Retirement is one of the most important phases of your life. So you want to be sure that you have enough in your pension fund to live as you want. If you are looking for a way to make your money work harder, it may be time to think about how you invest your pension fund.
Why should you invest your pension fund?
Risk
Your investment options
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Why should you invest your pension fund?
There is usually one major factor that makes investing your pension different to investing your other savings – time.
Most of us have some short term savings and the risk we take on is influenced by our need to have quick access to those savings. However, for most of us our retirement is still a long way off. So although leaving your money lying in a bank account might seem like a safe option for your savings, it might not be enough for your pension fund as it won’t help it to grow much.
The good news is that you have other options. You can put your money to work by investing it.
That way, you can potentially grow your pension fund so that it keeps up with inflation (the rising cost of living). And you could also see some real (and tax-free) return on your investment.
Risk
Yes, investing will mean taking some risks. The higher the risk, the greater the potential rewards AND the potential losses. Fortunately, you can spread your risk to protect your pension fund.
Invest your money in different assets that won’t have their ups and downs at the same time. It is called diversification. We like to think of it as not putting all your eggs in one basket.
Try our Investment Suitability Tool to help you figure out your attitude to risk. Then work with your Financial Broker to find funds that suit your needs.
Your investment options
What one investor takes in their stride will make another nervous. So at Friends First, we have a range of over 40 investment funds that cater to different levels of investment risk.
Readymade portfolio funds
Sit back and let our highly experienced fund managers take care of your pension investments.
Pick your funds
Work with your Financial Broker to handpick the funds you want to invest in.
Do it yourself
Take your pension into your own hands and choose exactly where to invest.
Lifestyle strategy
Choose an investment option that helps to manage your risk as you get close to retirement.
Talk to an expert
Investing your pension is a big decision, so talk to an expert to discuss what will work best for you.