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TAKING CONTROL OF YOUR PENSIONIf you are a member of the Money Purchase Section, it’s worth remembering that a higher fund generally means more pension in your pocket when you retire. The amount of a money purchase pension is not fixed, but depends on the value of your retirement account (contributions plus investment return) and the amount of pension you can buy for each pound in your account (which will vary as the cost of buying a pension changes). Therefore it’s important that you take an active interest in how your account is invested and how your investments are performing. Investing for retirement need not be daunting – the basic
aims are to: Lifestyle OptionsTo help you achieve the aims mentioned, the Scheme provides three Lifestyle options - known as the Cautious Lifestyle option, the Consensus Lifestyle option and the Consensus Plus Lifestyle option - all of them structured to achieve this balance automatically, but offering different levels of risk (i.e. exposure to price volatility) as you approach retirement. These options remove the need for you to make individual investment choices and switches. Instead, investments are automatically selected depending on how close you are to Normal Retirement Age (age 60). Funds are gradually transferred from equities to gilts and cash over either five or ten year periods ending at Normal Retirement Age. Your Lifestyle options are described in more detail in your Investment Choices booklet. You can obtain a copy from your local HR contact or from the Pensions website www.kingfisherpensions.com.
Self-Select fundsYou may prefer to manage your own investments by switching your
retirement account between a number of funds selected by the Trustees
to offer a wide range of investment types. However, there is no
automatic switching as you approach Normal Retirement Age, and you
must make any such arrangements yourself.
Making your choice…Your pension is probably your most valuable asset. The choice of how to invest your retirement account could therefore be one of the most important decisions you make. How you decide to invest these contributions will depend on your
own personal circumstances, and your attitude as to the degree of
risk that you wish to take in respect of these investments. You
need to understand what `risk' means to you. Saving for retirement,
through either a pension arrangement or direct savings, involves
managing a number of risks. |
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Please note that the above information does not constitute investment advice by the Trustee and should be used as a guide only. Should you require financial or investment advice you should contact an Independent Financial Adviser (IFA).
It’s worth knowing that equities (i.e. company shares) have historically produced the best long-term returns. However, they are volatile and therefore carry more risk (prices can move up and down quite quickly, sometimes by large amounts). Other assets, such as bonds and cash, have more stable prices,but at the expense of likely lower investment returns over the longer term. However, if you’re a long time from retirement, short-term movements in prices may be less of a concern because your fund has time to recover. Remember: pension contributions are savings for your retirement, possibly many years in the future; for example, cash is a sensible investment if you are saving for a new car, but it is a risky investment for retirement.
It’s vital that you tell the Trustees how you want your retirement account to be invested. You can do this by completing an Investment Choices/Changes form and sending it to the Kingfisher Pensions Department at the address here.
