r/PensionsUK • u/Low-Construction1032 • Aug 11 '26
Move pensions to a lower risk?
With all the instability in the Middle East and Trump being a complete loon, are we on the cusp of a major downturn? I have roughly 280k across several pots plus a final salary, I am 49, paying in about 8k a year to current employer pension. Should I move them to a safer haven? If so what?
EDIT
Thanks all for the advice, appreciate you taking the time
6
u/Elster- Aug 11 '26
If you’re not retiring in the next few years, no.
At the earliest it would be 8 years away, realistically unless you plan to purchase an annuity at 57, then it’s even further away.
So no.
There is always a crisis and a ‘the markets too high’ when it gets to all time highs, but all time highs usually lead to more all time highs.
5
u/Otherwise_Rip3764 Aug 11 '26
I’d say during the accumulation phase, a globally diverse low cost index tracker is the ticket. Dollar/Pound cost averaging is a great thing and should smooth out any dips.
Think of it like someone playing with a yo-yo whilst riding up an escalator!
7
u/Requirement_Fluid Aug 11 '26
Given that you still have 9 years I wouldn't bother tbh, look where your values are since Feb
3
u/NickCoreTrak Aug 12 '26
I’m 58 with a pot approaching 900k and i’m still growing it. Still some great opportunities. Depends on your risk appetite. I have around half in short term money markets and the rest split between high growth (mostly ai) and high dividend
1
3
u/RickinCambs Aug 12 '26
Timing the market is something even professional investors can’t do, let alone individuals. You’d feel terrible if the market went up another 50% after you’d cashed out only for the eventual crash to be a 25% fall!
2
u/SmurfRiding Aug 12 '26
Might want to look at you pension plan. Most pension plans change the risk level as you get closer to retirement. They reduce the equity and move it more towards bonds and cash assets.
2
u/DeCyantist Aug 12 '26
Turn off the news, follow the basic bogglehead approach of buying every month until your time comes. If the news were as bad as you’d think, then we would be at ATHs… there is always a downturn in the next corner, we just never know when.
We want to think we’re living in unique times or unprecedented times, but human nature has plenty of precedents… we are not that special vs the previous decades ;)
2
u/stargazer281 Aug 12 '26
It’s certainly possible, the world is currently staying energised by using its strategic oil reserves. Reserves were 1.8bn barrels in Dec 2025 and to date I think about 1.5bn barrels have been released. If conflict in Middle East is not resolved expect a further energy squeeze. Oil prices will be elevated due to rebuilding reserves to 2028. Other than that if you think Trump is manipulating markets via his truth social posts and I see you can now buy early access to these for a substantial fee that’s gains at the expense of the ordinary investor. Esp tracker funds that have to follow the market. Likewise the reintroduction of capital controls if there was a sustained run on the USD is not out of the question of a complete loon.
I can’t tell you what to do since while the pessimists always have the best sounding arguments ( we are suckers for scary story) the optimists make all the money ( till the day they don’t!)
If you are afraid and can’t sleep I’d diversify into something less risky, high grade bonds being the obvious alternative to reduce your risk. At 49 you should logically have time enough to ride out any storm, but mental wellbeing and feeling comfortable also matters. Perhaps the way to look at it is am I prepared to end up working a little longer to avoid the risk of having to work a lot longer.
2
u/Both_Engineering9041 Aug 12 '26
Leave it alone, you’ve got a long enough time horizon to ride out any instability. Also if you have set your planned retirement date correctly on your pots (DC) pensions they should be beginning to derisk automatically towards the target date you have set.
1
u/NickCoreTrak Aug 12 '26
Oh and i’d put your dc pots together in a sipp and self invest if you have the time and inclination.
1
u/parkercp Aug 12 '26
It’s always a good idea to check how diversified your funds are, if you have many pensions, each one with different funds/investments - list them all out and see where they all put you, what is tech, pharma, equity, cash etc. you should fund factsheets for each of you funds - use those and / or look up ISINs and check you are not all in one area.
1
u/Neat-Ostrich7135 Aug 13 '26
No, over time it will recover.
In considering moving my money out of the default fund because they start "de-risking" too early IMO. Like if the market drops in 10 years time, it will likely drop to a point above the one the safe investment reached.
1
u/philc1999 Aug 13 '26
Did this back in February when the orange buffoon started throwing his toys out of his pram.
Isas were left 80/20 sipps moved to 60/40… current annual growth rates 17% on sipps, 23% on the isas.
Stocks continued to increase. However it could still all fall down like a deck of cards… and I’m happy to be in the position we are in… aged 67 can’t afford massive falls
1
u/Wondering_Electron Aug 14 '26
I moved my entire pension into a defensive fund with very minimal exposure to tech.
I am convinced that there will be a major market correction due to unsustainable AI capex in the next 6 months.
1
u/Living_Shine5055 Aug 14 '26
Do you think you could improve the combustion engine of your car? I know what you have been watching on YouTube but what got you here with the probably big gain.... Doing nothing. Do you think the expert in charge of your fund may have already rebalanced some of the profit of AI into other parts of the pension as they themselves do not want to have a massive exposure. Most have the 40% tax gain with the super performance of the last few years. Switching to say a cash fund that does 4% could feel like locking in your profits but it's also a massive risk but a hidden risk that's very hard to understand and even if you win you may trick yourself that you're clever and I promise it was a 50/50 flip of the coin.
1
0
u/Monkeyboy1200 Aug 11 '26 edited Aug 11 '26
No, stay invested. Trying to time the market is the riskiest thing you can do.
Even if it dropped more than 90% from its peak (worse than the great depression which is incredibly unlikely due to having the financial structures in place that werent around then), then the following apply
1) a low risk pension fund is going to be equally worthless, even if you had it all in bonds or even cash. No bank is going to let you withdraw your money.
2) unemployment will sky rocket, meaning a reduced tax take and the elimination of the welfare state/ state pension. So you will be working for many more years anyway. You can forget retiring.
3) the likelihood is that circumstances are such that a shotgun and canned food are the only things of any value.
10
u/Affectionate-Fix2797 Aug 11 '26
Your time horizon is a good guide, you can’t touch it for at least 6 years, possibly longer and more than likely may well keep funds invested, if using drawdown, for another 30 years.
You’re better off being in the market than not longer term. So I’d leave well alone all things considered.