There are probably as many different ways to invest your pension plan as you have pairs of shoes in your closet. It can be a bit overwhelming to decipher but luckily there are a lot of options when looking for pension advice.

The choices of investment funds that you want to invest in include company shares, property, and government securities. Your pension advisor or provider will explain all the differences in detail but the two major categories of pensions are either ‘with profit pensions’ or ‘unit linked pensions.’

The first option, ‘with profits’, is invested with a mixture of UK and oversee shares, property, fixed interest and cash. And at the end of the year, your pension will receive a bonus payment depending on the performance of the fund. The intention of the plan is to balance out the fluctuations in the stock market, so within a pension plan the providers do tend to be more caution.

These funds are added to your pension and the value of your funds cannot decline. When you retire, there may be additional funds added if the overall investment portfolio has been positive.

The second option, ‘unit linked pensions’ do carry a little more risk than the ‘with profits’ option because the overall value can fluctuate but although there is more risk, the benefits can be higher. The main types of ‘unit linked pension’ include:

• Managed funds – these are popular because they provide a mix of UK and overseas shares, property, fixed interest securities and cash.
• Specialist funds – these focus on one type of asset such as UK or oversee shares – they are designed more for people who want to make their own investment decisions.
• Tracker funds – these passive funds follow the performance of a particular stock market index such as the FTSE 100. Their value will rise and fall in line with that index.
• Lifestyle funds – savings are place in a tracker fund to start then switched over into a safer, fixed income fund.

If you are interested in a self administered pension scheme, then that is also an option. Your best bet is to contact a pension specialist so that you can go through all the options and make a decision that is best suited for your own personal situation. Group personal pension plans, ethical pensions, unit and investment trusts, self invested personal pensions, executive pension schemes, funded unapproved retirement benefit schemes, are just a few more of the options.

So contact us today and we can get you the best pension advice today so that you can start toward living that financial secure future that you have always dreamed about.