Advice on Pension Fund Allocation

[Teocali]

Looking for some validation, I believe I am on the right lines but want to check my planned pension adjustments.

I have 5 pensions across 3 providers. I am going to change this to 2 providers due to fees with one provider. Fees on other two platforms are below 0.35% all inclusive so they don't feel worth the hassle of changing.

Best case I am 18 years from touching these so I want to be fully invested in the markets. I am OK if they nosedive 30% next year.

My plan was to replicate VWRP as close as possible, but my fund options are limited. Below is my planned split - I would appreciate any advice.

Essentially aiming for 96% FTSE World (Ex UK), and 4% UK exposure. My plan to do this is:

56% - L&G World Ex UK Equity Index PMC Pn 3 (https://tinyurl.com/3j67zwxb)

40% - Aviva Pensions International Index Tracking S2 (https://tinyurl.com/7kcbm56d)

4% - Aviva Pensions UK Index Tracking S2 (https://tinyurl.com/585wcb23)

Split between Aviva and L&G trackers is just because I have protected retirement age with Aviva and L&G are my current employer pension.

I have put off doing this, as I have tried two financial advisors who offered to support for a one time fee, but ultimately both just wanted to have a meeting and push me down their managed route. Had I taken this action 12 months ago I would be much, much better off.....

Really appreciate anyone taking the time to read. I am 95% sure I am on the right path, but the overall value (to me) is fairly large so I would appreciate feedback!

[mikef]

For various reasons I have kept four separate DC pensions. I did think this would be more difficult, but in fact HMRC have been very good about tracking them separately and applying the correct tax (my personal allowance is applied firstly to my state pension and then to an annuity that I also have, so doesn’t impact the DC pensions).

What I like is that I can track the performance of the different provides and consider moving if needed

If I were to consolidate four DC pensions, how to know which provider will provide the best performance for a given risk profile?

[Craikeybaby]

I consolidated pensions this year, I can't advise on the funds, but all I can say is don't expect it to be a quick process...

[Teocali]

Craikeybaby said:

I consolidated pensions this year, I can't advise on the funds, but all I can say is don't expect it to be a quick process...

It honestly cannot be worse than the financial advisor I had to deal with, but appreciate the heads up!

[darreni]

mikef said:

For various reasons I have kept four separate DC pensions. I did think this would be more difficult, but in fact HMRC have been very good about tracking them separately and applying the correct tax (my personal allowance is applied firstly to my state pension and then to an annuity that I also have, so doesn’t impact the DC pensions).

What I like is that I can track the performance of the different provides and consider moving if needed

If I were to consolidate four DC pensions, how to know which provider will provide the best performance for a given risk profile?

You’d need to pick your own funds/ investments from those avaliable with each provider then chart and backtest to check historical performance.

It would be a ballache to do. I used to do it was an IFA as part of client presentations/ recommendations.

[LordGrover]

Craikeybaby said:

I consolidated pensions this year, I can't advise on the funds, but all I can say is don't expect it to be a quick process...

At the other end of the spectrum, I transferred an old Pru pension into my workplace People's Pension painlessly. I think it was two online forms and about three weeks before it appeared in my account.

[Craikeybaby]

Some aspects have been OK, the biggest (6 figure) transfer from a dormant pension was fine, but most other things have been slower than expected.

[VR99]

I think the approach broadly makes sense and have done similar in the past.
For simplicity I consolidated all my old DC pensions into a Fidelity SIPP (take advantage of capped platform fees for ETF's) but before you transfer/consolidate, worth considering any protections or or other benefits you have with the existing schemes.
I am due to review wife's pensions (at least 4/5 ex-employer DC's) but not planning to move any for now as it can be long-winded with some schemes so taking the lazy approach of just tweaking existing funds.

[darreni]

VR99 said:

but before you transfer/consolidate, worth considering any protections or or other benefits you have with the existing schemes.

This is the most important step - understand exactly what you already have in relation to avaliable fund choices, fund charges/ fees, platform charges and provider charges and fees, plus protections and or guarantees.
Once you have this information you can decide if the current scheme(s) meet your requirements. If it/they don’t, then start looking at alternatives.