Pension - lifestyling fund

[gonesolo]

I have a private pension which was originally set up with all funds invested in a 'UK All company tracker lifestyling fund'. They wrote to me to say that I had the option to change funds if I wanted to as different funds are better at different times of life. They offer a range of funds to choose from but I am rubbish at this sort of stuff. Having done a google it seems that lifestyling funds might be better closer to retirement as they are less risky (I am 45) but I am pretty risk averse. Does anyone know if a lifestyling fund is not the best choice at this age of life?

I thought a lifestyle fund was like Vanguard whereby you can have a different weighting to bonds and shares or with a defined pension year in mind.

If your fund really is all UK companies, I would seriously consider diversifying.

The idea behind lifestyling is for your investments to be gradually shifted down in risk level over time, so that when you get towards the target end date they will be more protected against sudden falls in the stockmarket. There is a balance to be struck between taking higher risk in order to chase more capital growth and lower risk to minimise potential losses. Lifestyling as a mechanism has its downsides but can be very suitable for the more risk averse investor.