Figure out investing

Are your pension investments right for you?

When you know how much risk your investments have, you can decide if they're the right fit for you. Are you willing to take more risk for a potentially higher return?

Understand investing

Take a quick, uncomplicated look at how pension funds can work for you.

How pensions invest

Your pension invests your money in funds. These can have different levels of risk. But this can also mean they can offer different levels of potential reward. When you understand how this works, you can make choices about how your pension invests.

Three factors to think about:
Risk   Reward   Timing
Investing involves risk. This means you might end up with less rather than more money. Investing always involves some risk. But how much risk do you take? VS The riskier an investment, the more it can potentially grow over time. But higher risk investments tend to move up and down in value more than lower risk investments. VS Lower risk funds might be a better short term option (say ten years or less) because they tend to move up and down in value less than higher risk funds. Higher risk funds might be better if you’re investing for longer. Even with lower risk investments, you could end up with less than you put in.
How different risk/reward funds perform

This graph shows you how funds with different levels of risk and reward might perform. It’s not based on actual investment, but aims to show you, broadly, how different funds may behave.

 

Lower risk funds

This is an example of a lower risk fund. It doesn’t have as much potential for growth as a higher risk fund. Its value doesn’t move up and down as much, or as often.

 

Higher risk funds

This is an example of a higher risk fund. Over time, it has more potential for growth than a lower risk fund. Its value tends to move up and down more. Also higher risk funds are more likely to make riskier investments. So, they’re more likely to lose you money.

Past performance doesn't mean funds will perform that way in the future. You may get back less than you put in.

Get comfortable with how your pension invests

Find out how your pension invests

Find out how your pension invests

You can see how your pension invests in your last Annual Benefit Statement. If you can’t find yours, log into Money4Life. It’s in your member document library.

Think about changing investments if they're not right for you

Think about changing investments if they're not right for you

If you want to change your investments, you can log into Money4Life and select ‘Change where my funds are invested’.

Money4Life

You can find out about the investments you can choose in your workplace pension scheme’s website. The address is in letters we send you. We can show you how to find it in the link on the right.

Get some good advice

Get some good advice

Before you make any changes to your pension, we strongly recommend you get some professional advice. There will normally be a charge for this. We can help you find advice. Get in touch through your workplace scheme’s website, or use the phone number on letters we send you.

How to find out more

How to find out more

You can find out more about investing and the investment options you have by visiting your workplace pension scheme’s website.

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