Find out your Risk Score using our profiler

TO ENSURE YOU DON’T TAKE UNNECESSARY RISK WITH YOUR MONEY, USE OUR PROFILER TO FIND OUT YOUR RISK SCORE.

 
There’s a very close relationship between making money and losing money. It’s called the Risk / Reward ratio. Simply said, the more money you want to make, the more risk you have to take.

Obviously, you want to make as much money as possible. That’s a given. But you’re probably not prepared to take an unlimited level of risk. And as you limit the risk you’re willing to accept, you naturally reduce the amount of money you can make.

Take this example. If you don’t want to lose any money at all, then you should invest in a bank account, backed by the Government. That way, if the bank goes bust, the Government gives you your money back. With such security for your money, you can’t really expect to receive a great return. In fact, if the worse happens and you get a refund, inflation is likely to mean your money is worth less in real terms.

On the other hand, if you want to make a fortune, you have to take incredible risks. A bit like gambling on the outsider in a horse race. If it comes home first, you pocket a packet. But you’re much more likely to lose your stake. Clearly, you can’t afford to do that with your pension, so you’re probably somewhere in between. The question is… where?

You need to establish your view of risk.

 
Using our profiler below, you can work out your Risk Score on a scale of 1 to 10. 1 means you don’t want to take any risk with your money and 10 means you’re willing to accept a huge degree of risk in pursuit of growth.

Your Risk Score varies throughout your life. If you have a massive mortgage, you can’t really afford to watch your pension fund keep falling in value, as you don’t have much spare cash to top it up. Once your children leave home and you reach the top of your profession, you might have more money available to take more of a punt on riskier investments. And as you near uk retirement, you’ll probably want to be more cautious, to protect the pension fund you’ve built.

Once you know your Risk Score, investment is easy.

 
Simply ensure the Risk Score of your pension fund exactly matches your own Risk Score. You see, if your money is invested in a lower Risk Score area, it won’t be exposed to investments that have a good chance to grow, and you’ll miss out. And if your fund has a higher Risk Score than you, there’s a risk you’ll lose money. And you don’t want that either. The only way to ensure success is to make sure both sides of the equation are matched.

Remember, check your Risk Score every time there’s a change your circumstances, or whenever there’s an external change in legislation or taxation that could affect your pension. It’s worth bookmarking this page. It could save you a fortune over the years!

To calculate your Risk Score, make your selections and then hit the red button.