Selecting a risk strategy that best suites you is an important part of your retirement savings and investment strategy. The higher your risk level, the bigger your potential gains but also your potential losses. Taking risk over the long term is critical to increasing investment returns and reaching your investment goals. Generally speaking, the longer you intend investing your money, the more risk you are able to take. This is because both your chance of losing money and the volatility of your returns reduces the longer you hold an investment. Over a long period of time the years in which your returns are poor can be offset by the years in which the returns are very good. This does not mean that you cannot take risk closer to retirement, or during retirement for that matter. We are living longer and longer making it necessary to take risk in order to achieve returns. The chart below shows the typical range of possible investment gains and losses per year by risk strategy. During our online process, you will be asked to select a risk strategy that best suits you. The pink marks show the expected average yearly return per risk strategy. The vertical lines on represent the likely range of possible returns around this average every year.