My background- I am 36 years old and planning to retire latest 55 years old.
So I changed me pension allocation for future contribution to higher risk with 80pc in the world equity index 3 (ex-Uk) fund and the rest between emerging markets index fund / smaller companies index fund and uk equity index 3 fund. This has led to a huge gain in the last 7 months or so where I’ve managed a 16pc increased vs the usual 7 pc I was making over last 10 years at my company work for.
My current pension allocation which was originally 100pc in a 2055-2060 target date fund 3 is still as it is ( so basically kept it safe as I’ve banked this money but taking the risk on full equities on future contributions which obviously starts small (£700 month I pay in total).
Basically is it worth me distributing my old pension pot into more equities ? So instead of leaving the old pot in a safe 2055-2060 target fund 3 where basically 90pc of its value is, is it worth doing say 50pc in equities. And leave the 50pc in the 2055-2060 target fund whilst I’m young ?
The reason I didn’t change the current pot allocation 7 months ago was because I thought market would drop but it’s gone up, obviously timing market rarely works but with say £70k current pot I wasn’t sure what to do as it’s a bigger chunk to play with rather than dollar cost averaging £700 contributions monthly like I’m doing which is safer
So I changed me pension allocation for future contribution to higher risk with 80pc in the world equity index 3 (ex-Uk) fund and the rest between emerging markets index fund / smaller companies index fund and uk equity index 3 fund. This has led to a huge gain in the last 7 months or so where I’ve managed a 16pc increased vs the usual 7 pc I was making over last 10 years at my company work for.
My current pension allocation which was originally 100pc in a 2055-2060 target date fund 3 is still as it is ( so basically kept it safe as I’ve banked this money but taking the risk on full equities on future contributions which obviously starts small (£700 month I pay in total).
Basically is it worth me distributing my old pension pot into more equities ? So instead of leaving the old pot in a safe 2055-2060 target fund 3 where basically 90pc of its value is, is it worth doing say 50pc in equities. And leave the 50pc in the 2055-2060 target fund whilst I’m young ?
The reason I didn’t change the current pot allocation 7 months ago was because I thought market would drop but it’s gone up, obviously timing market rarely works but with say £70k current pot I wasn’t sure what to do as it’s a bigger chunk to play with rather than dollar cost averaging £700 contributions monthly like I’m doing which is safer