If you’re auto-enrolled into a workplace pension scheme, your money will go by default into an attractive-sounding ‘lifestyle fund’. This does not mean it’s tailored to meet your leisure and holiday aspirations. It means that in the 10 year or more countdown to ‘retirement’ (probably 67), they will move you to lower risk investments and cash. This is all based around the now-defunct idea that you’ll trade in your pension pot for an annuity, which almost no-one would nowadays be advised to do. Most should keep their fund invested and drawdown from it; which means you should stay in at least medium risk funds for the long-term and not let someone else ‘lifestyle’ you. If the cap fits, talk to an adviser.
This month’s Interview: Nigel Clarke – Protection Specialist
Join us as we speak with John Butterworth, independent financial adviser at Philip James Financial Services. We learn about John’s background and talk about savings, investments, and how we can help manage your pension.