What would you like to do?
Explore how I can invest for retirement
Our Modular iPlan brings pensions, ISAs and other investments together in one place.Find out more
See what I could get in retirement
Get a personalised illustration to see what you could get by investing with James Hay.
How can I take money out of my pension
If you are 55 or over, you can start accessing your pensions now – and we’re here to help.
Register for an online account
Set up your James Hay Online Account now – and get ready to invest.
Few of us have sufficient ready cash available to support us when we wind down or stop work. This is why many people turn to the growth and income potential of the stock market to help.
The amounts you could get in retirement by investing with a plan such as the James Hay Modular iPlan will depend on a number of things. These include:
- How much money you invest into the plan and how often
- How long you invest for
- Your choice of investments – and how these perform
- The charges that are deducted over the life of the plan
Managing external factors
Some factors that will determine the size of your pension fund are outside your control. These include inflation, changes to the tax treatment of pensions and other government policy. But the major influence is the performance of the stock market and how this affects your chosen investments. In particular, a drop in the market close to when you’d planned to access your savings could reduce the value of your pension fund and leave no time to recover the losses.
While you can’t control stock market falls or rises, you or a regulated financial adviser can help to manage the impact of market movements – for example:
1. Keep your portfolio well diversified across different investments so a fall in the value of one investment may be offset by a rise in another. Investment diversification The practice of spreading an investment portfolio across different types of investments (e.g. equities, bonds, property and commodities), different markets (e.g. the UK, Europe, US and Asia) and different industry sectors (e.g technology, healthcare, energy) so risk isn’t concentrated too heavily in any single part of the market. Diversification is intended to help reduce volatility in an investment portfolio. can be achieved by investing in different markets, asset classes (e.g. shares and bonds) and industry sectors.
2. Check that the level of investment risk is appropriate to your tolerance for volatility The tendency for investments to fluctuate in value. The greater the volatility, the higher-risk an investment is considered to be. Investment diversification is used to reduce volatility in an investment portfolio. and potential losses. A regulated financial adviser can work with you to determine your appropriate level of risk.
3. Keep your level of investment risk appropriate to your current time horizon. As a broad rule, the less time you have left, the less risk you can afford to take. This might for example, mean moving out of equity funds An investment fund that invests in a portfolio of company shares – also known as equities. into bond funds An investment fund that invests in securities that pay a fixed income such as gilts issued by the UK government or corporate bonds issued by companies. or cash as you get close to accessing your pension.
Managing investment risk is a critical part of retirement wealth-planning. If you don’t feel you can manage yourself, please speak to a regulated financial adviser who can help create an appropriate investment strategy for you. You can find a regulated adviser close to where you live or work at www.unbiased.co.uk or call 0800 023 6868.
Get a personalised illustration
Our illustration tool lets you get a personalised projection of what the Modular iPlan could give you, based on your chosen products, how much money you put in, the investments you choose and the costs involved. You can create and save as many illustrations as you wish.
Please remember that the projections in these illustrations are indicative only and based on assumed growth rates, which are not guaranteed. You will need to register with James Hay to get an illustration.