Switching fund - 2 years from retirement?

J

johnE

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Just got a letter from Pension company informing me they are implementing default investment option called a personal lifestyle strategy. My pension is currently 20% Active Managed Fund and 80% Capital Protection Fund. If they don't hear from me they will automatically switch contributions to 100% Personal Lifestyle Strategy which has a medium risk rating.

I haven't a clue what's going on with my pension at the best of times, and this is all beyond me. Should I stay with the current situation or move to the lifestyle strategy.


JohnE
 
You need to talk with your pension adviser.

I'm guessing that this is an Irish Life policy. Based on the info they have on file about you they're trying to organise your holdings appropriately e.g. if they think you'll be taking out €40k in cash as a tax-free lump sum they'll be ensuring you have €40k in a cash fund.

But you need to make sure their file on you is up to date and that you will be wanting to do what they expect.

Pick up the phone.
 
It's pretty standard. As you near retirement, the pension manager wants to reduce the risk that you are exposed to. (You don't want a market crash the day before you retire). As Oysterman says, give them a ring. They will be happy to explain what exactly it means.
 
johnE said:
100% Personal Lifestyle Strategy which has a medium risk rating
Click to expand...

If you are only 2 years away from retirement I'm not sure that a medium risk rating is what you need.

I'd suggest you seek profession advise on this one.

Jim.
 
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