How can risk affect your retirement?

Retirement could be more than a third of your lifetime, so it’s important you can maintain a sustainable income during this time. Investing for your retirement can be a risky business. Deciding how much risk to take can be difficult. The more risk you’re willing to take with your investments, the higher your potential return – but the greater your chance of loss.

But not taking enough risk can also be a mistake. Lower risk investments can offer greater security, but lower potential returns. This means you might not achieve your goal of enjoying a comfortable retirement. You need to think about what your long-term goals are and decide how much risk you want to take with your pension savings.