My pension provider has started transitioning me to their Balanced Lifestyle Strategy Drawdown plan. I am unsure whether this is a good route to go down.
24 July 2023
Question by Emma
Hello, I am 48 and have a number of pension pots from my career so far. One of my pension providers has just written to me to say they have started transitioning me to their Balanced Lifestyle Strategy Drawdown plan, as I approach 15 years to my chosen retirement age of 65 (chosen a while ago).
I assume my other pensions may do something similar. I am unsure whether this is a good route to go down.
My concern is partly, because I have heard a lot about staying more invested in the markets for longer as a route to funding retirement. And partly because bonds have performed so badly recently.
I know you can't offer detailed advice, but is there anything I should think about when deciding what to do?
Answered by Lee Wells
This all comes down to your personal 'attitude to risk' and also what we call 'capacity for loss'.
Lifestyle funds are fine as a default position for investors who neither want, nor need advice, however, it is a bit of a blunt instrument. If you want/need your pension funds to perform in a way that is suited to you, then you should have your fund choices reviewed with that in mind.
Hope that helps,
Managing Partner - Financial Planner
When Lee got his first job in the 90’s his father said ‘you should go to see my financial adviser’ (he didn’t’ know he had one). Lee dutifully went to see him and was converted by the common sense advice he was given on saving and investing for his future. He liked it so much he joined the company so he could help other people learn how to invest. Lee now runs a company passionate about providing value for money advice on a whole range of areas.