DC Pension - Question re Switching Funds

[The Intern]

Hi all, I have an active DC pension i.e. both employer and myself make monthly regular contributions. DC fund in place since May 2020. The fund is currently invested in Zurich's Aspire Moderate Growth Fund (45% Equites, 32% bonds + misc). I'm about 20 years away from retirement and I'm planning to switch to a higher equity based fund (either High Growth fund which has 71% equities or the Passive Global Equities (100%)).

I have contacted Zurich and they have asked whether I want to transfer the existing balance and all future contributions or just the future contributions?

I'm wondering should I leave the existing contributions in the existing Moderate fund and just direct all new contributions to the new fund? My concern is with the existing units in the existing fund i.e. I bought for X and should just leave well alone.

I'd welcome any thoughts anyone might have! Many thanks

 

[John Locke]

I am not a financial adviser, but if it was me, I'd transfer everything into the 100% equities fund. You are still a long way off retirement.

 

[Sarenco]

I'm wondering should I leave the existing contributions in the existing Moderate fund and just direct all new contributions to the new fund?

If anything, it probably makes more sense to do the opposite, ie transfer the existing fund to the higher equity fund, with new contributions going to the lower equity fund.

However, with 20 years to retirement, I would personally put 100% in an equity fund.

 

[The Intern]

If anything, it probably makes more sense to do the opposite, ie transfer the existing fund to the higher equity fund, with new contributions going to the lower equity fund.

Thanks - excuse my ignorance but why does it make sense to do the opposite as you state above?

 

[Sarenco]

Thanks - excuse my ignorance but why does it make sense to do the opposite as you state above?

Well, typically people gradually make their portfolios less aggressive as they age, whereas what you are proposing would have the opposite effect.

But I still think you should be 100% in equities at your age and stage in life.