Risk and return
Do you like a casual stroll on a Sunday afternoon or would you prefer to be bungee jumping over white water rapids? Everyone has their preferences. Where you invest will depend on how much risk you want to take.
Higher risk = higher reward?
It might take a while, but in general the more chance your investments have to go down or up, the higher the potential rewards. If you have a long time before retirement you might want to take more risk with the aim of getting better rewards.
Is safe boring?
Not always! It’s better to protect the savings you have made for your pension than gamble them away at the last minute. Cash might not have the attraction of higher rewards but it does have a better safety record. Although it is important to remember that the returns on cash may not always keep pace with increases in prices. As you approach retirement you might want to protect the value of your savings and lower risk investments are a great way of doing this.
Want to change your investments?
Request or download a Switch Instruction Form.