ACCESS PENSIONS ADVISES INVESTORS ON RISK MANAGEMENT AND PORTFOLIO DIVERSIFICATION

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Olori Uwem

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Mar 18, 2024
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ACCESS PENSIONS ADVISES INVESTORS ON RISK MANAGEMENT AND PORTFOLIO DIVERSIFICATION

Access Pensions has emphasized the importance of balancing risk appetite while diversifying investment portfolios to achieve long-term retirement goals. This key message was delivered during their recent webinar titled "Plan Smart, Secure Your Future", under the theme "Pensions Unpacked: Mastering Retirement Planning".

The Deputy Lead Ecosystem Orchestrator at Access Pensions, Adaeze Raji, highlighted the significance of striking a balance between risk and returns in investment strategies. She pointed out that conservative investors, who prefer low-risk options, tend to focus on fixed income instruments like bonds, while those with a higher risk tolerance often opt for variable income investments such as stocks.

Raji stated, "The most important thing is balancing your risk and return scale. This is particularly relevant when looking at stocks and bonds. Whether conservative or aggressive, the key is to balance between variable and fixed income instruments."

She also stressed the value of investment diversification, advising individuals to consider multiple asset classes, including those in stronger foreign currencies, to limit potential risks and hedge against currency fluctuations. Raji encouraged investors to consult financial advisers for tailored strategies and emphasized the importance of obtaining exposure to USD assets to cushion against exchange rate vulnerabilities.

Bilkisu Ogirima, Head of Strategy and Products at Access Pensions, introduced a notable scheme allowing retirees to use 25% of their Retirement Savings Account (RSA) for mortgage down payments. This move is expected to significantly boost the housing market by helping retirees achieve homeownership.

She explained, "Unlocking RSA savings for mortgage down payments will be catalytic for the development of the housing market." While the guidelines for this scheme were set in 2022, mortgage applications under this provision began receiving approvals in the second quarter of 2023.

The conversation also covered retirement payout options. Nicholas Ahamiojie, Brand & Communications Officer, elaborated on the two main retirement payment structures: annuity and program withdrawal. Ahamiojie affirmed that Access Pensions remains committed to educating clients on these options to help them make informed decisions when transitioning into retirement.

This insightful webinar has reinforced the need for investors to strike a balance between risk and reward, explore diversified investments, and stay informed about retirement planning options to ensure a financially secure future.