Balancing risk & reward
All investment involves a degree of risk. It’s important that you understand and are comfortable with the risks you're taking before making any investment choices.
Investments that offer the potential for higher rewards often come with higher risks, which means there’s a greater chance of losing your money.
With lower-risk investments there is less chance of losing your money, but the potential for reward will usually be less.
Understanding how you feel about investment risk
The way you feel about investment risk will depend on your circumstances and, often, your personality. It’s not unusual for someone’s attitude to risk to change as they get older so it’s important to regularly review how your pension savings are invested.
The Your guide to investing includes a step-by-step guide to help you understand all the things you should consider before making any investment decisions.
Understanding how you feel about risk will help you to decide whether you’re comfortable making your own investment choices.