Managing your pension portfolio requires a more hands on approach (or more work for your financial adviser) than a traditional UK-based pension scheme, but the benefits far outweigh the negatives.
The key here is adapting your portfolio allocation that comprises your retirement plan or pension to suit your needs. This should be a periodic discussion topic for you and your financial adviser. It usually makes more sense for a young person starting a pension scheme to take more risk than someone who is about to draw their pension. The reason is simple; the early stage retirement fund has much more time to recover from a steeper dip than one that is nearing maturity. Over the longer term, higher risk strategies may provide greater return, though the volatility of the value will be higher. Closer to retirement age, a good financial adviser will look to reduce risk, thus lowering volatility and so lock-in the gain you’ve made over the last couple of decades.
Your financial adviser will understand risk management and have experience with cultivating risk strategies. Also, they will keep up with new products and services and thoroughly research your options for you.
A good financial adviser will have thoroughly planned out your risk strategies years in advance and will be able to advise you quickly and efficiently on how you should proceed.