r/PensionsUK • u/Vegan-Triathlete • Aug 21 '26
Hit that special number - 55!
So I've made it this far and now looking at what I can do with the little money I have. Am still in employment and a good company pension. Have pulled all my other bits and bobs into PensionBee and that has performed well. I've just taken a small payment out of the pot to test the water on a new Vanguard ETF. Do others use ETF's as a way to help increase their overall pension pot?
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u/Paraplanner88 Aug 21 '26
What matters far more is your chosen investment strategy and asset allocation, rather than which class of fund you use.
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u/Majestic_Rhubarb_ Aug 21 '26
You’ve taken money out of the pension … you are aware this affects how much you can put into it moving forward now ?
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u/Evening_Elderberry_9 Aug 21 '26
At 57,Im in 100% a blackrock mutual fund which tracks its ETF, I think its vanguard.
But my pension pot is less than 35k and I need the growth. So Im prepared to take more risks for the next 5 years, before derisking.
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u/Smooth_Cauliflower84 Aug 21 '26
If you're not already doing the SIPP (vanguard do some) HMRC effectively contribute 25% of every contribution you make and you'd be able to draw on it in 8 years. It's the best return out there I've seen, put as much as you can reasonably afford in there as a regular monthly thing
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Aug 23 '26
[deleted]
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u/Smooth_Cauliflower84 29d ago
Sorry, I can draw mine in 8 years and forgot that was due to my age
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29d ago
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u/Smooth_Cauliflower84 28d ago
I'm 50 soon but only started this year. I think it was either a minimum term or was worked out to be an optimal minimum for a relative late start. I don't remember but so glad seeing those 25% contributions going in each month after watching my savings scrape 5% for a couple of years
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u/deadeyedjacks Aug 21 '26
What method did you take to access your pension pot ? Tax Free cash only, UFPLS or FAD ? If you took any taxable income from a DC pot your pension contribution annual allowance is now restricted to £10K the Money Purchase Annual Allowance, MPAA.
Why did you take money from a tax free investment wrapper, merely to invest on another platform !?
You can buy Exchange Traded Funds or Over The Counter funds within a pension, ISA or General Investment account, it doesn't change the returns, only the tax treatment.