Should I be encouraging my retirement fund trustees to review the investment strategy and options underlying my fund, given the current market conditions?
Retirement fund trustees are obligated to seek investment vehicles that meet the needs of the general membership and generate favourable returns on your retirement savings without exposure to excessive risk. Current market conditions however are presenting significant volatility risk, with erratic returns being witnessed. For an individual member, this depends on your risk appetite and your investment time horizon. If you are close to retirement, exposure to current market volatility is a significant risk, which could adversely affect your retirement savings. This would occur if your retirement investment vehicle includes significant exposure to local and global equity markets with little or no capital protection and you retire when the market is at a relatively low level. On the other hand, members who are far from retirement may be well served by riding out this period of volatility and falling markets. Even with a high exposure to local and global equity markets, investments are exp
