Introduction
How should I invest my pension contributions?
Before you choose what fund to invest in you should ask yourself a few simple questions such as...
What’s my attitude to risk?
and
What sort of return do I expect on my contributions?
Your attitude to risk is perhaps the most important factor affecting the funds you choose. An example of a higher risk investment is an equity fund, which is a fund that invests in company shares. A low risk fund would be a cash fund, which mostly invests in deposits and short term bonds. High risk funds usually have more potential for long term growth, so the more risk you are willing to take with your investment, the greater the chance you can earn higher returns. However, this also means that there is a higher chance that your investment will not perform well, especially in the short term. Given these facts, you will need to decide how much risk you are willing to adopt.
Once you have established your own attitude to risk and return then you can select a fund that is suitable for you. Canada Life has a range of pension funds and pension fund managers available for investment to cater for all types of investors.
Depending upon the type of pension plan you have, your attitude to investment risk and the amount you can contribute towards your retirement plan there may be other types of pension investment available to you such as self directed pensions or pension mortgages.
- Why plan for retirement?
- Why does a retirement plan make sense?
- What retirement options are there?
- What happens when I retire?
- How should I invest my pension contributions?
- Canada Life Pension Funds
- Why start a retirement plan with Canada Life?
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