I’m a long time reader of this forum (which I’ve found mostly helpful and always interesting!) but this is my first post.

Background

I retired seven years ago at age 46.

Due to a house move and other reasons, my portfolio has become rather messy and very cash-heavy.

So I want to reset things and make a clear decision on asset allocation that I can stick to.

But I’m going round in circles a bit on how much risk to take and would love some input from others in a similar position!

Portfolio

The total investible portfolio is a bit over £2.5m, split across SIPP, ISA, GIA and cash/ PBs.

On top of this, I have an inflation-linked DB pension from age 60, currently £22.5k pa.

I have one home owned outright, and no dependents/ children.

Income

My plan going forward is to take the basic rate limit of £50,270 a year, which is more than adequate for my needs.

This works out at a withdrawal rate of 1.9%, although that drops to just over 1% once the DB pension kicks in at 60, and again at state pension age.

I’m not great at spending money but I know this is low, so I guess when I need/ want money for one-off spends and luxuries in addition to this, I’ll try and persuade myself to take it and can do so tax free from the ISA!

Question

How should I split my portfolio between equities and lower risk assets?

Part of me says keep it low risk because I don’t need more income and should just aim to keep pace with inflation.

The other part of me says go for it, because I can afford to take more risk.

Or looking at it from a numbers perspective, I’m half way through setting up a ladder of nominal and index-linked gilts to cover my liabilities for the next 15 years. That works out at around £600k or 25% of the total portfolio (after deducting for the DB pension income when it kicks in). To that I’d add say £250k in cash (10%) so we’re starting to approach a 60:40 portfolio at that point. Is that the best starting point?

And are there any other asset classes I should be considering? I would be up for sticking 5% in gold for example, but the price looks too high to be able to stomach it right now I think!

For anyone in a similar situation, what approach have you taken and why? Or what would you do in mine? I’d love to hear your thoughts - thanks in advance!