How to find pension investments to suit your needs

1 October Reading Time: 4 minutes

Today, consumers face a constant barrage of choices. Whether choosing between a brand of chocolate or car insurance providers, Britons are constantly weighing up different options to find a service or product that best suits their needs. And it is no different when it comes to pension investments. 

Indeed, there are a plethora of retirement investments for individuals to choose from, be they traditional stocks and shares or alternative assets such as property and classic cars. Whilst some savers prefer to put their investment decisions in the hands of pension fund managers or wealth managers; others prefer to take a more active approach and decide exactly where their money goes. 

So, how can such individuals decide which type of investment suits their needs and will help them to achieve their retirement goals? 

Consider risk appetite

All investments come with an element of risk. However, there are some that are riskier than others.

Rather than being side-tracked by the prospect of high returns on investment, it is important for savers to consider the potential risks and costs involved. As such, individuals must calculate their risk appetite before investing their cash.

This can be calculated by conducting a thorough assessment of one’s finances, where an individual identifies the acceptable boundaries for risk. For example, they must determine how much of their investment they would feel comfortable losing, should its value decrease. Other considerations include how much of a loss they are prepared to take, without it affecting their ability to sustain their current lifestyle.

This assessment will help savers to discover their risk appetite and, more importantly, find investments to suit their needs. For example, someone with a low-risk appetite may opt for investments that offer modest returns but are less sensitive to market fluctuations, as this would likely result in steady growth over time. 

Flexibility in investments

Another factor to consider is the flexibility some investments can offer. Indeed, in this current economic climate, an individual’s financial situation could change rapidly, meaning they may need to access immediate cash to sustain their lifestyle. And some investments do not offer such an option. 

Take, for example, property or a classic car. Whilst the market value of these investments may be high, they are illiquid. This means that they cannot be readily sold or exchanged for cash, which can result in such assets having to be sold below market value if the owners have an immediate need to retrieve the funds. 

That isn’t to say that such investments are always sold below market price, provided that the owner is happy to bide their time for an appropriate buyer to purchase their assets at market price or higher. However, given the need for flexibility and obtaining cash from assets quickly, which many have required over the previous year, savers should think twice before committing to such rigid investments. 

Seek advice

Finally, seeking independent financial advice before committing to pension investments is vital.

Indeed, our team of advisers at My Pension Expert offer a thorough analysis of clients’ finances, as well as their financial goals in retirement, to determine the most appropriate investment strategy. In some cases, this may result in clients pursuing the discretionary fund management service provided by our partner, LGT Vestra. In other cases, our advisers may recommend more traditional retirement investment strategies – it all depends on the specific needs and appetites of clients.

There are so many pension investment options available to savers, and it can be difficult to determine which ones complement different strategies. As such, it is vital that Britons seek independent financial advice before they make a final decision. This may enable them to develop a pension investment portfolio that allows them to achieve the best possible retirement outcome. 


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