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The goal is to make enough money for pensioners to live off. If the goal was to reduce risk then pensions would be better off being held in cash. But pension
by admax88q 6y ago
The goal is to make enough money for pensioners to live off.
If the goal was to reduce risk then pensions would be better off being held in cash. But pension funds dont have enough cash to meet needs so they have to grow.
- GordonS 6y agoPension pots actually often do follow a path of minimising risk, with the percentage held in cash and government bonds increasing as pensionable age nears.
- naveen99 6y agoThey have a specific percentage growth targets which gets adjusted periodically based on interest rates and life expectancy.