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Investment (Investment risk (volatility of income or capital value,…
Investment
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Lifestyling
As DC members move closer to retirement, they may want to move from risk-seeking assets into better matching assets
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DB scheme investment
fundamental risk for benefit scheme investment is being unable to meet the scheme liabilities when they fall due.
behaviour of the assets relative to the liabilities is important, so need to consider:
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the nature of the assets and the extent to which matching to the liabilities can/should be achieved.
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Risk appetite
Members of DC schemes will have varying risk appetites depending on their wealth and flexibility over retirement age
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Member choice
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Members who do not have the knowledge to choose their own investment strategy could invest in the default fund.
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