:

Governed Portfolio 5
RLP Cash Plus 0.12%
RLP Property 15.00%
RLP Medium (10yr) Gilt 0.50%
RLP Medium (10yr) Corporate Bond 6.00%
RLP Medium (10yr) Index Linked 4.88%
RLP Global High Yield Bond 2.05%
RLP Short Duration Global High Yield 1.45%
RLP Commodity 7.00%
RLP Absolute Return Government Bond 1.00%
RLP Global Managed 62.00%

Oh, that's quite high on the supposed risk side? (Asking not telling!)

[bitchstewie]

Hoofy said:

Oh, that's quite high on the supposed risk side? (Asking not telling!)

It's a standard Royal London group plan

https://www.royallondon.com/strategyfactsheets/str...

Vanguard and others will have an equivalent i.e. https://www.vanguardinvestor.co.uk/investments/van...

I must admit I noticed this thread as I keep wondering whether to explore my options.

[JulianPH]

Hoofy said:

Thanks. I've not even considered retiring. And my business is not exactly hard work or boring so I can easily see me working wayyyy into my 70s (assuming I make it that far!).

I'd stay as you are for now then. When you get closer to knowing what you want to do with the fund you could look at making appropriate changes.

Also, if you have kids remember that pensions are free from IHT.

[Hoofy]

JulianPH said:

Hoofy said:

Thanks. I've not even considered retiring. And my business is not exactly hard work or boring so I can easily see me working wayyyy into my 70s (assuming I make it that far!).

I'd stay as you are for now then. When you get closer to knowing what you want to do with the fund you could look at making appropriate changes.

Also, if you have kids remember that pensions are free from IHT.

Thanks. Didn't know the latter. Not that I have kids yet!

[Hoofy]

bhstewie said:

Hoofy said:

Oh, that's quite high on the supposed risk side? (Asking not telling!)

It's a standard Royal London group plan

https://www.royallondon.com/strategyfactsheets/str...

Vanguard and others will have an equivalent i.e. https://www.vanguardinvestor.co.uk/investments/van...

I must admit I noticed this thread as I keep wondering whether to explore my options.

Fair enough.

I'm dabbling with an S&S ISA (up 4% over 30 days which means I obviously am a trading god) but it got me thinking about my pension.

[JulianPH]

Hoofy said:

Fair enough.

I'm dabbling with an S&S ISA (up 4% over 30 days which means I obviously am a trading god) but it got me thinking about my pension.

Not wanting to put you off, but if you can go 4% up in 30 days you can equally expect to go 4% down in the same time period.

If you can do this consistently then can I be the first person to offer you a very highly paid job!

[Hoofy]

JulianPH said:

Hoofy said:

Fair enough.

I'm dabbling with an S&S ISA (up 4% over 30 days which means I obviously am a trading god) but it got me thinking about my pension.

Not wanting to put you off, but if you can go 4% up in 30 days you can equally expect to go 4% down in the same time period.

If you can do this consistently then can I be the first person to offer you a very highly paid job!

There was so much tongue in cheek in my post that I looked like I was binge eating marshmallows.

[anonymous-user]

bhstewie said:

stuff

Seriously IMO, numbers like 0.5% and 1.0% are so small they might as well be 0%.

Imagine a cake on the table in front of you. If somebody said, "Would you like a slice this cake?" would you ever reply, "Yes, cut it into 100 thin slices and I'll have one of them please....."

[bitchstewie]

rockin said:

Seriously IMO, numbers like 0.5% and 1.0% are so small they might as well be 0%.

Imagine a cake on the table in front of you. If somebody said, "Would you like a slice this cake?" would you ever reply, "Yes, cut it into 100 thin slices and I'll have one of them please....."

No argument there, ask Royal London not me

[Maxf]

bhstewie said:

rockin said:

Seriously IMO, numbers like 0.5% and 1.0% are so small they might as well be 0%.

Imagine a cake on the table in front of you. If somebody said, "Would you like a slice this cake?" would you ever reply, "Yes, cut it into 100 thin slices and I'll have one of them please....."

No argument there, ask Royal London not me

Ah, but if you have 100 slices of 100 cakes and one happens to have dog poo as icing, it doesnt matter as much

[NickCQ]

JulianPH said:

Not wanting to put you off, but if you can go 4% up in 30 days you can equally expect to go 4% down in the same time period.

And then you’d be down 0.16%! Compound interest is a bh

[Hoofy]

NickCQ said:

JulianPH said:

Not wanting to put you off, but if you can go 4% up in 30 days you can equally expect to go 4% down in the same time period.

And then you’d be down 0.16%! Compound interest is a bh

Well, you bhes can suck it. I'm up 5% now!!

Edit: 6.8%!!

Edited by Hoofy on Friday 11th May 10:04