Securing an income for later in life is one of the key financial responsibilities of your lifetime. The money you put away in pension pots or personal savings ensures that you have a comfortable retirement. This means that any pension investment choices must be made wisely. Make sure that you’re clued up on the basics with our pension investment tips.
Consider your situation
You should take into account a number of factors before making any pension investment. Make sure you think about your:
- Age
- Health
- Financial dependents
- Pension pot size
- Other forms of income
Know how much is in your pension investment pot
Whether you’re risking it all or spending a small amount, make sure you count every penny before investing. You need to ensure that even in a worst-case scenario, you are prepared financially.
Know the risks
There are risks with every investment, no matter how safe they seem. They may underperform and deliver small returns. Make sure you’re financially stable enough for any outcome before taking a risk.
Consult with a professional
Consider a consultation to reduce risk. While you may be savvy, an expert knows best. An adviser can also guide you every step of the way. They can also help you review your pension investment on a regular basis.
Self-invested personal pension
A SIPP, or self-invested personal pension, is another option open to those looking to invest their pension pots. This, however, is an option that should only be considered by savers with larger pensions and more experience, as the risks are generally much higher.
Have you been offered a Sipp unsuitable for your needs? If you believe you were mis-sold a pension investment, get in touch today.