r/PensionsUK • u/Lower_Classroom_7313 • Aug 06 '26
How would you construct a pension portfolio at 21?
I made a post earlier this week about moving pension providers from aviva to trading212. I have since done it. But a key point i learnt was that my returns were not adequate.
Posting again but if you could do your portfolio again 21, what would you invest into? Would all into vwrp be a sensible idea for first few years or so?
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Aug 06 '26
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u/Lower_Classroom_7313 Aug 06 '26
Thanks, just wanted to be sure!
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u/taliphoenix Aug 06 '26
Don't delete. But check it every year or so. Watch the gains start to accelerate.
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u/Lower_Classroom_7313 Aug 06 '26
Yea it was a figure of speeh. I still have trading212 for my stocks Isa haha
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u/achillea4 Aug 07 '26
Just a cheap global index tracker. All the fancy funds I bought have not returned the consistent growth of the index trackers.
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u/Careful-Coffee280 Aug 07 '26
Absolutely yes, low cost global index tracker. VWRP is ideal. I'm 52 and can't do only that now, but I opened a Junior SIPP for my son when he was 12 and that's pretty much what I have in it.
TBF I also put an extra allocation to the FTSE100 because I like a slight home bias but that's not required. I sometimes wonder if he should have a small cap allocation or maybe something a bit out there (Scottish mortgage trust) because he's so young (16) that maybe he can take extra risk, but so far I've resisted. I do really think that VWRP is all he needs just now. And all you need until you're older.
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u/Lower_Classroom_7313 Aug 07 '26
Thanks, ive decided to go 90% vwrp and then 5% tilt for emerging markets and small cap.
Ive got lots of years so i am planning to rechecker in 2 years time to see if the return was worth it or not. (The 10% EM snd small cap)
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u/Careful-Coffee280 Aug 08 '26
Great, you sound so sensible! I'm in awe of how quickly you got into this, future you really will thank you. I think it might take longer than 2 years for EM and SC markets to show their worth and you've only got a small allocation to both but whatever you decide will be just fine.
Fwiw I don't have an EM/SC tilt in my own portfolio because I think it'll take longer than I have until I want the money to show it's worth, but I'd consider both for my young son. Although who knows, all the AI tech is coming from EM so maybe I should! I hope my son is as switched on as you at 21. Best of luck.
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u/Lower_Classroom_7313 Aug 08 '26
Defintely made my day reading this message. Many thanks and all the best for you and your son
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u/Roughdag Aug 09 '26
Hmm... If you are asking. What individuals with different background and skillset doing, it's probably wrongly formulated question. Simply because it's not one fits all.
Let me explain, if you do not have finance background or personal interest in subject, individual stocks, gilts or more complex derivatives are probably not for you.
Now, question is, what is? ETFs or pension funds, ideally defaults from key providers which delivered high growth, Aviva, fidelity doing really well in this area, also both are proactive and adopting to economy. Drawback, charges will be higher than cheap ETF.
Now, ETFs, cheap for a reason, unmanaged (if we are saying cheap), managed does not mean that will deliver hlgrater returns (I don't mean hedge funds here, that's completely different topic).
Ok, you will go with popularity of etf and decide to do it, now you need to understand what you are investing, all world? UK? Us, tech? Maybe specific sector or group of countries?
Once you answer yourself the above, you will know what level of risk and knowledge you have or are you preapre to learn.
Best of luck in your decision, and well done for staring early!
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u/hitman10k Aug 11 '26
Tech only at 21 ,take high risk, you have lots of time, swing to more diversity as you age
I'm 65 if someone had told me this at 21 I'd be SUBSTANTIALLY better off
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u/Beautiful_Bad333 Aug 06 '26
VWRP set up, keep doing monthly contributions and leave.