Risk matters to investment goals

In retirement planning, an important factor is the risk you take.

- Jaco Fouché

So let's look at how risk impacts your retirement plan.

Importance of the risk you take Risk is how much uncertainty you accept for possible returns. Your investment may not perform as expected.

Higher risk, higher potential returns: When you are young, you can take more risk. This could mean investing in shares, which often have higher returns but more ups and downs.

Lower risk as retirement approaches: This protects your savings. Shifting to a balanced portfolio with bonds and income-producing investments can add stability and some growth. This is especially important if you consider life annuities.