Author Topic: Aviva pension choice  (Read 1239 times)

C-Fish

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Aviva pension choice
« on: February 15, 2019, 04:49:25 AM »
Hello - first time post! My work pension is with Aviva and there are a few options I need to consider:

The default scheme means funds into a managed "Mixed Investment 40-85% Shares". Annual charge = 0.43%. This fund is around 80% shares with 28% in UK equities. This seems quite a high allocation to UK to me... as a rookie to this...

There is the option to move to some trackers with lower charges but not so much choice:

BlackRock 50:50 Global Equity Index Tracker (currently 44% UK shares) and the BlackRock World (ex-UK) Equity Index.

I'm trying to work out if it is better to get out of the default scheme and into these trackers, if possible investing into both to try and get more balance...

I understand that there is also the option to move funds from the work pension to a SIPP where I would have more choice, but this feels a bit advanced for me at this stage!

So - my questions - Am I right in thinking I should move to lower annual cost trackers if possible? (I'm trying to find out what the cost will be for these)
And also, am I right to be wary of an over allocation to UK equities?

Any advice much appreciated.
« Last Edit: February 15, 2019, 09:08:51 AM by C-Fish »

PhilB

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Re: Aviva pension choice
« Reply #1 on: February 15, 2019, 09:49:29 AM »
It all comes down to your personal attitude to risk, and how long you are away from retirement.  If you are say 25 and therefore won't be able to access these funds for well over 30 years then I personally would just be looking at for a cheap global equity tracker.  You might have to mix and match to achieve that blending an ex-UK tracker in with the home-biased 'global' tracker. 
My personal experience is far too long in 'default' funds before I started to take an interest in the subject and switched all future contributions.

 

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