Pension plans help meet your financial needs upon retirement. If you contribute to a defined contribution pension plan, you typically get to choose how your funds are invested. It is important to review your investments since retirement income is impacted by how well the investments perform.
When reviewing your investments, you should take into consideration several factors including your age, your investment risk tolerance, and your retirement plans.
Three investment tips to help you meet your retirement goals:
Review your pension investments periodically.
Your pension statement will let you know which funds your money is invested in and how well they are doing through investment earnings.
Make sure they are the right fit for you.
Make sure you are comfortable with your pension investments. Many plans offer a selection of funds so it’s important to know your options. Consider the length of time to your retirement to choose the most suitable investment option for you. Some plans have funds which automatically adjust investments to safer investments as you age; this option might be ideal for some people.
Talk to your pension plan administrator.
If you are unsure and have questions, contact your plan administrator who will help you find the resources you need.