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Because people are different, if you're 20 year-old healthy female you'll have a completely different risk profile from a 64 year-old male with health problems.
by ig1 14y ago
Because people are different, if you're 20 year-old healthy female you'll have a completely different risk profile from a 64 year-old male with health problems.
If you work in the government you might want to avoid your pension being in your own government bonds because you don't want all your eggs in one basket.
If you're an immigrant who plans to retire back to your home country you might want to limit you exposure to currency risk.
It's not just about betting on being better than the market, it's about aligning your investments (pension or otherwise) with your personal situation and objectives.
- sopooneo 14y agoPeople may be different, but within a given pension system, the various accounts are usually not.
- Evbn 14y agoThat's not possible with a pension, since members don't direct the investments.
- ig1 14y agoMaybe it's different where you are, but in the UK it's pretty common for people to pick the broad allocations of private pensions.