How to build a simple pension portfolio for long-term investing

Start with the job of the pension

A simple pension portfolio starts with your goal. Are you investing for growth over decades, preparing for retirement soon, or drawing income from the fund?

Once the job is clear, choose an asset mix that fits. Long-term investors may need more growth assets. People closer to retirement may need more balance or stability.

Then keep the structure understandable. One diversified fund may be enough for many people. Others may combine a small number of funds with clear roles.

The best simple portfolio is one you can explain, hold through difficult markets and review without confusion. Simplicity is not basic when it helps you make better decisions.

A practical framework

• Define the goal and time horizon.
• Choose a risk level you can hold.
• Use diversified funds with clear roles.
• Keep charges in view.
• Review yearly and before retirement decisions.