I have a personal pension which I'd like to invest for growth. What's a good course to take?
24 March 2021
Question by Robbie
I'm 61 and fortunate enough to be in receipt of a comfortable final salary pension and pay basic rate tax. I have savings and some cash put aside in ISAs for any unexpected expenses and modest future plans such as holidays.
I also have a personal pension with about £30K which I don't need to touch but would like to invest for growth. What would be a good course to take? I don't want to be in a position where I need to closely monitor funds and, if possible, hand some of this over to my adult children.
Answered by Phil Billingham
Good afternoon Robbie,
This is indeed a good position to be in. We believe that to have a successful retirement, a guaranteed income stream (Final Salary and state pensions), a flexible capital sum, (ISA’s and other savings) and a debt free home works very well, and it appears that this is your position.
In terms of the personal pension, then you may already be almost there. Your current provider may have available one of the low cost ‘Multi Asset’ funds. These are basically ‘Buy and Hold’ in that they are highly diversified, low cost, and are internally rebalanced without any further input from yourself. Vanguard are leaders in this field, but there are others.
Turning to the leaving monies to your adult children, then I strongly suggest you contact your provider and ask them about their ‘Expression Of Wishes’ process. This is because, on your death, the value of the pension does not form part of your estate, and so needs to be separately organised.
It’s important to understand that even if you do decide to make your children the beneficiaries, that does not prevent you from accessing this pension at any point you want to. At 61, there is a long life still ahead of you, so a ‘Reserve Tank’ is a very useful thing to have