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Factors in what pension you should choose

Once you have decided that you want a private pension, you will need to make the right choice. It is often said that the right pension for one person is totally wrong for another. So what is it that changes the dynamic.

One of the biggest factors in choosing a pension and the funds is how the investor (ie. you) perceive risk and reward, and how far from retirement they are. The cautious investor will want their funds in low risk investments and will want gradual accumulation of a pot of money. A more risky profile might want more racy funds liable to go up and down, and potentially accumulate faster.  A financial adviser can talk through your risk profile and ensure that the funds and pension chosen match your profile.

Generally speaking the further you are from retirement the more risk can be taken with your pension investments. As retirement approaches funds should be chosen for stability to ensure that the fund grows and does not haemorrhage.

Other factors to consider include death benefits, flexibility, charges and fees.