Fund mix for PRSA

A relative is 57 and is moving his pension fund to a non standard PRSA. What mix of equities and stocks would you recommend. He will likely work for another 10 years. Is 80% global stocks a good idea ?

Without knowledge of his financial and personal situation it would be irresponsible to answer this question

He runs his own business. Will only get half an old age pension because of historical messed up PRSI contributions. Has 300k going into PRSA. Anticipates adding additional 30 k per annum for next 10 years. Little other savings or investments other than kids savings which should be enough to fund second level / college. No debts. Has a home. So 10 year horizon on PRSA.

Rather than thinking in percentages, I prefer to think in terms of multiples of anticipated annual spending.

So, at retirement, I would hope to have around 10 years of anticipated spending, over and above any State contributory pension, in “safe” assets (cash, bonds) with the balance in “growth” assets (equities, real estate).

So if your relative anticipates spending €25k per year, they would aim to have €250k in safe assets at retirement, with the balance in equities.

Your relative could gradually de-risk the portfolio over the next 10 years to achieve this allocation.

For Comparison
The Vanguard Target Date series gradually moves you from Stocks to Bonds as you near retirement.
This is how they manage the de-risking process.

TR Fund Asset Allocations - February 2021



They start at 90% stocks and only start to reduce that 20 years from retirement (2040 on the table).
At 10 years they have roughly 68% Stocks 32% Bonds (2030 in the table).
At retirement they have roughly 50:50 Stock:Bonds (2020 in the table).
5 Years into retirement they have 35:64 Stock:Bonds (2015 in the table).
The minimum amount of stock, (even 25 years into retirement), that they have allocated to stocks is 30%.

There's also an argument against "lifestyling", or at least the usual style employed, when many people will be rolling 75% of their pension pot into an ARF and longevity is increasing.