What would be a good diversified fund to invest in for my retirement?

13 October 2022

Question by Paul

Hi, I’m almost 60 and hoping to retire at 65. I have a workplace pension which I regularly contribute to. I’m considering opening a stocks and shares ISA from scratch in addition where I could make regular monthly payments. What would be a good diversified fund to invest in where my money could grow for a minimum of 5 years and will take me into later retirement?

Answered by Boring Money

Hi Paul,

Thank you for your question.

Although I cannot recommend specific funds/advice here, the information below will help.

As you're over the age of 55, you can access your pensions now. Given the tax advantages that pensions have over stocks & shares ISAs, I would question why you're seeking to open a Stocks & Shares ISA at all.

You can hold very similar investments, if not the same, with a pension scheme. This will depend on your workplace pension provider. You can then contribute a maximum of 100% of your earnings, or £40,000 - whichever is the lowest. So unless you're hitting these maximums, a Stocks & Shares ISA may not be required.

With the new flexibilities offered by pensions, you can access your funds in a similar way. Different tax issues, but overall a pension normally offers favourable tax advantages.

That said, if you are opening an ISA then please do your research. The diversified funds you seek will depend on your attitude towards investment risk. If you're doing it yourself, you will need to DYOR. Alternatively, a financial adviser like ourselves may be able to help.

I hope that helps for now.


Answered by

Boring Money