I?m uncertain about the volatility in the market, should I rather invest my retirement savings in cash?
If your retirement savings are invested in a guaranteed investment product (such as a smoothed bonus fund), there is little need to consider cash to reduce exposure to volatile returns. These products specifically provide stable and secure returns without limiting the scope for an equity market recovery. If you are risk averse or close to retirement and your retirement savings are invested in a market linked product with significant exposure to equity markets, it may be worth investing in cash for the improved security. However, your savings will lose out on any returns generated by an equity market recovery while they are not invested in equities. Cash is often regarded as a suitable investment in volatile times like these as it presents far lower risk of sudden and severe changes in value compared to equity markets. This, however, depends on whether your retirement fund provides the facility to make your own investment choices, as well as your appetite for risk. It also depends on yo
