LANDG worksave pension rebalancing

Hi,

I have worksave pension with legal and general thanks to UK nudge unit. Got auto enrolled at the end of 2013. Default fund is L&G PMC Multi-Asset 3

Current XIRR is around 4.99%
Is this a good return?

Would like to know if anyone with LANDG pension and using different funds availalbe there to re-balance regularly.

Thank you.

Pensions are a little tricky as it’s very personal to your level of risk and what you want to do with your pension pot.

I did have a L&G pension with an old firm.

For me personally my pension is very long term, and while I could request bespoke funds it was a real pain for them to assess it for me, I ended up going for their highest risk multi-asset fund which has a stronger outlook but was more volatile. From memory I think it was around 8% annualised volatility, I’ve since moved my pension as I’m not with that company anymore.

If your company offers financial guidance or advice (normally an advisory firm will put the pension plan in place and support it) it’s worth taking advantage of their free (or comp’ed) guidance.

Now is a very tough time for long term investments with the pandemic about and the world banks making the equities market behave unpredictably.

To answer the rebalance question, with these pension providers they will have a note where they automatically downgrade you from one fund to the next lower risk one as you approach retirement age. From memory I think the pension firm we were using started this 20-25 years before retirement and would downgrade every 3-5 years.

That’s why I went for the highest risk, I wanted to try and make the most gains possible before the portfolio automatically started getting more defensive. This is my personal situation though, and pensions are very personal!

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I have a L&G workplace pension, in face I Am in the exact same fund.

I did a lot of reading up on it, although this is not financial advice. Compared to most other funds, it has a very low fee so it is cost efficient. It has a multi-asset approach, and thus did not see as bad as a dip during March as many of the other funds - it performed rather favourably.

I shifted my funds around the last few weeks, but eventually went back to this one. It has a risk range of 3/10 so has a conservative approach with a higher allocation to treasuries and bonds, and a lower one to equity.

Personally, that mimics my DIY approach in my ISA as I feel we are at a very precarious position in the stock market. It is positioned defensively, but with some stock exposure can capture some alpha there as well.

I am intending to stay in this one until after the USA election. If the economy looks stable then, I will move to a higher risk multi asset of L&G with a higher proposition of stock exposure.

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Thank you for the responses.
I looked into moving into different funds based on past performance.
For that I scraped all the L&G pensions funds available to me into spreadsheet, but data did not make sense so I forgot about it.
So of the funds AUM is very small.

This is what one of my colleague said, he said even if he leaves company he is going to stick with L&G.

I haven’t seen any precious metal funds available.

Yes, this is good point, might be able to get online appointment.

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My IFA told me previously that L&G pensions are as good as they come and the fees are very attractive.

He did say that it struck him as odd that I was in a risk 3 category, and he advised me to move to 7 to have more equity allocation as I still got decades until retirement.

For now I find level 3 the best one, given the uncertain economic situation. Will move it to a higher risk one later this year, after US elections.

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I am also auto enrolled in this fund. I was also looking to go to a fund with a higher risk category but couldn’t make up my mind on which one to invest in. It was quite confusing trying to compare one against another, so I gave up, meaning to go back at a later date when my head had finished going round. Having seen what has happened to other funds I am glad I did nothing and stuck with this one.

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Pension providers tend to have horrible interfaces and really don’t give a lot of information, for something which is so important as well!

The FCA does make examples of anyone stepping incorrectly when it comes to pensions which adds to the fear or giving too much information or advice. Plus once you are with a pension provider you are unlikely to switch, they only need to convince your employer to use their service not you!

The good thing is your pension should be as long term as you can manage, meaning you shouldn’t feel pressured to rush a decision.

If your company offers financial advice, or pays for an intermediary pension consultancy firm, I always strongly recommend taking them up on the offer. Pension advice and even guidance can be enlightening even if you don’t follow their recommendations in the end of the day!

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