Secure your post-retirement days

Should I Invest in Pension?

In financial terms investment is the process of buying assets with the intention of making a profitable return in future, either by reselling or rental income.


It is important to see your money growing, if it’s not being used and, moreover once you have stopped working there’s no income you need to support your living standards post-retirement.


It’s a long-term strategy to secure your days after retirement, people usually start building investment portfolio at their 20’s and 30’s as they start earning.

Do I need to make Investing Decisions?

Investment usually practiced in following different modes: Personal, Stakeholder, Defined Contribution, and Defined Benefit Pensions.

Personal and Stakeholder Pension


Where in Personal and Stakeholder Pensions, individual will be the key player while choosing the investment plans. You have to make your own arrangements for your payments to be done.

Defined Contribution and Benefit Pension


In Defined Contribution and Benefit Pension, investment plans are provided by the employer to the employee, where the employee has to choose among the provided investment options.

State Pension

The pension you get from the government. You get it when you reach state pension age and it’s not automatic, one has to claim in order to avail it.


It’s crucial to have investment goals in order to secure your post-retirement days and to achieve the investment goals it’s important that we make the right choice among the investment options. Here’s some information to help you decide the best investment option(s) that might suit you.


Choosing your Investment options!

Asset Classes

Group of similar investments like stock, fixed income and money market instruments.



Equities are part ownership in a company known as stock/shares. Overseas equities subjects to the change of foreign currency exchange rates. Because it’s more volatile (frequent fluctuations), comes under long-term investments.



Bonds are loans to a government or company for a set time period and the owner receives interest rates timely. Bonds are subject to high risk when issued for a longer time due to inflation risk.


Money Market Instruments

MMI are debt securities like bankers acceptance, certificates of deposit or treasury bills etc. Having low-risk and for short duration. Can be riskier than cash deposit accounts.



Property includes direct investment in building and land – Real Estate. Return can be obtained from rental income or resale of the property. It can take a longer time to sell the property when you want and get the price you want.

Investment Approaches


Passive Funds

Passive Funds Investment aims to replicate the performance of a market index or portfolio. Returns will usually be lower than active benchmark alternatives.


Active Funds

Active Funds Investment aims to achieve returns higher than the performance of any benchmark like market index, inflation etc. Subjected to higher returns than passive alternatives.


Absolute Returns

Investment applies complex strategies to ensure a positive return regardless of the market conditions. Lower risk, but doesn’t guarantee positive returns.

Lifestyle Profiles

Lifestyle profiles make it easy for you to save for retirement, you don’t need to do anything except a regular review of your investment to make sure that they are on the way to meet your goals.


Bonus Tip
The key principle to minimize the risk and maximize the returns; “Don’t put all your eggs in one basket.” called Diversification: Idea is to create a portfolio having multiple investments, to reduce the risk.