How to choose the right pension funds for you

Before choosing a pension fund, it’s important to think about how it could affect your retirement goals. The best pension fund for you is always one that caters for your individual needs and requirements, allowing you to enjoy the happy retirement that you deserve.

Here you’ll find some more details about what kind of investment options you have available to you and which considerations you can make before settling on a pension provider.

What type of investor are you?

Your capacity to take on risk will ultimately determine what kind of investor you are and which fund will grant you the return you’re after.

The two most common types of investors are the passive investor and the active investor; the former is usually someone who would rather take a more hands-off approach to their pension investment, preferring to put their money into a fund that doesn’t require too much management or maintenance.

An active investor tends to prefer to closely monitor their investments, often in the hope of cashing in on the best market conditions at any given time.

It’s worth noting that passive investing isn’t risk-free, and many passive fund investment options can incur a fair amount of risk. Similarly, active investors may choose to invest in lower-risk funds.

Generally speaking, people tend to invest in riskier funds in the hope that they’ll achieve a higher return, but it’s important to recognise that it’s your savings on the line, and you should only ever invest what you can afford to lose. That said, pension funds are historically a safer option when it comes to investing in the stock market. Although, past performance is not an indicator of future return.

What’s important to you?

Choosing the right fund may be more than just a matter of money for you. For example, if you have a passion for championing sustainability, you might want to invest your pension in ESG (environmental, social, and governance) funds.

If your investment criterion includes moral elements, then you might find the ESG fund to be a more enticing option. Thinking about your personal values as well as your monetary goals could be a good way to settle on the fund that offers you the complete form of return.

What are your goals?

It’s important to think about the long term when investing in your pension fund. Do you want to create your own portfolio and diversify your investments for maximum coverage? Perhaps you just want to choose a single fund and leave the management side of the process alone. Whatever you hope to achieve, it’s worth putting your retirement goals at the front of your mind.

Our funds

At iSIPP, we offer a range of wonderful investment opportunities to suit your needs as an investor, so whatever your preferred investment style and whatever you hope to achieve with your pension, we have the option for you.

Whether it’s ESG funds, Shariah funds, Ready-made funds (designed to take the hard work out of investing) or a bespoke choice fund tailored to fit your specific needs, we believe that you should have complete control over your money.

All of our funds are FCA regulated, highly secure and FSCS protected, so whichever choice you make, you can rest easy knowing your money is safe.

We believe you should be able to make your own decisions when it comes to investing your pension – it’s your money, after all. We can give you the tools, the fund options and the platform to help you do this with ease and from anywhere in the world.

You can take a look at our fund options here.

Investing your pension with iSIPP

We always put our customers first, so if you have any questions at all about our service, make sure to reach out – we’re here to help. The choice is yours when you invest with iSIPP, and we will guide you in whichever way will help you make the best financial decisions when it comes to your pension. Plus we are FCA regulated so you can be confident your money is in safe hands.

If you wish to consolidate your pensions and invest in a fund right for you, then it’s better to start sooner rather than later, as this is the best way to maximise your potential returns.

Disclaimer 

The content of this article is for general information purposes only and should not be construed as legal, financial or taxation advice. You should not rely on the information contained in this article as legal, financial or taxation advice. The content of this article is based on information currently available to us, and the current laws in force in the UK. The content does not take account of individual circumstances and may not reflect recent changes in the law since the date it was created. It is essential that detailed financial and tax advice should be sought in both jurisdictions and any legal advice, if required.

This notice cannot disclose all the risks associated with the products we make available to you. When making your own investment decisions it is important you understand that all investments can fall as well as rise in value and it is possible you may get back less than what you have paid in. You should also be satisfied that any investments you choose are suitable for you in the light of your circumstances and financial position. You should seek financial advice if you are not sure of what’s best for your situation.