When you retire matters
Even if your retirement is some way off it’s worth thinking about when you'd like to retire, as your choice may affect your savings and investments. This is particularly important if you are invested in your pension plans' default investment option. This is because many plans have a strategy in place that aims to reduce the investment risk, by changing asset types as you get closer to your retirement age.
For example, if you select a retirement date but continue to work past it for a few more years your investments could potentially be growing more slowly due to moving into asset classes with lower growth potential. Or if you retire earlier than the date you’ve selected, your pension pot could be invested in higher risk assets. This approach aims to manage investment risk, but it doesn't eliminate it.
