Your risk appetite and pension choices

Pension changes brought about by the government in 2015 offer more flexibility on how you can access your money and what you do with it. You may want to take more control over where your money is invested while it’s still within your pension plan or after you access your pension savings. The new choices give you freedom to enjoy retirement but also mean you need to consider your financial security as well.

The points listed below are some of the things to think about when you're making decisions about where you invest your pension and how you’re going to take it. Chatting with a financial adviser could help you understand more about your own risk appetite. 

1. Your personal circumstances e.g. how much you can afford to lose

Think about your financial commitments, including any dependants who rely on you for financial support. Could you still meet these commitments if you lost some, or all of the money in your pension?

2. Your financial goals

How you invest your money, how you choose to take your pension, and what you choose to then do with it, will depend on what you need from your money - both now and in the future. Working out your financial goals, will help you when you’re thinking about what to do with your money. 

3. Your personal attitude to risk

How do you respond to increased risk? Risk attitude is likely to change depending what’s going in your life and the world around you. Bear in mind that your attitude to risk might change at different points in your life, such as when you get closer to retirement. 

It's worth getting some third-party advice to help you think everything over.

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